Sweetgreen, Inc. Earnings Recaps
Q2 2026
Aug 8, 2026
Sweetgreen shares dropped 11.5% following the quarter as investors reacted negatively to a sharper-than-expected deceleration in comparable restaurant sales and ongoing margin pressure, compounded by a cautious outlook that incorporated uncertainties from recent produce-related health incidents.
Key takeaways
- Comparable restaurant sales declined 6.2%, signaling continued traffic weakness despite sequential monthly improvement.
- Restaurant-level profit margin contracted to 13.1%, reflecting margin compression amid operational challenges.
- Adjusted EBITDA showed a slight loss of $0.2 million, indicating the business is still struggling to return to profitability.
- Management highlighted operational improvements and new initiatives like wraps to drive frequency, but these have yet to offset broader sales declines.
- The outlook was tempered due to potential impacts from external supply issues, including a cyclospora outbreak (affecting the category) and a jalapeño recall, adding uncertainty to future performance.
Q1 2026
May 11, 2026
Shares declined 1.9% following the quarter, reflecting investor disappointment with the significant comparable sales decline and ongoing margin pressure amid a challenging operating environment, despite early signs of operational improvements.
Key takeaways
- Revenue totaled $161.5 million, while comparable sales fell 12.8%, indicating persistent demand softness.
- Restaurant-level margin contracted to 10%, and the company recorded an adjusted EBITDA loss of $8.1 million.
- The quarter was affected by difficult prior-year comparisons, weather headwinds, and transformation-related execution challenges.
- Early operational improvements were noted, including better throughput, ingredient availability, and reduced quality complaints.
- The national rollout of the new Wraps platform is underway, with initial consumer response positive, but wide-scale impact remains forthcoming.
Q3 2025
Nov 7, 2025
Sweetgreen reported Q3 2025 sales of $172.4 million, with a notable decline in same-store sales, as the company navigates operational challenges and focuses on a comprehensive transformation strategy.
Key takeaways
- Same-store sales fell 9.5%, primarily due to weakened demand in the Northeast and Los Angeles markets.
- Restaurant level margin was reported at 13.1%, while adjusted EBITDA reflected a loss of $4.4 million.
- Initiatives under the "Sweet Growth Transformation Plan" include enhancing operational excellence and finalizing menu innovations to better engage customers.
- Improvements in operational metrics were observed, with about 60% of restaurants now meeting internal performance standards.
- Upcoming marketing campaigns will focus on brand relevance, particularly in challenged markets like New York, and will spotlight the quality of ingredients used in menu offerings.