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Dec 28, 2025
Sweetgreen Q4 2025 Earnings Report
Sweetgreen reported fourth quarter 2025 financial results, showing a revenue decline and widened net loss amid a transition in its loyalty program.
Key Takeaways
Sweetgreen's Q4 2025 was marked by a 3.5% revenue decrease and a significant same-store sales decline of 11.5%. The company attributed the softness to a selective consumer environment and the transition from Sweetpass+ to SG Rewards. Despite these headwinds, digital revenue reached 65.1% of total sales, and the company is moving forward with its 'Sweet Growth Transformation Plan' to improve operational execution and culinary standards.
Total revenue decreased 3.5% year-over-year to $155.2 million for the fourth quarter.
Same-store sales fell by 11.5%, driven by a 13.3% decrease in traffic and mix, partially offset by price increases.
Digital channels continue to dominate, with Total Digital Revenue Percentage rising to 65.1% from 56.0% in the prior year.
The company completed the sale of Spyce to Wonder for $186.4 million subsequent to fiscal year-end to focus on its core business while retaining access to automation technology.
Forward Guidance
For fiscal year 2026, Sweetgreen expects to return to positive Adjusted EBITDA and continue its expansion with a focus on automation.
Positive Outlook
- Anticipated Adjusted EBITDA between $1.0 million and $6.0 million.
- Approximately 15 net new restaurant openings planned.
- About half of new openings will feature the 'Infinite Kitchen' automation technology.
- Expected Restaurant-Level Profit Margin between 14.2% and 14.7%.
- Expansion of the new wraps platform expected in mid-2026.
Challenges Ahead
- Same-store sales change expected to remain negative between (4.0)% and (2.0)%.
- Ongoing impact of higher packaging costs related to tariffs and duties.
- Uncertainty regarding the speed of recovery from the loyalty program transition.
- Potential variability in reconciling items for non-GAAP measures.
Historical Earnings Impact
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