Sweetgreen (SG) investor relations material

Operational transformation and menu innovation

• Two quarters into a transformation plan focused on operational standards, throughput, and hospitality, with about two-thirds of restaurants meeting new standards; further improvements are ongoing.

• Menu innovation includes the national launch of Wraps, designed to increase visit frequency and attract new customers, with operational learnings ensuring scalability.

• Portion sizes were increased in response to customer feedback, leading to reduced complaints and improved perception.

• Pipeline development for new sides, beverages, and desserts is underway, leveraging a stage-gate innovation process.

• Focus on optimizing both digital and in-store experiences, especially during peak hours, to improve throughput and hospitality.

Pricing, value perception, and loyalty

• Price-value perception is a key barrier; a new menu price architecture is being tested in Q2 to improve transparency and value, especially for Create Your Own items.

• Loyalty program revamped to a points-based system, enabling personalized offers and successful re-engagement of lapsed customers through initiatives like Craving of the Month.

• Wraps introduced at accessible price points ($10.95–$13.95) to broaden appeal and drive incremental traffic.

• Marketing efforts are increasingly social-first, with influencer partnerships driving awareness and trial, especially among younger consumers.

Financial discipline and development strategy

• Margin improvement initiatives include reducing waste via suggestive ordering tools, supply chain efficiencies, and labor optimization, with new systems expected to launch in Q3.

• New restaurant development is paced to ensure strong unit economics, targeting 40%+ two-year cash-on-cash returns before accelerating growth.

• Sweetlane digital drive-throughs are expanding in suburban markets where economics are favorable.

• Infinite Kitchen technology will be included in about 50% of new builds, contingent on high average unit volumes and cost efficiencies from new partnerships.

• G&A expenses are expected to decline in 2026 and be leveraged further as the company grows.