SG · Sweetgreen, Inc.

Sweetgreen's Q1 2026 results showed revenue of $161.5 million, down 2.9% year-over-year, primarily from a 12.8% same-store sales decline driven by 11.2% traffic drop due to weather impacts and prior-year Ripple Fries launch benefit, plus 2.3% mix weakness from promotions and loyalty program transition. This was partially offset by $19.2 million from 39 net new restaurants since last year, with 4 openings in the quarter. Restaurant-level profit fell to $16.2 million (10.0% margin) from $29.7 million (17.9%), reflecting higher ingredient usage, portion investments, and promotions, though mitigated by supply chain savings. Operating loss widened to $(34.3) million (-21.3% margin) from $(28.5) million (-17.2%). G&A expenses improved to $29.3 million (18.1% of revenue) from $38.3 million (23.1%), due to lower stock-based compensation and salaries. Net income swung to $125.8 million from a $25.0 million loss, propelled by a $160.6 million gain on Spyce disposal, despite higher operating losses. Adjusted EBITDA was $(8.1) million versus $0.3 million prior year. CEO Jonathan Neman highlighted execution under the Sweet Growth Transformation Plan, with Infinite Kitchen in half of planned 13 FY2026 openings, and recent nationwide Wraps launch boosting April momentum via guest acquisition. Guidance reflects caution: same-store sales (4.0)% to (2.0)%, restaurant-level margin 14.2%-14.7%, Adjusted EBITDA $1.0-$6.0 million, signaling transformation early stages amid traffic challenges but digital gains (67.2% total, 38.9% owned).