Sweetgreen, Inc. (SG): Results of Operations and Financial Condition
Sweetgreen, Inc. (SG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Sweetgreen, Inc. Announces Second Quarter 2026 Financial Results LOS ANGELES--(BUSINESS WIRE)-- Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for
How this was made
The 30-second read
Why it matters
The company’s updated guidance reflects weaker same-store sales and materially worse Adjusted EBITDA, attributing reduced fresh-prepared-food demand to a multistate cyclosporiasis outbreak with uncertain recovery timing.
Market read
This is a primary earnings-and-guidance disclosure with explicit FY2026 ranges and a specific demand shock narrative, making it actionable for positioning and estimate revisions.
What to watch
Digital revenue mix rose (digital share and owned digital share), and G&A as a percent of revenue improved; traders should separate traffic/mix weakness from potential operating leverage as the outbreak normalizes.
Sweetgreen, Inc. Announces Second Quarter 2026 Financial Results
Revenue increased 3.8% to $192.7 million, but Same-Store Sales Change was (6.2)%, Restaurant-Level Profit Margin declined to 13.1%, and Adjusted EBITDA was $(0.2) million versus $6.4 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $192.7 million | – | increased 3.8% |
| Same-Store Sales Changeother | (6.2)% | – | – |
| Total Digital Revenue Percentageother | 66.3% | – | up from 60.8% |
| Owned Digital Revenue Percentageother | 38.8% | – | up from 33.4% |
| Loss from operationsGAAP | $(27.4) million | – | – |
| Loss from operations marginGAAP | (14.2)% | – | – |
| Restaurant-Level Profitnon-GAAP | $25.2 million | – | – |
| Restaurant-Level Profit Marginnon-GAAP | 13.1% | – | a decrease of roughly 600 basis points |
| Net lossGAAP | $(26.3) million | – | – |
| Net loss marginGAAP | (13.6)% | – | – |
| Adjusted EBITDAnon-GAAP | $(0.2) million | – | – |
| Adjusted EBITDA Marginnon-GAAP | (0.1)% | – | – |
| Net New Restaurant Openingsother | 2 | – | – |
| Incremental revenue associated with 36 Net New Restaurant Openingsother | $18.4 million | – | – |
| Decrease in Comparable Restaurant Base revenueother | $11.2 million | – | – |
| Traffic changeother | 2.0% decrease | – | – |
| Product mix changeother | 4.2% decrease | – | – |
| General and administrative expenseGAAP | $29.7 million | – | – |
| General and administrative expense as a percentage of revenueGAAP | 15.4% of revenue | – | – |
| Decrease in stock-based compensation expenseGAAP | $2.8 million | – | – |
| Decrease in management salary and benefits expenseGAAP | $1.2 million | – | – |
fiscal year 2026 outlook
- NoteApproximately 13 Net New Restaurant Openings, with about half featuring the Infinite Kitchen
- NoteSame-Store Sales Change between (8.0)% to (7.0)%
- NoteRestaurant-Level Profit Margin of 10.5% to 11.0%
- NoteAdjusted EBITDA between $(27.0) million to $(23.0) million
What drove it
- The increase in revenue was primarily due to an increase of $18.4 million of incremental revenue associated with 36 Net New Restaurant Openings during or subsequent to the second quarter of fiscal year 2025.
- The increase in revenue was partially offset by a decrease in Comparable Restaurant Base revenue of $11.2 million, resulting in a negative Same-Store Sales Change of 6.2%.
- The decrease in mix was primarily driven by increased promotional activity, a shift in menu mix towards wraps, and the removal of ripple fries.
- Restaurant-Level Profit Margin declined due to higher overall ingredient usage, investments in chicken and tofu portions, and increased promotional activity.
- General and administrative expense decreased primarily due to lower stock-based compensation expense and lower management salary and benefits expense.
Concerns
- Same-Store Sales Change was (6.2)%, reflecting a 2.0% decrease in traffic and a 4.2% decrease in product mix.
- Restaurant-Level Profit declined to $25.2 million from $35.1 million, and Restaurant-Level Profit Margin declined to 13.1% from 18.9%.
- Net loss increased to $(26.3) million from $(23.2) million.
- The updated outlook reflects reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis since mid-July, and the pace and timing of recovery remain uncertain.
- Adjusted EBITDA was $(0.2) million, compared with $6.4 million in the prior year period.
What to watch
- Recovery in consumer demand for fresh prepared foods following the multistate outbreak of cyclosporiasis since mid-July.
- Same-Store Sales Change within the fiscal year 2026 outlook range of (8.0)% to (7.0)%.
- Restaurant-Level Profit Margin relative to the fiscal year 2026 outlook of 10.5% to 11.0%.
- Adjusted EBITDA relative to the fiscal year 2026 outlook of $(27.0) million to $(23.0) million.
- Execution of approximately 13 Net New Restaurant Openings, with about half featuring the Infinite Kitchen.
- The impact of promotional activity, wrap mix, chicken and tofu portion investments, and ingredient usage on restaurant-level profitability.
Analysis
Sweetgreen reported total revenue of $192.7 million, up 3.8% versus the prior year period. The reported revenue growth was driven by $18.4 million of incremental revenue associated with 36 Net New Restaurant Openings during or subsequent to the second quarter of fiscal year 2025. Comparable Restaurant Base revenue declined by $11.2 million, producing a Same-Store Sales Change of (6.2)%. Traffic decreased 2.0% and product mix decreased 4.2%.
Management, verbatim
Our results are not where they need to be, but the progress we saw in the second quarter reinforces our confidence that the plan is working. Guests are responding to wraps, restaurant execution is improving, and transactions strengthened throughout the quarter. We remain focused on delivering a consistently great guest experience, bringing more guests into Sweetgreen, and rebuilding restaurant-level profitability.
Jonathan Neman, Co-Founder and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP and non-GAAP diluted earnings per share
- Gross profit and gross margin
- Segment revenue and segment profitability
- Revenue guidance
- Operating expense guidance
- Tax-rate guidance
- Cash and cash equivalents
- Debt
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported metrics
- Prior fiscal year 2026 outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sweetgreen filed an SEC 8-K with its Q2 FY2026 results and an updated FY2026 outlook.
Ticker impact
Sweetgreen reported Q2 FY2026 results and updated FY2026 outlook, including same-store sales guidance of -8.0% to -7.0% and Adjusted EBITDA of -$27.0M to -$23.0M.
Bias to downside or elevated volatility until investors gain clarity on the outbreak’s impact and the pace of restaurant-level profitability recovery.
The company provides concrete guidance ranges and explicitly links reduced consumer demand to the outbreak, while Q2 shows lower restaurant-level profit and a swing to near-breakeven/negative Adjusted EBITDA.
Market effects
Signals heightened food-safety and demand-risk sensitivity for fast-casual/healthy restaurant operators, potentially widening discount rates for the group.
Outbreak-driven demand uncertainty may be most acute in markets with higher exposure to affected supply chains or customer bases.
Limited direct global spillover, but it reinforces that food-safety events can quickly alter consumer traffic and margins for restaurant brands.
Counterpoint
Management frames the quarter as progress toward improving execution and guest response, and the outlook uncertainty is tied to an external outbreak rather than a structural demand collapse.
Key entities
- companySweetgreen, Inc.
Reports Q2 FY2026 financial results and updates FY2026 outlook, citing outbreak-related demand uncertainty.
- executiveJonathan Neman
Co-Founder and CEO, quoted on progress in execution and guest response.
