Sweetgreen (SG) investor relations material

Executive summary

• Q2 revenue reached $185.6M, up 0.5% year-over-year, driven by new restaurant openings but offset by a 7.6% decline in same-store sales.

• Net loss widened to $23.2M from $14.5M year-over-year, impacted by lower restaurant profit and $5.3M in impairment charges from closures.

• Adjusted EBITDA was $6.4M (3.5% margin), down from $12.4M (6.7% margin) in the prior year.

• Nine net new restaurants opened in Q2, 14 year-to-date, bringing the total to 260 locations in 22 states and D.C.

• Leadership changes include a new Chief Commercial Officer and COO, with operational improvement initiatives underway.

Financial highlights

• Restaurant-level profit margin dropped to 18.9% from 22.5% a year ago; restaurant-level profit was $35.1M, down 15%.

• Cash and cash equivalents at quarter end were $168.5M, down from $214.8M at year-end.

• General and administrative expenses decreased 12% year-over-year, mainly due to lower stock-based compensation and management salaries.

• Impairment and closure costs rose to $5.3M, reflecting impairment of five restaurant locations.

• Average unit volume (AUV) was $2.8M, down 3.2% year-over-year.

Outlook and guidance

• FY25 guidance: at least 40 net new restaurant openings (20 with Infinite Kitchen), revenue of $700M–$715M, negative same-store sales of 6% to 4%, restaurant-level margin ~17.5%, and adjusted EBITDA of $10M–$15M.

• No price increases anticipated for the rest of the year.

• Tariffs are expected to increase new restaurant build-out and Infinite Kitchen equipment costs by 5%, with mitigation efforts underway.

• Half of the 2025 development pipeline will open in Q4.

• Management remains focused on cost optimization and supply chain strategies to offset inflation and tariff impacts.