LOS ANGELES - Sweetgreen , Inc. (NYSE:SG), a leading foodservice brand specializing in seasonal, sustainably-sourced salads and bowls, announced the results of its Annual Meeting of Stockholders held virtually on June 13, 2024. Shareholders voted to re-elect all nine director nominees, ratified the appointment of Deloitte & Touche LLP as the independent accounting firm for the upcoming fiscal year, and approved executive compensation on an advisory basis.
The re-elected board members, who will serve until the 2025 annual meeting or until their successors are elected, include Neil Blumenthal, Julie Bornstein, Cliff Burrows, Nicolas Jammet, Valerie Jarrett, Youngme Moon, Jonathan Neman, Nathaniel Ru, and Bradley Singer. The decision to retain Deloitte & Touche LLP for the fiscal year ending December 29, 2024, was also affirmed, with an overwhelming majority of votes in favor.
Additionally, the stockholders endorsed the compensation of the company's named executive officers as outlined in the revised definitive proxy statement filed with the SEC on April 22, 2024. This advisory vote, commonly referred to as "say on pay," provides shareholders with the ability to express their approval or disapproval of the company's executive compensation plans.
The detailed voting results for each proposal were as follows:
- Proposal 1: All director nominees were elected with substantial majorities, with the number of votes withheld ranging from approximately 10.5 million to 21 million, against the backdrop of over 183 million votes cast in favor for each nominee.
- Proposal 2: The ratification of Deloitte & Touche LLP as the company's independent registered public accounting firm passed with 217,767,807 votes for, 129,142 against, and 23,802 abstentions.
- Proposal 3: The advisory approval of executive compensation received 203,198,832 votes in favor, 826,532 against, and 159,373 abstentions.
In other recent news, Sweetgreen Inc. has made significant strides in its market performance and expansion plans. The fast-casual restaurant chain reported a 26% increase in Q1 sales, reaching $157.9 million, and a 5% rise in same-store sales. Digital sales comprised a significant 59% of total revenue, indicating a strong online presence. Despite the robust growth, the company reported a net loss of $26.1 million for the quarter, an improvement from the previous year's loss.
Goldman Sachs (NYSE:GS) initiated coverage on Sweetgreen with a Buy rating and a price target of $39.00, suggesting a potential 16% upside from recent stock performance. The firm anticipates Sweetgreen's strategic expansion and product innovation, including the introduction of protein plates, will drive mid-single-digit same-store sales growth.
Sweetgreen plans to open 23-27 new locations in 2024 and aims for a unit growth of 15% in 2025, accelerating to 20% in 2026. The company's Infinite Kitchen concept, which has demonstrated higher margins and increased ticket sizes, is expected to play a significant role in future strategy. These recent developments indicate a strong growth trajectory and strategic expansion for Sweetgreen.
InvestingPro Insights
As Sweetgreen, Inc. (NYSE:SG) continues to uphold transparent corporate governance practices, investors may also be interested in the financial metrics and market performance of the company. According to real-time data from InvestingPro, Sweetgreen boasts a market capitalization of $3.57 billion. The company's revenue has seen a healthy growth of 25.23% over the last twelve months as of Q1 2024, with a quarterly increase of 26.22% in Q1 2024. Despite these growth figures, the company operates with a gross profit margin of 18.61%, which is considered weak by industry standards.
Investors should note that Sweetgreen's stock price has experienced significant volatility, with a 42.2% return over the past three months and an impressive 192.31% increase over the past six months. This can be an indicator of both opportunity and risk, reflecting the company's high price volatility as mentioned in the InvestingPro Tips. Additionally, Sweetgreen does not pay dividends, which may influence investment decisions for those seeking regular income streams from their investments.
For those looking to delve deeper into Sweetgreen's financial health and stock performance, InvestingPro offers additional insights and tips. There are currently 12 additional InvestingPro Tips available, which can be accessed by visiting: https://www.investing.com/pro/SG. For readers interested in a comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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