Sweetgreen (SG) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue was $679.5 million, with same-store sales down 7.9% and persistent traffic pressure.

• Q4 2025 revenue declined 3.5% year-over-year to $155.2 million, driven by an 11.5% decrease in same-store sales and a 13.3% drop in traffic and mix.

• Net loss widened to $49.7 million for Q4 and $134.1 million for the year, with negative margins and lower restaurant-level profitability.

• 35 net new restaurants opened in FY25, ending the year with 281 locations; restaurant-level margin was 15.2%.

• Transformation plan focuses on operational excellence, menu innovation, digital engagement, brand relevance, and disciplined investment.

Financial highlights

• Q4 restaurant-level margin dropped to 10.4% from 17.4% last year; full year margin was 15.2%.

• Adjusted EBITDA loss was $11 million for FY25 and $13.3 million for Q4, both down from prior year.

• Digital revenue mix increased to 65.1% in Q4 and 61.8% for the year.

• Ended Q4 with $89.2 million in cash; $100 million in cash proceeds received from the sale of Spyce at the start of 2026.

• Food, beverage, and packaging costs rose to 29.2% of revenue in Q4, up 180 basis points year-over-year.

Outlook and guidance

• 2026 same-store sales expected to decline between 2% and 4%, with trends improving as comparisons ease.

• Restaurant-level margin guidance for 2026 is 14.2%-14.7%; Adjusted EBITDA expected between $1 million and $6 million.

• Plan to open about 15 net new restaurants in 2026, nearly half with Infinite Kitchen technology; entering two new markets.

• Wraps menu innovation being tested, with potential expansion in mid-2026 if criteria are met.