LOS ANGELES—Nicolas Jammet, Chief Concept Officer of Sweetgreen, Inc. (NYSE:SG), recently reported a series of stock transactions involving the company's Class A common stock. According to filings with the Securities and Exchange Commission, Jammet sold a total of 2,272 shares at an average price of $40.01, amounting to approximately $90,902.
The transactions, which took place on October 28, included the sale of 1,009 shares and an additional 1,263 shares, both executed under a pre-arranged 10b5-1 trading plan. Jammet also exercised stock options to acquire 1,263 shares at a price of $0.96 per share.
Following these transactions, Jammet's direct ownership stands at 1,930,233 shares, while additional shares are held in various trusts. The company, headquartered in Los Angeles, continues to be a prominent player in the retail-eating sector.
In other recent news, Sweetgreen Inc. reported a 21% year-over-year increase in revenue to $184.6 million in its second quarter and announced the appointment of Christopher Tarrant as Senior Vice President and Chief Development Officer. The company also revealed plans to open 24 to 26 new restaurants in 2024, more than half of which will feature an Infinite Kitchen. For fiscal year 2024, Sweetgreen projects a revenue range of $670 million to $680 million and an adjusted EBITDA between $16 million and $19 million.
Sweetgreen's Infinite Kitchen initiative has been highlighted by TD Cowen, which maintained its Buy rating and $43.00 price target for the company. The firm's analysis suggests that the initiative could yield a 56% cash-on-cash return on capital expenditures and contribute to a 70-130 basis points increase in the net annual EBIT margin.
However, Piper Sandler downgraded Sweetgreen's stock from Overweight to Neutral, while Oppenheimer increased its price target to $40.00, reflecting optimism about the company's growth prospects. These recent developments reflect a variety of perspectives on Sweetgreen's potential growth, particularly the potential impact of the Infinite Kitchens initiative and the company's expansion plans.
InvestingPro Insights
Nicolas Jammet's recent stock transactions at Sweetgreen, Inc. (NYSE:SG) reflect a dynamic period for the company, which is further illuminated by recent financial data and market trends. According to InvestingPro data, Sweetgreen has experienced significant growth, with a remarkable 240.8% year-to-date price total return as of the latest available data. This surge aligns with the company's strong performance in the market, as evidenced by its 71.38% price total return over the past six months.
Despite this impressive stock performance, InvestingPro Tips reveal that Sweetgreen operates with some financial challenges. The company is not profitable over the last twelve months, and analysts do not anticipate profitability in the current year. This context adds depth to understanding Jammet's decision to sell shares, potentially capitalizing on the stock's recent gains.
Interestingly, Sweetgreen's market capitalization stands at approximately $4.4 billion, trading at a high revenue valuation multiple. This suggests investor optimism about the company's future prospects, despite current profitability concerns. The company's revenue growth of 24.75% over the last twelve months as of Q2 2024 indicates continued expansion in the competitive retail-eating sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Sweetgreen, providing a deeper dive into the company's financial health and market position.
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