Naomi Osaka-backed Sweetgreen's revenue surges ahead of NYSE listing

(Reuters) – Tennis star Naomi Osaka-backed Sweetgreen Inc’s quarterly revenue surged by nearly three-fourths, according to a filing for an initial public offering (IPO) by the salad chain that was made public on Monday.

Plant-based food companies have shot to prominence in recent years on interest from millennials and generation Z consumers who are willing to spend more on healthy and environment-friendly options.

Sweetgreen, which had confidentially filed for a listing on the New York Stock Exchange in June, reported revenue of $95.84 million in the quarter to Sept. 26. Its net loss narrowed to $36.9 million, from $86.9 million a year earlier.

The California-based company, whose other investors include T.Rowe Price, Lone Pine Capital and D1 Capital Partners, was founded in 2007 and has 140 restaurants in 13 states and Washington, D.C.

It was valued at $1.8 billion after a funding round earlier this year, according to reports here.

Plant-based retail sales in the United States soared 27% in 2020 to $7 billion, according to a report by the Good Food Institute and the Plant-Based Foods Association.

The rising interest in sustainability-focused startups has also prompted Hollywood star Jessica Alba’s Honest Co and Oprah Winfrey-backed Oatly Group AB to tap the public markets.

Plant-based burger maker Impossible Foods is looking at several ways to go public, Reuters reported in April.

Goldman Sachs & Co, J.P. Morgan, Morgan Stanley and Allen & Co are among the underwriters for Sweetgreen’s IPO.

Source: Read Full Article