Los Angeles-based fast-casual chain Sweetgreen expects to sell stock at $23-$25 per share, raising up to $312.5 million in an initial public offering, according to the early terms of its IPO released in an updated SEC filing Tuesday.
Sweetgreen went public on Oct. 26, moving onto the New York Stock Exchange under the ticker symbol SG. The salad chain has grown to 140 units in 13 states since launching in 2007 in Washington, D.C. with average unit volume of $2.5 million, according to the original U.S. Securities and Exchange Commission filing.
Sweetgreen was initially valued at $1.78 billion as of January, according to a funding round led by Durable Capital Partners. But if shares are sold at the upward end of the predicted range, valuation could be closer to $2.7 billion.
“We currently intend to use the net proceeds we receive from this offering for general corporate purposes, including working capital, operating expenses, and capital expenditures, as well as developing the technology acquired in our recent acquisition of Spyce Food Co.,” Sweetgreen said in the updated SEC filing. “We may also use a portion of the net proceeds we receive from this offering to acquire complementary businesses, products, services, or technologies,” though the company does not have any current plans for merbers or acqusitions.
Sweetgreen reported 2020 revenues of $303 million in 2021 through Sept. 26, with 68% of that revenue coming through digital channels. The chain reported a net loss of $86.9 million year to date, an improvement from the loss of $100.2 million for the same period the year prior.
“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,” the SEC filing explained. “We believe this foundation has positioned us to achieve the above growth strategies, while also implementing restaurant-level efficiencies (such as enhanced labor management, automation and optimal store layouts) and economies of scale in our supply chain.”
The company has further plans to grow both domestically and internationally with plans to open 30 more restaurants in the final quarter of 2021 and double its current footprint over the next three to five years.
Sweetgreen’s journey to its initial public offering is one of a number of restaurant IPOs this year, including the just-announced plans for Panera to go public, followed by IPO announcements from also JAB holding-owned Krispy Kreme, Portillo’s, Sweetgreen, First Watch and Dutch Bros.
Contact Joanna at [email protected]
Find her on Twitter: @JoannaFantozzi