Revenue growth has flattened to 2.1% in 2026Q3 while gross margin fell from 22.5% in 2024Q2 to -18.1%, indicating deteriorating unit economics against a stable SG&A base of roughly $27M to $40M per quarter.
Sweetgreen, Inc. (SG) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 685.39M | 679.47M | 676.83M | 584.04M | 470.11M | 339.87M | 220.62M | 274.15M |
| Revenue Growth % | 0.03% | 0.39% | 15.89% | 24.24% | 38.32% | 54.06% | -19.53% | - |
| Cost of Goods Sold | 678.23M | 575.94M | 543.88M | 482.12M | 400.82M | 299.47M | 229.32M | 230.18M |
| COGS % of Revenue | - | 84.76% | 80.36% | 82.55% | 85.26% | 88.11% | 103.94% | 83.96% |
| Gross Profit | 7.17M | 103.53M | 132.95M | 101.92M | 69.29M | 40.41M | -8.7M | 43.98M |
| Gross Margin % | 1.05% | 15.24% | 19.64% | 17.45% | 14.74% | 11.89% | -3.94% | 16.04% |
| Gross Profit Growth % | - | -22.13% | 30.44% | 47.1% | 71.48% | 564.32% | -119.79% | - |
| Operating Expenses | 189.75M | 214.94M | 228.65M | 224.26M | 262.62M | 174.8M | 132.89M | 114.05M |
| OpEx % of Revenue | - | 31.63% | 33.78% | 38.4% | 55.86% | 51.43% | 60.24% | 41.6% |
| Selling, General & Admin | 126.28M | 143.4M | 149.94M | 146.76M | 187.37M | 125.04M | 99.14M | 88.82M |
| SG&A % of Revenue | - | 21.1% | 22.15% | 25.13% | 39.86% | 36.79% | 44.94% | 32.4% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 71.54M | 78.71M | 77.5M | 75.26M | 49.76M | 33.75M | 25.23M |
| Operating Income | -132.48M | -111.41M | -95.7M | -122.34M | -193.34M | -134.4M | -141.59M | -70.07M |
| Operating Margin % | -19.33% | -16.4% | -14.14% | -20.95% | -41.13% | -39.54% | -64.18% | -25.56% |
| Operating Income Growth % | - | -16.41% | 21.77% | 36.72% | -43.85% | 5.08% | -102.07% | - |
| EBITDA | -57.38M | -39.87M | -27.44M | -61.97M | -146.64M | -98.85M | -114.74M | -50.66M |
| EBITDA Margin % | -8.37% | -5.87% | -4.05% | -10.61% | -31.19% | -29.08% | -52.01% | -18.48% |
| EBITDA Growth % | -38.32% | -45.28% | 55.72% | 57.74% | -48.35% | 13.85% | -126.51% | - |
| D&A (Non-Cash Add-back) | 75.1M | 71.54M | 68.26M | 60.37M | 46.7M | 35.55M | 26.85M | 19.42M |
| EBIT | 20.75M | -134M | -91.42M | -112.88M | -189.01M | -152.94M | -140.82M | -67.83M |
| Net Interest Income | 5.08M | 6.53M | 10.69M | 12.81M | 5.06M | 363K | 614K | 2.64M |
| Interest Income | 5.18M | 6.55M | 10.94M | 12.94M | 5.14M | 450K | 1.02M | 2.72M |
| Interest Expense | 107K | 19K | 256K | 128K | 83K | 87K | 404K | 88K |
| Other Income/Expense | 153.12M | -22.61M | 4.03M | 9.34M | 4.24M | -18.63M | 369K | 2.16M |
| Pretax Income | 20.64M | -134.02M | -91.67M | -113M | -189.1M | -153.03M | -141.22M | -67.92M |
| Pretax Margin % | 3.01% | -19.72% | -13.54% | -19.35% | -40.22% | -45.02% | -64.01% | -24.77% |
| Income Tax | 1.58M | 46K | -1.3M | 379K | 1.34M | 147K | 0 | 0 |
| Effective Tax Rate % | 7.63% | -0.03% | 1.42% | -0.34% | -0.71% | -0.1% | 0% | 0% |
| Net Income | 19.07M | -134.06M | -90.37M | -113.38M | -190.44M | -153.18M | -141.22M | -67.92M |
| Net Margin % | 2.78% | -19.73% | -13.35% | -19.41% | -40.51% | -45.07% | -64.01% | -24.77% |
| Net Income Growth % | 116.82% | -48.35% | 20.29% | 40.46% | -24.33% | -8.46% | -107.94% | - |
| Net Income (Continuing) | 19.07M | -134.06M | -90.37M | -113.38M | -190.44M | -153.18M | -141.22M | -67.92M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.16 | -1.14 | -0.79 | -1.01 | -1.73 | -1.40 | -1.61 | -0.62 |
| EPS Growth % | 115.46% | -44.3% | 21.78% | 41.62% | -23.57% | 13.04% | -159.68% | - |
| EPS (Basic) | - | -1.14 | -0.79 | -1.01 | -1.73 | -1.40 | -1.61 | -0.62 |
| Diluted Shares Outstanding | 119.11M | 117.96M | 114.32M | 111.91M | 110.13M | 108.83M | 87.68M | 108.19M |
| Basic Shares Outstanding | 119.11M | 117.96M | 114.32M | 111.91M | 110.13M | 109.35M | 87.68M | 108.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SG stock.
For fiscal year 2025, Sweetgreen, Inc. (SG) reported total revenue of $679.5M. This represents a 147.8% increase compared to $274.2M in 2019.
Sweetgreen, Inc. (SG) reported a net loss of $134.1M for the fiscal year ending 2025.
Sweetgreen, Inc. (SG) reported an operating income of $-111.4M, resulting in an operating profit margin of -16.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Sweetgreen, Inc. (SG) generated $103.5M in gross profit for the year, representing a gross profit margin of 15.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses and leverage
Metrics are mathematically derived from official filings.
Top-Line Growth Has Flattened Materially
Based on the reported quarterly figures, Sweetgreen's revenue of $176.0M in the latest quarter grew only 2.1% year over year, suggesting demand has stalled after strong growth of 21.1% in mid-2024.
The sharp deceleration from double-digit growth in 2024 to near-flat results in 2026 appears to reflect a combination of softer return-to-office traffic and mature urban store productivity. Management's commentary on positive October comparable sales, driven by transactions, may indicate early traction, but a single month of data does not yet establish a durable inflection. Investors should monitor whether comparable transaction growth persists into subsequent quarters before concluding the top-line slowdown has reversed.
Gross Margin Compression Undermines Unit Economics
As reported in the income statement, gross margin fell from 22.5% in 2024Q2 to a negative -1.5% in 2026Q1 before recovering to -18.1% in 2026Q3, indicating severe pressure on food and labor cost absorption.
The steady erosion of gross profit suggests that premium organic sourcing and labor-intensive preparation are not being offset by pricing or throughput gains. The latest quarter's negative gross profit of -$31.8M, against COGS of $207.8M, appears inconsistent with a sustainable restaurant model and warrants scrutiny of whether cost inflation or unfavorable accounting for occupancy and labor is driving the decline. Peer gross margins of 18% to 26% for SHAK, CAVA, and BROS highlight the magnitude of the gap.
Negative Operating Leverage Persists Across Periods
Based on Sweetgreen's reported figures, operating margin deteriorated from -8.8% in 2024Q2 to -18.1% in 2026Q3 while SG&A remained near $27M to $40M per quarter, indicating no scaling benefit.
Because gross profit has turned negative, corporate overhead cannot be absorbed at any revenue level in the current configuration, which suggests the cost base is structurally misaligned with store-level economics. The lack of operating leverage implies that incremental revenue would not reduce losses without a meaningful improvement in restaurant-level margins. This points to automation and labor productivity as the key variables analysts should track.
Net Income Distorted by Non-Operating Swings
As reported in the financial statements, Sweetgreen posted a net income of $125.8M in 2026Q1 despite an operating loss of -$31.7M, a gap that appears driven by non-operating items rather than core performance.
The positive net result in a quarter with negative operating income suggests a one-time or non-operating gain that materially inflates reported earnings, and it should not be read as evidence of improving profitability. Stock-based compensation of $43.9M in 2025Q4 further separates GAAP results from operating cash economics. Analysts should reconcile these items against the 10-K before relying on any EPS trend.
Cost Base Anchored by Variable Food Inputs
Based on reported COGS of $207.8M against revenue of $176.0M in the latest quarter, cost of goods sold now exceeds total sales, indicating input and labor costs are not being passed through to customers.
The cost structure appears dominated by variable food and labor expenses, which suggests the scratch-made model carries higher fixed-like labor intensity than assembly-line peers. SG&A has held in a narrow band of roughly $27M to $40M, implying management has limited ability to cut corporate overhead without impairing growth initiatives. Monitoring the pace of automation deployment is therefore central to any credible cost reset.
Automation Thesis Remains Unproven
Bears would argue that with gross margin at -18.1% and EPS of -$0.26 in the latest quarter, the Infinite Kitchen margin thesis has not yet appeared in reported results despite ongoing deployment.
The bear case centers on the risk that automation proves costly to scale, with retrofit and depreciation burdens offsetting labor savings, while California wage legislation adds structural cost pressure. A leverage ratio of 1.00 against persistently negative returns on equity of -33.4% leaves limited cushion if revenue stays near flat. Investors should treat the margin recovery narrative as an unverified assumption until several consecutive quarters show gross margin improvement.