Sweetgreen, Inc. (NYSE:SG) Q3 2022 Results Conference Call November 8, 2022 5:00 PM ET

Company Participants

Rebecca Nounou - Head of Investor Relations

Jonathan Neman - Co-Founder and Chief Executive Officer

Mitch Reback - Chief Financial Officer

Conference Call Participants

John Ivankoe - JPMorgan

Andrew Charles - Cowen

Jared Garber - Goldman Sachs

Matt Curtis - William Blair

John Glass - Morgan Stanley

Brian Bittner - Oppenheimer

Jon Tower - Citi

Katherine Griffin - Bank of America

Chris Carril - RBC Capital

Operator

Good afternoon, ladies and gentlemen. Welcome to the Sweetgreen Q3 2022 Earnings Conference Call. [Operator Instructions] Please be advised that this call is being recorded.

[Operator Instructions]

And now at this time, I'd like to turn the conference over to Rebecca Nounou, Head of Investor Relations. Please go ahead.

Rebecca Nounou

Thank you, and good afternoon, everyone. Here with me today are Jonathan Neman, Co-Founder and CEO; and Mitch Reback, Chief Financial Officer. Before we begin, we have a couple of reminders. Our earnings release is available on our website at investor.sweetgreen.com.

During this call, we will be making comments of a forward-looking nature. Actual results may differ materially from those expressed or implied as a result of various risks and uncertainties. For more information about some of these risks, please review the company's SEC filings, including the section titled Risk Factors in our latest annual report on Form 10-K filing and subsequently filed quarterly report on Form 10-Q. These forward-looking statements are based on information as of today, and we assume no obligation to publicly update or revise our forward-looking statements.

Additionally, we will be discussing certain non-GAAP financial measures, which are in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of these items to the nearest U.S. GAAP measure can be found in this afternoon's press release available on our IR website.

With that, it's my pleasure to turn the call over to Jonathan to kick things off.

Jonathan Neman

Thank you, Rebecca. And good afternoon, everyone. As we near our first anniversary as a public company, I want to begin by offering my gratitude to our incredible team members who power our mission of building healthier communities by connecting people to real food, adding the Sweet touch with every customer interaction.

For the quarter, we reported sales of $124 million, representing 29% year-over-year growth and same-store sales growth of 6%. We opened 10 restaurants in the quarter. Total digital sales represented 60% of our total Q3 revenue, with approximately 2/3 of those sales coming via our own digital channels. AUVs were $2.9 million and restaurant-level margins were 16% for the quarter. Our adjusted EBITDA loss was $6.8 million in the third quarter, narrowing from a loss of $14.1 million this time last year. That figure has improved each quarter this year, and we continue to demonstrate improvement on our path to profitability.