Sweetgreen Shares Skyrocket by 76% as it Goes Public

The salad chain is hoping to become the Mcdonald's of a more health-conscious generation.

Sweetgreen-Shares-Skyrocket-by-76%-as-it-Goes-Public

Sweetgreen salad chain shares closed 76 percent higher on Thursday afternoon after it made its public market debut. The company’s stock is trading under the symbol “SG” on the New York Stock Exchange.

At one point, shares were 91 percent higher. Sweetgreen priced its IPO shares at $28 each, and its stock opened at a commanding $52 per share. In all, 13 million shares were sold and raised an additional $364 million for Sweetgreen. After shares surged, the company had a market value of over $5.5 billion.

Sweetgreen was founded in 2007 by three Georgetown University graduates — current CEO Jonathan Neman, Nathaniel Ru, and Nicolas Jammet. Based out of the Los Angeles area, Sweetgreen offers customizable salad and warm bowl menu items that appeal to health-conscious consumers who also want convenience.

The restaurant chain has utilized technology solutions to cater to online consumers and reduce lines inside its restaurants. Digital sales account for over two-thirds of Sweetgreen’s revenue.

Neman said, “We like to say we want to build the McDonalds of our generation.”

The company reported a $141.2 million net loss at the end of its fiscal year on December 27. At that time, it reported a revenue of $220.6 million. The restaurant chain likely was negatively impacted by the pandemic, as so many in the service industry have been.

But this year, Sweetgreen has rebounded from its pandemic lows. Sales have been 21 percent higher as of September, and its losses were less than they were in September of last year. Last September, the chain saw a $100.2 million loss. This year, it was $86.9 million.

Sweetgreen employs over 4,000 workers and has 140 restaurants located in 13 states and Washington, D.C. The company is hoping to double its footprint over the next five years.

 

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