Loading...
•
Sep 28
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%.
Sweetgreen
Sweetgreen
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.
- Discontinuation of former Sweetpass+ loyalty program and transition to new SG Rewards program impacted revenue.
- Higher protein costs, packaging costs, and increased restaurant-level advertising spend negatively impacted profit margins.