Business
Sweetgreen, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
LOS ANGELES, February 26, 2026--Sweetgreen, Inc. (NYSE: SG) (the "Company"), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its fourth fiscal quarter and fiscal year ended December 28, 2025.
About this update from Sweetgreen, Inc.
LOS ANGELES, February 26, 2026 --( BUSINESS WIRE )--Sweetgreen, Inc. (NYSE: SG) (the "Company"), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its fourth fiscal quarter and fiscal year ended December 28, 2025. Fourth Quarter 2025 Financial Highlights For the fourth quarter of fiscal year 2025, compared to the fourth quarter of fiscal year 2024: Full Year Fiscal 2025 Financial Highlights For fiscal year 2025 compared to fiscal year 2024: "Our 2025 results fell short of our expectations. In response, we are moving with urgency through the ‘Sweet Growth Transformation Plan’ to strengthen the core of the business. We are tightening our operations, raising our culinary standards, and setting the business up to grow in the right way. As we continue to reinforce the foundations across all areas of the business we know that menu innovation is a key part of that story," said Jonathan Neman, Co-Founder and Chief Executive Officer of Sweetgreen. "We are currently testing wraps across select New York, Midwest, and California restaurants. Prices start at $10.95 at certain New York City locations, with the full lineup priced below $15 across all markets when ordering in-store and for pickup. If performance meets our stage-gate criteria, we expect to expand the platform in mid-2026." Results for the Fourth Quarter Ended December 28, 2025: Total revenue in the fourth quarter of 2025 was $155.2 million, a decrease of 3.5% versus the prior year period. This decrease was primarily due to a decrease in Comparable Restaurant Base revenue of $18.1 million, resulting in a negative Same-Store Sales Change of 11.5%, reflecting a 13.3% decrease in traffic and mix, partially offset by a 1.8% benefit from menu price increases that were implemented subsequent to the thirteen weeks ended December 29, 2024. Traffic softness reflected a more selective consumer environment and the transition from our former Sweetpass+ program to SG Rewards. While the loyalty transition created near-term headwinds, it positions us to drive more sustainable engagement over time. This decrease in revenue was partially offset by an increase of $14.1 million of incremental revenue associated with 45 Net New Restaurant Openings during or subsequent to the fourth quarter of fiscal year 2024. These results reinforce the urgency of the "Sweet Growth Transformation Plan", which is focused on strengthening operational execution, sharpening value perception, and improving restaurant-level economics. Our loss from operations margin was (31.0)% for the fourth quarter of 2025 versus (19.5)% in the prior year period. Restaurant-Level Profit Margin was 10.4%, a decrease of nearly 700 basis points versus the prior year period, due to a negative Same-Store Sales Change of 11.5%, higher ingredient usage and waste, including increased protein portions, increased restaurant-level advertising spend, as well as higher packaging costs related to recently imposed tariffs and duties. General and administrative expense was $39.7 million, or 25.6% of revenue for the fourth quarter of 2025, as compared to $37.1 million, or 23.1% of revenue in the prior year period. The increase in general and administrative expense was primarily due to an increase in stock-based compensation expense as a result of stock modifications recognized during the current period. Net loss for the fourth quarter of 2025 was $(49.7) million, as compared to $(29.0) million in the prior year period. The increase in net loss was primarily due to an $11.7 million decrease in our Restaurant-Level Profit, an increase in other expense due to transaction costs related to the Spyce sale that closed subsequent to 2025 year end, an increase in pre-opening costs due to the 15 Net New Restaurant Openings in the current year period versus 10 in the prior year period, as well as the increase in general and administrative expense, as described above. "Sweet Growth Transformation Plan" The Sweet Growth Transformation Plan is designed to unlock the full potential of the Sweetgreen brand. It strengthens our operational foundation, enhances guest experience, and builds a more durable financial model. The framework centers on five strategic priorities: Spyce Sale On December 29, 2025, subsequent to fiscal year end, we completed the sale of Spyce to Wonder for total consideration of $186.4 million, made up of cash of $100 million and Series C preferred stock of Wonder with an implied value of $86.4 million. Sweetgreen will continue to use and deploy Infinite Kitchen technology across its restaurants pursuant to a supply and services agreement and a licensing agreement, both with Wonder. 2026 Outlook For fiscal year 2026, we are anticipating the following: We have not reconciled our expectations as to Restaurant-Level Profit Margin and Adjusted EBITDA to their most directly comparable GAAP measures as a result of uncertainty regarding, and the potential variability of, reconciling items. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results computed in accordance with GAAP. Conference Call Sweetgreen will host a conference call to discuss its financial results and financial outlook today, February 26, 2026, at 2:00 p.m. Pacific Time. A live webcast of the call can be accessed from Sweetgreen’s Investor Relations website at investor.sweetgreen.com . An archived version of the webcast will be available from the same website after the call. Forward-Looking Statements This press release and the related conference call, webcast and presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may relate to, but are not limited to, statements regarding our financial outlook for the fiscal year 2026, including our expectations regarding the number of Net New Restaurant Openings, Same-Store Sales Change, Restaurant-Level Profit Margin and Adjusted EBITDA; our plans, priorities, initiatives and strategies, including with respect to SG Rewards, the execution and expected results of our Sweet Growth Transformation Plan, our expected geographic expansion of wraps products, and our continued use and deployment of Infinite Kitchen technology; customer behavior; and our expectations regarding our costs and expenses, including due to the effects of tariffs, as well as any future pricing or other actions taken in an effort to mitigate our costs and expenses. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words or phrases such as "anticipate," "are confident that," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release and the related conference call may not occur and actual results could differ materially from those described in the forward-looking statements. These risks and uncertainties include our ability to compete effectively; uncertainties regarding changes in economic conditions and macroeconomic, geopolitical, and other major events, which may include pandemics and disease outbreaks, and the customer behavior trends they drive; our ability to open new restaurants; our ability to effectively identify and secure appropriate sites for new restaurants; our ability to expand into new markets and the risks such expansion presents; the impact of severe weather conditions or natural disasters on our restaurant sales and results of operations; the profitability of new restaurants we may open, and the impact of any such openings on sales at our existing restaurants; our ability to preserve the value of our brand; food safety and foodborne illness concerns; our ability to achieve profitability in the future; our ability to purchase, deploy, and maintain the proprietary kitchen automation technology, known as the Infinite Kitchen, in a timely and cost-effective manner; the effect on our business of increases in labor costs, labor shortages, and difficulties in hiring, training, rewarding and retaining a qualified workforce; our ability to identify, complete, and integrate acquisitions; the effect on our business of governmental regulation and changes in employment laws; the effect on our business of expenses and potential management distraction associated with litigation; potential privacy and cybersecurity incidents, the effect on our business of restrictions and costs imposed by privacy, data protection, and data security laws, regulations, and industry standards; and our ability to enforce our rights in our intellectual property. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company's expectations is included in our SEC reports, including in our Annual Report on Form 10-K filed for the fiscal year ended December 29, 2024 and subsequently filed quarterly reports on Form 10-Q. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise. Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov . Information contained on, or that is referenced or can be accessed through, our website does not constitute part of this document and inclusions of any website addresses herein are inactive textual references only. Glossary Non-GAAP Financial Measures In addition to our consolidated financial statements, which are presented in accordance with GAAP, we present certain non-GAAP financial measures, including Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. We believe these measures are useful to investors and others in evaluating our performance because these measures: We define Restaurant-Level Profit as loss from operations adjusted to exclude general and administrative expense, depreciation and amortization, pre-opening costs, loss on disposal of property and equipment, and, in certain periods, impairment and closure costs and restructuring charges. Restaurant-Level Profit Margin is Restaurant-Level Profit as a percentage of revenue. As it excludes general and administrative expense, which is primarily attributable to our corporate headquarters, which we refer to as our Sweetgreen Support Center, we evaluate Restaurant-Level Profit and Restaurant-Level Profit Margin as a measure of profitability of our restaurants. We define Adjusted EBITDA as net loss adjusted to exclude income tax expense (benefit), interest income, interest expense, depreciation and amortization, stock-based compensation expense, loss on disposal of property and equipment, other (income) expense, our enterprise resource planning system ("ERP") implementation and related costs, legal settlements, and, in certain periods, impairment and closure costs, restructuring charges, employer portion of founder performance stock unit payroll taxes and other non-recurring expenses. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue. Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. In particular, Restaurant-Level Profit and Adjusted EBITDA should not be viewed as substitutes for, or superior to, loss from operations or net loss prepared in accordance with GAAP as a measure of profitability. Some of these limitations are: Because of these limitations, you should consider Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial performance measures, loss from operations, net loss, and our other GAAP results. About Sweetgreen Sweetgreen (NYSE: SG) is on a mission to build healthier communities by connecting people to real food. Sweetgreen sources the best quality ingredients from farmers and suppliers they trust to cook food from scratch that is both delicious and nourishing. They plant roots in each community by building a transparent supply chain, investing in local farmers and growers, and enhancing the total experience with innovative technology. Since opening its first 560-square-foot location in 2007, Sweetgreen has scaled to over 280 locations across the United States, and their vision is to lead the next generation of restaurants and lifestyle brands built on quality, community and innovation. To learn more about Sweetgreen, its menu, and its loyalty program, visit www.Sweetgreen.com . Follow @Sweetgreen on Instagram , Facebook and X . View source version on businesswire.com: https://www.businesswire.com/news/home/20260226803934/en/ Contacts Sweetgreen Contact, Rebecca Nounou Investor Relations: [email protected] Media: [email protected]