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Jun 29
Sweetgreen Q2 2025 Earnings Report
Sweetgreen announced financial results for its second fiscal quarter ended June 29, 2025, reporting a slight revenue increase but a wider net loss compared to the prior year.
Key Takeaways
Sweetgreen experienced a challenging second quarter in fiscal year 2025, with total revenue increasing marginally by 0.5% to $185.6 million. The company reported a net loss of $23.2 million, a significant increase from the $14.5 million loss in the prior year, primarily due to a decrease in Restaurant-Level Profit and increased impairment and closure costs. Despite headwinds, the company is confident in improving performance in the latter half of 2025, driven by a new loyalty program and summer menu.
Total revenue for Q2 2025 was $185.6 million, a modest 0.5% increase year-over-year, primarily driven by new restaurant openings.
Net loss widened to $23.2 million in Q2 2025, compared to a $14.5 million net loss in Q2 2024, mainly due to reduced Restaurant-Level Profit and higher impairment costs.
Same-Store Sales Change was negative 7.6%, reflecting a 10.1% decrease in traffic and product mix, partially offset by a 2.5% menu price increase.
Restaurant-Level Profit Margin decreased by 360 basis points to 18.9% due to negative same-store sales and increased advertising spend.
Sweetgreen
Sweetgreen
Forward Guidance
Sweetgreen updated its fiscal year 2025 guidance, but specific numerical targets for Restaurant-Level Profit Margin and Adjusted EBITDA were not reconciled to GAAP measures due to uncertainty.
Positive Outlook
- Early signs from the new SG Rewards loyalty program are encouraging.
- The summer menu is successfully bringing customers back more often.
- The company remains fully committed to improving execution across all restaurants.
- Management believes the financial model is strong despite current headwinds.
- Focus on delivering great guest experiences and improving consistency is expected to position Sweetgreen for scalable, sustainable growth.
Challenges Ahead
- The company is not satisfied with the Q2 2025 results.
- Macroeconomic pressures continue to be a headwind.
- The transition of the loyalty program contributed to challenging comparisons.
- Uncertainty regarding reconciling items prevents reconciliation of non-GAAP measures to GAAP.
- The factors affecting reconciliation could be material to GAAP results.