Sweetgreen (SG) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue reached $679.5 million, with comparable sales down 7.9% year-over-year and adjusted EBITDA at a loss of $11 million.

• Fourth quarter sales were $155.2 million, down 3.5% year-over-year, with comparable sales down 11.5% and restaurant-level margin at 10.4%.

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

• Opened 35 net new restaurants in 2025, ending the year with 281 locations, including 30 Infinite Kitchen sites.

• Launched the Sweet Growth Transformation Plan focused on operational excellence, menu innovation, digital engagement, brand relevance, and disciplined investment.

Financial highlights

• Restaurant-level margin for the year was 15.2%; Q4 margin dropped to 10.4% from 17.4% last year.

• Adjusted EBITDA loss of $13.3 million in Q4 and $11 million for the year, both down from prior year.

• Digital revenue mix increased to 65.1% in Q4 and 61.8% for the year, with owned digital channels also rising.

• Average unit volume declined to $2.68 million from $2.92 million year-over-year.

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

Outlook and guidance

• Fiscal 2026 same-store sales expected to decline 2%-4%, with trends improving as the year progresses.

• 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, and enter two new markets.

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