By Levi Sumagaysay
Sweetgreen Inc. shares plunged more than 22% after hours Tuesday after the salad restaurant chain’s second-quarter financial results missed Wall Street’s expectations.
Sweetgreen /zigman2/quotes/205612222/composite SG +6.34% reported a second-quarter loss of $40 million, or 36 cents a share, compared with a loss of $26.9 million, or $1.55 a share, in the year-ago period. The company attributed its wider loss to greater stock-based compensation expenses. Sweetgreen did not provide adjusted earnings. Revenue rose to $124.9 million from $86.2 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 30 cents a share on revenue of $130.2 million.
The company did not provide a third-quarter forecast in its statement, but said it would be recognizing restructuring costs from layoffs affecting 5% of its workforce this week, and a reduction in its real-estate footprint. It said it expects to open a net of 35 new restaurants this year.
Sweetgreen stock had fallen more than 4% in the regular session to close at $16.85 on Tuesday. The company’s shares have fallen about 47% year to date, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.97% has seen a 13% drop so far this year.