Sweetgreen ( NYSE: SG ) stock slipped nearly 10% on Tuesday as an earnings miss and tempered full-year forecast impacted the stock.
For the third quarter, a $0.43 loss on earnings per share came up $0.07 short of estimates while $124M in revenue was $5.44M below the analyst consensus. The chain recorded a $49.3M loss from operations in the quarter despite cost-cutting measures, widening from the $32.3M loss in Q3 2021.
“We remain relentlessly focused on continuous operational improvement and delivering exceptional service to our customers by adding the sweet touch one customer at a time,” CEO Jonathan Neman commented. “Sweetgreen is in the early stages of building a national brand that leads and defines a category and we are excited about our expansion plans in 2023.”
Despite his confidence, the company warned that its fourth quarter results would come in on the lower end of prior forecasts. As the company previously projected a range of $480M to $500M in revenue for the year, the lower end of that range suggests a likely miss on the $488.92M analyst consensus.
Shares of the Los Angeles-based salad chain slid 9.64% as of 5PM ET on Tuesday.
Read more on the restaurant’s new dessert offerings .
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Sweetgreen stock wilts on earnings miss, cautious guidance