Sweetgreen, Inc. (NYSE:SG) Director Julie Bornstein recently sold 4,464 shares of the company’s Class A common stock. The shares were sold at a price of $40 each, resulting in a total transaction value of $178,560. After this transaction, Bornstein owns 37,101 shares in the company. The sale was disclosed in a filing with the Securities and Exchange Commission, giving investors insight into the inner workings of the fast-growing restaurant chain.
In other recent news, Sweetgreen Inc. continues to maintain growth momentum, as evidenced by its third quarter 2024 earnings call. The company reported a 13% year-over-year increase in sales, reaching $173.4 million, and a 6% increase in same-store sales. Additionally, Sweetgreen saw its margins improve and its net loss decrease from $25.1 million year-over-year to $20.8 million.
TD Cowen, in its recent analysis, maintained a buy rating for Sweetgreen, expressing strong belief in the company’s growth strategy and the potential of its Infinite Kitchen concept. The firm sees Unlimited Kitchen as a key driver of margin expansion over the medium term, a detail it believes is currently underappreciated by the market.
Sweetgreen has also demonstrated strategic expansion, opening five new restaurants in Q3, bringing the total to 236 locations. The company plans to open at least 40 new restaurants in fiscal 2025, half of which will feature Infinite Kitchen technology.
Despite a slight increase in general and administrative expenses to $36.8 million, Sweetgreen raised its fiscal 2024 guidance, with revenue between $675 million and $680 million and same-store sales up 6% to 7%. . The company also has plans for menu expansion and better marketing strategies to expand its brand beyond salads.
InvestingPro Insights
The recent insider selling by Julie Bornstein comes at a time when Sweet Green (NYSE:SG) is experiencing significant market momentum. According to data from InvestingPro, the company’s stock has shown a significant price return of 331.94% over the past year, with a 23.1% increase in the last week alone. This performance has lifted the stock price to 96.45% of its 52-week high, indicating strong investor confidence.
However, it’s important to note that Sweetgreen’s financial fundamentals paint a mixed picture. The company’s revenue growth for the last twelve months as of Q3 2023 stands at 21.72%, indicating continued expansion. Still, an InvestingPro tip shows that Sweetgreen isn’t currently profitable, with adjusted operating income of -$90.05 million for the same period.
Despite the lack of profitability, Sweetgreen’s market capitalization of $4.38 billion suggests investors are betting on its future potential. The company’s price-to-book ratio of 10.3 indicates that the stock is trading at a premium to its book value, which is consistent with another InvestingPro tip highlighting that Sweetgreen Trading at a higher revenue valuation multiple.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional recommendations for Sweetgreen, providing a deeper understanding of the company’s financial health and market position.
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