Sweetgreen Inc. narrowed its net loss in the fourth quarter compared to a year ago. It also increased its overall revenue. The West Adams-based restaurant chain reported a net loss of $49.3 million (-44 cents a share) for the quarter ending Dec. 25, compared with a net loss of $66.2 million (-$1.14) in the same period a year earlier. Revenue increased from the prior year by 23% to $119 million.
The decrease in the net loss was attributed by the company to a $15.4 million decrease in other expenses and a $7 million decrease in stock-based compensation expenses.
Sweetgreen opened 10 new restaurants during the fourth quarter, the same number as the previous year’s fourth quarter.
Jonathan Neman, co-founder and chief executive of Sweetgreen, said that the company enters the new year with solid momentum. He added that he remains confident that the Sweetgreen brand will endure for years to come.
Last year, the company was faced with a challenging economic backdrop and some specific operating challenges, Neman said.
“Accordingly, we went back to basics and focused on our Intimacy at Scale playbook, which is showing signs of success,” he said in a statement.
Sweetgreen debuted in 2007 when college friends Neman, Nicolas Jammet, the chief concept officer, and Nathaniel Ru, who serves as treasurer and chief brand officer, opened a small eatery near Georgetown University’s campus. By the time they moved the company’s headquarters to the L.A. area in 2016, it had 39 locations. At the end of the fourth quarter, it owned and operated 186 restaurants in 16 states and Washington, D.C. Another 13 locations are set to open soon, according to the Sweetgreen website.
