In a recent filing with the Securities and Exchange Commission, Sweetgreen, Inc. (NYSE:SG) disclosed that Nathaniel Ru, the company's Chief Brand Officer, has sold a significant portion of his shares. On December 5, Ru sold a total of 33,712 shares of Sweetgreen’s Class A Common Stock for approximately $1.35 million. The shares were sold at prices ranging from $40.11 to $40.60.
Following these transactions, Ru's direct holdings in Sweetgreen are reported to be zero shares. However, he continues to hold a substantial number of shares indirectly through various trusts. These transactions were executed under a pre-established 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks. InvestingPro subscribers can access detailed insider trading patterns and 9 additional key insights about Sweetgreen, including comprehensive financial health metrics that show the company maintains a Fair overall rating despite trading at high multiples.
In other recent news, Sweetgreen Incorporated has been making strides in its growth strategy, as evidenced by its Third Quarter 2024 Earnings Call results and the endorsement from TD Cowen. The company reported a 13% year-over-year increase in sales, reaching $173.4 million, and same-store sales growth of 6%. Net loss was also reduced to $20.8 million from $25.1 million year-over-year. Sweetgreen opened five new restaurants during the quarter, bringing the total to 236 locations, with plans for at least 40 new openings in FY 2025.
TD Cowen maintained its Buy rating and $45.00 price target for Sweetgreen, expressing confidence in the company's growth strategy and the potential of its Infinite Kitchen concept. The firm sees the Infinite Kitchen as a key factor in margin expansion over the medium term and anticipates that the expansion of average unit volume through this concept will be the next phase in Sweetgreen's growth narrative. Accordingly, Sweetgreen was elevated to the #2 pick by the analyst, indicating a strong belief in the company's performance potential.
These developments reflect Sweetgreen's ongoing efforts to execute its growth plan, leveraging both traditional same-store sales drivers and innovative concepts like the Infinite Kitchen. The company also raised its fiscal 2024 guidance, projecting revenue between $675 million to $680 million and same-store sales growth of 6% to 7%.
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