Earnings

Sweetgreen Same-Store Sales Narrow to a 6.4% Decline

The Tip Desk · November 11, 2026 · 3 min read

Revenue was $176.0 million as the company said October comparable sales turned positive on transaction growth.

Sweetgreen, Inc. (SG), the fast-casual restaurant brand, reported third-quarter revenue of $176.0 million, up 2.1% from a year earlier, as same-store sales declined 6.4% after a 9.5% drop in the year-ago quarter.

The increase in total revenue was primarily due to $13.8 million of incremental sales from 30 net new restaurant openings during or after the third quarter of fiscal 2025. Comparable restaurant base revenue fell $10.7 million. Same-store traffic declined 4.9% and product mix declined 2.1%, with a 0.6% benefit from menu price increases. The company said the traffic decline primarily reflected reduced consumer demand from a cyclosporiasis outbreak in the current-year period, and that the mix decrease primarily reflected a shift toward wraps.

Restaurant-level profit was $18.3 million, and restaurant-level profit margin was 10.4%, down 270 basis points from 13.1% a year earlier. The company said the decline primarily reflected sales deleverage from the 6.4% same-store sales change and higher labor expenses, partially offset by a one-time write-off of discontinued materials and higher packaging costs related to tariffs and duties recognized in the prior-year period.

Loss from operations was $31.8 million, or 18.1% of revenue, versus a 21.0% operating loss margin a year earlier. The company said the improvement primarily reflected lower general and administrative expense and impairment and closure costs, partially offset by the lower restaurant-level profit margin. General and administrative expense was $27.6 million, or 15.7% of revenue, versus $30.9 million, or 17.9% of revenue, a year earlier. The company said the decrease was primarily due to a $2.5 million decline in stock-based compensation and a $0.5 million decline in management salaries and benefits, partially offset by higher marketing spend.

Net loss was $30.7 million, or 17.5% of revenue, versus a net loss of $36.1 million, or 21.0% of revenue, a year earlier. Adjusted EBITDA was a loss of $6.8 million, or (3.8)% of revenue, versus a loss of $4.4 million, or (2.5)%, a year earlier. The company said the change in adjusted EBITDA was primarily due to a $4.2 million decline in restaurant-level profit.

Net new restaurant openings were 3, versus 6 a year earlier. Total digital revenue was 66.1% of sales, up from 61.8% a year earlier, and owned digital revenue was 38.0%, up from 35.3%. Average unit volume, as adjusted, was $2,473, versus $2,769 a year earlier.

Co-founder and Chief Executive Officer Jonathan Neman said the company believes its Sweet Growth Transformation Plan is beginning to take hold, with sales improving through the quarter and positive comparable sales in October, primarily driven by transaction growth. The company said it is investing in restaurant teams, expanding the menu, and focusing on bringing more customers into restaurants.

For fiscal 2026, the company updated its outlook to approximately 10 net new restaurant openings, with about half featuring the Infinite Kitchen; same-store sales change of about (5.5)%; restaurant-level profit margin of 11.0% to 11.5%; and adjusted EBITDA between $(23.0) million and $(20.0) million. It said it expects about half as many net new restaurant openings in fiscal 2027 as in fiscal 2026.

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