0001628280-26-012520
SEC filingSweetgreen posted 0.4% revenue growth to $679.5M as 35 net new openings were offset by -7.9% same-store sales, widening net loss 48% amid cost deleverage.
Sweetgreen, Inc. describes itself as a mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale. Its vision is to be as ubiquitous as traditional fast food, but with the transparency and quality that consumers increasingly expect. As of December 28, 2025, the company owned and operated 281 restaurants in 24 states and Washington, D.C.
The Business section does not disclose any reporting segments. The company operates as a single segment.
Sweetgreen's core menu consists of a curated set of signature items offered year-round across all locations, designed to deliver consistent quality. Guests may also create custom salads, bowls, or plates from a broad assortment of ingredients and signature dressings. The company supplements core offerings with seasonal and limited-time items. Through owned digital channels, it offers exclusive menu items and curated collections. The company protects its intellectual property through trademarks including "Sweetgreen," "SG," "SG Outpost," "Sweetgreen Outpost," and "SweetPass."
Sweetgreen operates its own restaurants and utilizes multiple digital channels, including delivery and take-out platforms. The company does not disclose any key customer concentration in this section.
Sweetgreen faces significant competition from restaurants in the fast-casual dining and traditional fast-food segments. Competitors include national and regional fast-casual chains, restaurants emphasizing clean ingredients and health-conscious dining, and traditional quick-service restaurants. The company also competes with delivery kitchens, food aggregators, and third-party delivery marketplaces such as DoorDash, Grubhub, and Uber Eats, as well as grocery stores focusing on freshly prepared or organic foods. The delivery marketplaces retain customer data for Sweetgreen orders and may use that information to promote other restaurants.
Sweetgreen's strategic framework is the Sweet Growth Transformation Plan, centered on five priorities: (1) Operational Excellence – drive consistent execution across restaurants; (2) Food Quality + Menu Innovation – differentiate through high-quality ingredients and scratch cooking; (3) Personalized Experience – increase customer frequency and average check through targeted digital engagement; (4) Brand Relevance – attract new guests by amplifying what makes Sweetgreen distinctive; and (5) Disciplined Profitable Investment – deliver sustainable growth by prioritizing returns and cost discipline.
As of December 28, 2025, Sweetgreen had 6,486 employees, with 248 at the Sweetgreen Support Center and 6,238 in restaurants. The company offers competitive wages and benefits including medical, dental, vision insurance, paid time off, paid parental leave, and equity incentives for Head Coaches. In 2025, Forbes included Sweetgreen in America's Best Large Employers and TIME recognized it as one of America's Best Midsized Companies. During fiscal year 2025, 52% of open restaurant leadership roles were filled with promotions of existing employees.
Revenue increased 0.4% to $679.5M in fiscal 2025 versus 2024, driven by $58.2M incremental contribution from 60 net new restaurants opened across the two years. This was more than offset by a $53.0M decline in the Comparable Restaurant Base, producing a -7.9% same-store sales change (versus +6.2% in 2024). Traffic fell 10.4%, only partially mitigated by 2.5% menu price increases and the transition from Sweetpass+ to SG Rewards. Average unit volume declined 8.4% to $2,677.
Restaurant operating costs rose 5.9% to $575.9M, with food, beverage & packaging up 4.5% (28.5% of revenue) due to higher protein usage, waste, and tariff-related costs. Labor deleveraged to 28.9% of revenue. Operating expenses increased 6.2%, led by higher pre-opening, impairment ($12.1M versus $2.2M), and restructuring charges. Net loss widened 48.3% to $134.1M.
No reportable segments are disclosed. Revenue mix shifted toward digital channels, with Total Digital Revenue Percentage rising to 61.8% (from 56.4%) and Owned Digital Revenue Percentage to 34.6% (from 30.4%), aided by the new loyalty program. In-Store Non-Digital sales declined as remote/hybrid work patterns persisted.
For fiscal 2026 the company expects approximately 15 net new restaurant openings, roughly half featuring Infinite Kitchen units. Same-store sales are guided to (4.0)% to (2.0)%. Management continues to focus on cost discipline under the Sweet Growth Transformation Plan and sourcing strategies to mitigate tariff impacts on food costs and equipment.
As of December 28, 2025, Sweetgreen held $89.2 million in cash and cash equivalents, a significant decrease from $214.8 million at the prior year-end. Restricted cash, tied to letters of credit for workers' compensation insurance, stood at $4.2 million. The company maintains a debt-free capital structure, with no outstanding borrowings; its prior $45.0 million revolving credit facility with EagleBank expired in December 2024 and was not renewed. Total stockholders' equity was $356.1 million, down from $446.1 million, driven by a net loss of $134.1 million and an accumulated deficit of $1.0 billion. The balance sheet also reflects $7.2 million in gift card and loyalty liabilities, with the loyalty program (SG Rewards) launching in fiscal 2025. Assets held for sale of $25.4 million and related liabilities of $1.1 million are presented separately, reflecting the pending sale of the Spyce business unit.
The company's primary contractual obligations stem from operating leases for its 281 restaurant locations and corporate offices. Total future minimum lease payments amount to $459.8 million, with $63.5 million due within one year, $130.8 million due in years two and three, and $265.5 million due thereafter. The weighted-average remaining lease term is 7.16 years, with a weighted-average discount rate of 6.88%. An additional $14.6 million in lease commitments exist for non-cancelable leases that have not yet commenced. The notes also disclose purchase obligations for restaurant supplies, though no specific dollar amount is quantified beyond stating they are due within twelve months. Contingent consideration related to the Spyce acquisition had a remaining fair value of $7.0 million, classified in other current liabilities.
Sweetgreen does not pay dividends and has no share repurchase program. Capital expenditures for property and equipment totaled $106.5 million in fiscal 2025, up from $84.5 million in the prior year, representing 15.7% of revenue. The company also spent $7.8 million on intangible assets. No debt was issued or repaid during the period. Financing activities provided $2.9 million, primarily from stock option exercises ($3.1 million), partially offset by tax withholding payments on share settlements. The company temporarily paused its 401(k) matching contribution in the fourth quarter of 2022, and this pause remained in effect.
The company operates as a single operating and reportable segment, with the chief executive officer serving as the chief operating decision maker (CODM). Revenue is disaggregated into three channels: Owned Digital Channels ($234.9 million), In-Store Non-Digital ($259.7 million), and Marketplace Revenue ($184.9 million). Geographic concentration risk is noted, with approximately 24% of revenue generated from the New York City metropolitan area. No further segment-level profitability metrics are disclosed in the notes.
Sweetgreen faces intense competition from fast-casual and quick-service restaurants, many with greater resources, as well as from delivery marketplaces like DoorDash and Uber Eats that retain customer data. This is compounded by a difficult macroeconomic environment where inflation, high interest rates, and tariffs have reduced consumer discretionary spending, directly contributing to a decrease in Same-Store Sales Change in 2025. The company's ability to pass through cost increases via menu price hikes is constrained by customer price sensitivity, risking further demand deterioration.
Net losses widened significantly to $(134.1) million in fiscal year 2025 from $(90.4) million in the prior year, with expectations of continued losses. The growth strategy, which includes opening approximately 15 Net New Restaurants in fiscal year 2026 and deploying new formats (drive-up, Infinite Kitchen-enabled), is capital-intensive and subject to delays from permitting, construction, and supply chain issues. The company's expansion into new, less urban markets presents risks of higher costs and lower brand recognition, while new locations may cannibalize sales from existing restaurants in concentrated urban areas.
A critical new risk is the December 2025 sale of the Infinite Kitchen technology to Wonder. Sweetgreen is now entirely dependent on Wonder for the supply, commissioning, support, and maintenance of the Infinite Kitchen units in its 30 automated restaurants. Any malfunction, supply disruption, or failure by Wonder to perform could force store closures and derail automation-driven efficiency plans. More broadly, the company's digital channels rely heavily on third parties like DoorDash for Native Delivery and Amazon Web Services for cloud infrastructure, with past outages (e.g., a major AWS outage in Q4 2021) having materially disrupted operations.
Labor costs are a significant and growing pressure point, highlighted by California's $20.00 per hour minimum wage for certain restaurant chains effective April 2024, with a state council empowered to raise it further. Compliance with complex fair workweek and just-cause termination laws in markets like New York City adds operational burden and legal risk, with the company currently under investigation for violations. On the supply chain side, tariffs on imported packaging (primarily from China) and ingredients had a 27 basis point impact in fiscal year 2025, a cost expected to persist. Extreme weather events, exemplified by the January 2025 Los Angeles fires that caused temporary closures and lingering traffic impacts, pose an ongoing threat to urban-centric operations.
The company remains an attractive target for cyberattacks, having experienced credential-stuffing incidents in early 2024 and a vendor DDoS attack. The evolving patchwork of state data privacy laws, including the CCPA, increases compliance complexity and costs, while also threatening the effectiveness of targeted advertising. Litigation risk is present from both employment-related class actions and intellectual property disputes, such as the settled lawsuit with Chipotle over the use of 'Chipotle' in a menu item name.
Operating cash flow (CFO) of $89.2M in FY2025 exceeded net income of -$33.5M, indicating strong cash generation relative to earnings. The improvement from $62.5M in FY2024 was driven by better working capital management and reduced losses. Capital expenditures (capex) of $107.5M increased from $93.0M, reflecting continued investment in new restaurants and technology. Free cash flow (FCF) remained negative at -$18.3M, though improved from -$30.5M in FY2024. The company did not pay dividends or repurchase shares. Financing cash flow of -$97.3M primarily reflects debt repayments and lease payments. Overall, cash flow quality is improving but still constrained by high capex requirements.