Fresh fast-casual chain Sweetgreen careened higher Friday after reporting first-quarter earnings and lifting its outlook.  A number of analysts raised their price targets on SG stock after results. Sweetgreen is the fastest-riser this year among IBD’s 27-stock restaurant group.

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Sweetgreen (SG) reported a loss of 23 cents per share, narrowed from 30 cents per share last year. Revenue for the salad and bowl-style meal server leapt 26% to $157.9 million.

Results fell short of FactSet analysts expectations for an 18 cent-per-share loss, but topped views for $152 million in revenue.

Same-store sales rose 5%, ahead of views for 3.7% growth. Sweetgreen noted that its protein plates are seeing strong demand at dinner. The company is also rolling out additional menu items, including steak.

Sweetgreen lifted its 2024 revenue guidance to range between $660 million and $675 million, up from its prior outlook of $655 million to $670 million. Analysts estimate full-year sales jump 15% to $671.6 million.

The company raised its comparable sales forecast to 4% to 6% growth, compared to its prior guidance of a 3% to 5% increase.

Starting next year, Sweetgreen expects to return to a new unit growth rate of 15% to 20% per year.

JPMorgan Friday morning said the quarterly results inspire confidence in Sweetgreen’s brand momentum, noting the revenue beat “reaffirms this standing as the company steadily rebuilds credibility,” the Fly reported. JPMorgan lifted its price target to $30 from $28 and kept an overweight rating on the shares.

TD Cowen and Citi also modestly raised their price targets on Sweetgreen stock. Both firms have a neutral or hold rating on the shares.

SG Stock

SG stock vaulted 36% early Friday, on track for a straight week of gains.

Shares are trading at their highest level since April 2022.

Sweetgreen — a MarketSurge Growth 250 stock  — soared 108.5% so far this year through Thursday, marking the largest gain in the Retail-Restaurants industry group. CAVA Group (CAVA) ranks second with a 75.4% gain through Thursday, followed by Wingstop (WING) with a 55% advance. The group ranks a strong No. 12 among the 197 industries tracked by IBD.

You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison

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