(SG) begins buying and selling on the New York Inventory Change

Shares of salad chain Sweetgreen surged as a lot as 91% in its public market debut Thursday afternoon.

The inventory opened at $52 a share, giving the corporate a market worth of greater than $5.5 billion. The corporate priced its preliminary public providing at $28 a share on Wednesday night, above its marketed vary of $23 to $25 per share. Sweetgreen bought 13 million shares, elevating $364 million for the corporate.

The inventory is buying and selling on the New York Inventory Change below the image “SG.”

Based in 2006, Sweetgreen has discovered a loyal buyer base with its menu of customizable salads and heat bowls that attraction to customers on the lookout for wholesome, handy choices. The chain has additionally leaned into expertise, pushing its clients to order their salads on-line to chop down on strains inside eating places. Greater than two-thirds of its income comes from digital gross sales.

“We prefer to say we wish to construct the McDonald’s of our era,” mentioned co-founder and CEO Jonathan Neman on CNBC’s “Squawk Field.”

Within the fiscal 12 months ended Dec. 27, Sweetgreen reported a internet lack of $141.2 million on income of $220.6 million, in keeping with its prospectus. The chain’s same-store gross sales shrank 26% throughout that point after climbing 15% within the prior fiscal 12 months.

This 12 months, the chain has rebounded from pandemic lows. Identical-store gross sales have risen 21%, as of Sept. 26. Its losses narrowed to $86.9 million from a lack of $100.2 million within the year-ago interval.

In August, Sweetgreen acquired Spyce, a Boston restaurant firm that made a reputation for itself with robotic restaurant tech. 

Sweetgreen operates 140 eating places throughout 13 states and Washington, with plans to double its restaurant footprint throughout the subsequent 5 years. 

A string of different restaurant chains have made their public market debuts this 12 months with combined outcomes. First Watch Restaurant Group’s inventory has fallen 9% since its October IPO, whereas shares of espresso chain Dutch Bros have climbed 55% since its personal providing.

That is breaking information. Please test again for updates.