Casual salad chain Sweetgreen (NYSE:SG) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Sweetgreen beat analysts' revenue expectations by 3.9% last quarter, reporting revenues of $157.9 million, up 26.2% year on year. It was a solid quarter for the company, with an impressive beat of analysts' gross margin estimates and full-year revenue guidance topping analysts' expectations.
Is Sweetgreen a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Sweetgreen's revenue to grow 18.5% year on year to $180.8 million, slowing from the 22.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sweetgreen has missed Wall Street's revenue estimates six times over the last two years.
Looking at Sweetgreen's peers in the modern fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wingstop delivered year-on-year revenue growth of 45.3%, beating analysts' expectations by 7.3%, and Chipotle reported revenues up 18.2%, topping estimates by 1.1%. Wingstop traded down 1.7% following the results while Chipotle was also down 1.9%.
Read our full analysis of Wingstop's results here and Chipotle's results here.
Investors in the modern fast food segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Sweetgreen is up 6.6% during the same time and is heading into earnings with an average analyst price target of $33.8 (compared to the current share price of $26.01).
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