Sweetgreen Inc

Latest Results (19.05.2026):

Sweetgreen, Inc.'s third fiscal quarter ended September 28, 2025 showed broadly flat revenue but worsening traffic and profitability: Q3 revenue was $172.4 million (down 0.6% year‑over‑year), Same‑Store Sales fell (9.5)% with traffic down ~11.7%, and the company reported a net loss of $(36.1) million. Management updated FY2025 guidance and emphasized its Infinite Kitchen strategy and the Spyce sale/partnership with Wonder as levers to improve efficiency and margins.

Revenue and Sales

Q3 2025 revenue: $172.4M, down 0.6% YoY. Comparable restaurant revenue decreased by $16.2M; Same‑Store Sales Change (as adjusted) was (9.5)% versus +5.6% in Q3 2024. Traffic fell ~11.7%, partly offset by a 2.2% benefit from price increases and $15.9M incremental revenue from recent restaurant openings.

Profitability and Margins

Loss from operations was $(36.3)M, a margin of (21.0)% (vs (12.2)% a year ago). Restaurant‑Level Profit was $22.5M (13.1% margin), down ~700 basis points YoY. Net loss was $(36.1)M, or $(0.31) per share (vs $(20.8)M, $(0.18) in Q3 2024).

Adjusted EBITDA

Adjusted EBITDA was $(4.4)M in Q3 (Adjusted EBITDA margin (2.5)%) versus $6.8M (3.9%) in the prior‑year quarter, driven primarily by lower Restaurant‑Level Profit and higher non‑restaurant charges (impairments, disposals).

Cost Pressures and Drivers

Higher food costs (notably increased chicken and tofu portions), elevated packaging costs from tariffs/duties, a one‑time write‑off of discontinued materials, increased restaurant advertising, and impairment/closure costs (four locations) materially pressured margins.

Digital, AUV and Unit Growth

Total digital revenue was 61.8% of sales and Owned Digital 35.3%. Average Unit Volume (AUV) was ~$2.77M (vs $2.91M prior year). Net new restaurant openings in Q3: 6 (versus 5 in prior year period); company now plans 37 net new openings for FY2025 (18 with Infinite Kitchen).

Balance Sheet and Cash Flow

Cash and cash equivalents were $129.97M as of Sept 28, 2025 (cash & restricted cash $134.11M). Total assets $824.8M and total stockholders’ equity $393.3M. Operating cash use YTD and elevated capital spend: purchase of property & equipment of $76.1M in the 39 weeks ended Sept 28, 2025.

Outlook and Guidance

Updated FY2025 guidance: revenue $682M–$688M; Same‑Store Sales Change (8.5)% to (7.7)%; Restaurant‑Level Profit Margin 14.5%–15.0%; Adjusted EBITDA between $(13)M and $(10)M; 37 net new openings in FY2025 and 15–20 openings expected in FY2026.

Strategic Actions

Sweetgreen highlighted the sale of Spyce and a partnership with Wonder to scale its Infinite Kitchen automation platform, aiming to lower operating costs and strengthen the balance sheet while retaining access to the technology.