What to expect from Sweetgreen's (SG) Q3 earnings

What happened

Sweetgreen is scheduled to report third-quarter results after market hours this Thursday. Analysts expect revenue to decline 1.4% year on year, while their estimates have generally been reconfirmed over the past 30 days. Last quarter, revenue rose 3.8% to $192.7 million but missed expectations.

Confirmed

Global impact / market context

The expected revenue decline points to a possible slowdown in sales, which can limit the cash Sweetgreen has to cover operating costs or fund expansion. Investors will also compare results with the earlier revenue miss and weak full-year EBITDA guidance, a forecast of operating earnings before certain costs.

Analyst inference

The article reports that Chipotle’s revenue grew 9.6%, meeting expectations, while Wingstop’s rose 5.3%, below estimates; both shares nevertheless gained after reporting. These mixed peer results offer context, but do not establish how Sweetgreen’s sales or share price will respond.

Confirmed

What to watch

1. Check whether Sweetgreen’s reported third-quarter revenue is above or below the expected 1.4% year-on-year decline, and whether it meets analysts’ estimates. Analyst inference
2. Look for any update to full-year EBITDA guidance, the company’s forecast of operating earnings before certain costs, after last quarter’s significant shortfall. Analyst inference
3. Compare Sweetgreen’s sales performance with the recent peer reports: Chipotle grew revenue 9.6%, while Wingstop’s revenue rose 5.3% and missed estimates. Confirmed

Evidence

• stockstory.org