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Sep 28, 2025
Sweetgreen Q3 2025 Earnings Report
Sweetgreen reported its financial results for the third fiscal quarter ended September 28, 2025, showing a slight revenue decrease and increased net loss compared to the prior year.
Key Takeaways
Sweetgreen experienced a challenging third quarter in fiscal year 2025, with total revenue decreasing by 0.6% to $172.4 million and net loss widening to $(36.1) million. The decline was primarily driven by a negative same-store sales change of 9.5%, reflecting decreased traffic and product mix, partially offset by new restaurant openings. The company's Restaurant-Level Profit Margin also decreased significantly.
Total revenue for Q3 2025 was $172.4 million, a 0.6% decrease from the prior year.
Net loss for the quarter increased to $(36.1) million, compared to $(20.8) million in Q3 2024.
Same-Store Sales Change was a negative 9.5%, primarily due to an 11.7% decrease in traffic and product mix.
Restaurant-Level Profit Margin decreased by approximately 700 basis points to 13.1%.
Forward Guidance
Sweetgreen updated its fiscal year 2025 guidance and provided an outlook for fiscal year 2026, focusing on new restaurant openings, including those with Infinite Kitchen units.
Positive Outlook
- Expects 15-20 Net New Restaurant Openings in fiscal year 2026.
- About half of the new restaurant openings in fiscal year 2026 will feature Infinite Kitchen units.
- Strategic decision to sell Spyce and partner with Wonder is expected to scale more efficiently.
- Infinite Kitchen technology aims to lower operating costs and strengthen the balance sheet.
- Focus on operational excellence, menu innovation, and disciplined growth to achieve sustained, profitable growth.
Challenges Ahead
- Uncertainty regarding reconciliation of Restaurant-Level Profit Margin and Adjusted EBITDA to GAAP measures for future guidance.
- Challenging macro backdrop continues to impact consumer spending.
- Decline in traffic and product mix observed in the current quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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