Why Is Restaurant Company Sweetgreen Stock Surging Today?
Portfolio Pulse from Lekha Gupta
Sweetgreen, Inc. (NYSE:SG) shares surged after reporting better-than-expected Q2 FY24 revenue results. Revenue increased by 21% Y/Y to $184.6 million, beating the consensus of $180.78 million. Same-store sales rose 9% Y/Y, driven by menu price increases and higher traffic. The company raised its FY24 revenue guidance to $670 million – $680 million and same-store sales growth to 5% – 7%. Investors can gain exposure via AdvisorShares Restaurant ETF (NYSE:EATZ) and Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (NASDAQ:PEZ). SG shares are up 26% at $33.08.

August 09, 2024 | 1:42 pm
News sentiment analysis
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POSITIVE IMPACT
AdvisorShares Restaurant ETF (EATZ) may see positive movement as Sweetgreen, a component, reported strong Q2 FY24 results and raised FY24 guidance.
Sweetgreen's strong performance and raised guidance could positively impact EATZ, which includes Sweetgreen as a component.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (PEZ) may see positive movement as Sweetgreen, a component, reported strong Q2 FY24 results and raised FY24 guidance.
Sweetgreen's strong performance and raised guidance could positively impact PEZ, which includes Sweetgreen as a component.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Sweetgreen reported a 21% Y/Y increase in Q2 FY24 revenue to $184.6 million, beating estimates. Same-store sales rose 9% Y/Y. The company raised its FY24 revenue guidance and same-store sales growth projections. SG shares surged 26%.
The significant revenue beat and raised guidance are strong positive indicators for Sweetgreen's stock, leading to a 26% surge in share price.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100