Sweetgreen, Inc.

second quarter was 22.5% compared to 20.4% a year ago. This is more than a 200 basis point improvement from the second quarter of 2023. Margins were strong across all regions and age cohorts. Year to date, restaurant level profit margin is 20.5%. Restaurant level profit for the second quarter was 41.5 million, a more than 30% increase year over year. For a reconciliation of restaurant-level margin to comparable gap figures, please refer to the earnings release. In the second quarter of 2024, we opened four restaurants, including restaurants in Washington, D.C., Chicago, Morristown, New Jersey, and Salem, New Hampshire, a new market for us. We ended the quarter with a total of 231 restaurants. Our infinite kitchens continue to deliver on our financial, operational, and customer service metrics. Naperville just crossed its one year anniversary in May with 2.8 million in sales. For the second quarter, the restaurant level margin was 31.3%. In its first year, team member turnover was around 45% less than what we see in a classic restaurant at a similar stage. Our Huntington Beach IK is six months old and following a similar trajectory. Our Penn Plaza retrofit, open for a few weeks, has shown strong performance. On its second day, the Infinite Kitchen produced nearly 200 bowls in 30 minutes with 100% on-time reliability and has the potential to reach 500 bowls per hour. As Jonathan mentioned, Penn Plaza offers the fastest way to get sweet green with an average order completion time of just under three and a half minutes. For 2024, we are on track to open between 24 and 26 new restaurants, seven of which will contain the Infinite Kitchen. These seven restaurants are scheduled to be opened in Q3 and Q4 of 2024, one of which was opened this week in Fashion Island in Newport Beach, California. Food, beverage, and packaging costs were 27% of revenue for the quarter, flat year over year. Labor-related expenses were 27% of revenue for the second quarter, a 200 basis point improvement year over year. While we experienced wage rate increases, this was more than offset with improvements to labor optimization. Occupancy and related expenses were 8% of revenue, a 100 basis point improvement year over year. General and administrative expense was 39.2 million or 21% of revenue for the second quarter of 2024 as compared to 40.4 million or 26% of revenue in the prior year period. The decrease in general and administrative expenses was primarily due to a 3.6 million decrease in stock-based compensation expense, which was partially offset by an increase in our investment in advertising. net loss for the second quarter of fiscal 2024 was 14.5 million as compared to a loss of 27.3 million in the prior year period. The decrease in net loss is primarily due to a 10.4 million increase in our restaurant-level profit and a 4.5 million decrease in restructuring, a 1.2 million decrease in pre-opening, and a 1.1 million decrease in general and administrative expenses described above. These decreases were partially offset by an increase in depreciation and amortization expense, primarily associated with an increase in restaurants, as well as an increase in other expenses related to the change in fair value of our contingent consideration. Adjusted EBITDA, which excludes stock-based compensation and certain other adjustments, was $12.4 million for the second quarter, an improvement of $9.1 million from the second quarter of 2023. We ended the quarter with a cash balance of $245 million. During the first six months of 2024, we generated a positive operating cash flow of $22.5 million. Now turning to guidance. For the fiscal year 2024, the raise in guidance reflects our strong performance in the first half of the year. We remain cautious for the second half of the year, given what we are reading about the uncertain U.S. economic backdrop. Additionally, our guidance reflects the retrofitting of two high volume restaurants with the infinite kitchen, including Willis Tower in Chicago. 24 to 26 net new restaurant openings, revenue ranging from 670 to 680 million, same store sales growth between 5 and 7%, restaurant level margins between 19 and 20%, and adjusted EBITDA between $16 and $19 million. As we shared before, we remain committed to disciplined, capital-efficient growth and driving profitability so that we can accelerate the sweet green flywheel. We remain focused on building our brand, culinary innovation, leveraging our unique supply chain, and delivering operational excellence. With this focus, we believe we are well positioned to deliver long-term growth for our stakeholders. With that, I'll turn the call back to the operator to start Q&A.

Thank you.

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