Shares of salad chain Sweetgreen closed 76% higher on Thursday afternoon, surging during the company’s public market debut.
The stock opened at $ 52 a share, giving the company a market value of more than $ 5.5 billion. The company valued its initial public offering at $ 28 per share on Wednesday night, above its marketed range of $ 23 to $ 25 per share. Sweetgreen sold 13 million shares, raising $ 364 million for the company.
The stock trades on the New York Stock Exchange under the symbol “SG”.
Founded in 2006, Sweetgreen has found a loyal following with its menu of customizable salads and hot bowls that appeal to consumers looking for healthy and convenient options. The chain has also looked at technology, pushing its customers to order their salads online to reduce queues inside restaurants. More than two-thirds of its revenue comes from digital sales.
“We like to say we want to build the McDonald’s of our generation,” co-founder and CEO Jonathan Neman said on CNBC’s “Squawk Box”.
In the year ended Dec. 27, Sweetgreen reported a net loss of $ 141.2 million on revenue of $ 220.6 million, according to its prospectus. The chain’s comparable store sales declined 26% during this period after climbing 15% in the prior year.
This year, the chain has rebounded from pandemic lows. Comparable store sales increased 21% as of September 26. Its losses narrowed to $ 86.9 million from a loss of $ 100.2 million a year ago.
In August, Sweetgreen acquired Spyce, a Boston catering company that has made a name for itself with robotic catering technology.
Sweetgreen operates 140 restaurants in 13 states and Washington, and plans to double its restaurant presence over the next five years.
Other restaurant chains made their public market debut this year, with mixed results. Shares of First Watch Restaurant Group have fallen 9% since its IPO in October, while shares of coffee chain Dutch Bros. have climbed 55% since its own offering.
This is last minute news. Please check for updates.
–
