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Financing

Sweetgreen seeks to raise about $275M with its IPO

The fast-casual salad chain revealed the terms of its initial public offering Tuesday, saying it intends to sell its shares for between $23 and $25 apiece.
Sweetgreen
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Sweetgreen on Tuesday revealed the terms of its IPO Tuesday, saying it intends to raise roughly $275 million when it goes public.

The fast-casual salad chain will price its shares between $23 and $25, according to its updated prospectus.

That would put Sweetgreen’s valuation at as much as $2.7 billion. The 140-unit chain has yet to be profitable during any quarter since its founding in 2007.

“To date, we have not achieved profitability in any fiscal period, in large part because we have consciously invested in our operating and technology foundation,” Sweetgreen noted in its S-1 filing.

The chain reported its restaurant-level profit margin this year is 12%, on average unit volumes of $2.5 million. In 2019, Sweetgreen’s margins were 16%, with $3 million AUVs. The brand, which operates in 13 states, saw its same-store sales decline 26% in 2020, with losses of $142 million that year. This year, same-store sales have turned positive 21%, with $87 million in losses.

Sweetgreen confidentially submitted its draft registration statement to go public in June. Four months later, it officially filed to go public under the ticker symbol SG.

Sweetgreen said it will use the IPO proceeds for “general corporate purposes,” as well as further developing the technology it acquired after purchasing Spyce, a robot-powered bowl concept with an electric delivery fleet. The fast casual, known for serving salads with upscale ingredients, said it intends to double its store count over the next three to five years.

Sweetgreen is just one of many restaurant brands making go-public plans this year. Early Tuesday, Panera Brands—the multi-concept platform of Panera Bread, Caribou Coffee and Einstein Bros., said it intends to go public with Danny Meyer’s USHG Acquisition Corp. as a “cornerstone partner.”

Portillo’s, Krispy Kreme, Dutch Bros and First Watch have also gone public this year.

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