Sweetgreen tracking record gain after Q1 rev beat

SWEETGREEN

10/05/2024 15:05

(Updates)
    ** Sweetgreen's  SG.N  shares surge >40% early Fri, on
course for biggest one-day pct gain since restaurant chain's
2021 IPO, after qtrly rev tops expectations
    ** SG last up 44.7% at $34.10, after hitting highest since
Mar 2022
    ** About 7 mln shares have changed hands so far vs stock's
10-DMA volume of ~2.7 mln shares, per LSEG
    ** Co late Thurs reported Q1 rev of ~$158 mln, up 26% yr/yr,
above LSEG consensus estimate of $152 mln
    ** Rev increase primarily due to $21.1 mln of incremental
rev associated with 41 net new restaurant openings during or
subsequent to fiscal Q1 of 2023, co said
    ** For FY 2024, it projected rev of $660-$675 mln and
same-store sales to increase 4%-6%
    ** Reacting to report, RBC hikes PT from $20 to Street-high
$35, per LSEG, and TD Cowen boosts PT from $22 to $26
    ** 6 of 9 brokerages rate SG "strong buy" or "buy", 2 rate
"hold", while 1 has "sell" recommendation; median PT is $25
    ** With move on the session, stock has tripled YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))