Sweetgreen Shares Rip Higher: What's Behind The Move?

Sweetgreen Inc SG is trading higher Friday after the company reported better-than-expected top-line financial results and issued guidance above estimates. 

Sweetgreen said fourth-quarter revenue increased 63% year-over-year to $96.4 million, which beat the $84.71 million estimate. The company reported a quarterly earnings loss of $1.14 per share, which was worse than the estimate for a loss of 66 cents per share. 

"Our fourth quarter results demonstrate continued recovery from the pandemic," said Mitch Reback, CFO of Sweetgreen. "As we enter 2022, we are well positioned to make further progress towards our financial goals that prioritize unit growth and profitability."

Sweetgreen expects first-quarter revenue to be between $100 million and $102 million versus the $101.24 million estimate. Full-year revenue is expected to be between $515 million and $535 million versus the $513.12 million.

Following the quarterly results, Oppenheimer analyst Brian Bittner maintained Sweetgreen with an Outperform rating and lowered the price target from $41 to $37.

See Also: Why Duolingo Shares Are Trading Higher Today

SG Price Action: Sweetgreen has traded as low as $21.18 and as high as $56.20 since its public debut in November.

The stock was up 24% at $26.45 at time of publication.

Photo: courtesy of Sweetgreen.

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