Revenue growth has shifted from double-digit expansion to a 2.9% contraction in 2026Q1, while gross margins have experienced extreme volatility, plummeting to -1.5% from a 2024Q2 peak of 22.5%.
| Sales/Revenue | 674.69M | 679.47M | 676.83M | 584.04M | 470.11M | 339.87M | 220.62M | 274.15M |
| Revenue Growth % | -1.55% | 0.39% | 15.89% | 24.24% | 38.32% | 54.06% | -19.53% | - |
| Cost of Goods Sold | 603.27M | 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 | 71.42M | 103.53M | 132.95M | 101.92M | 69.29M | 40.41M | -8.7M | 43.98M |
| Gross Margin % | 10.59% | 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 | 197.81M | 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 | 134.33M | 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 | -126.39M | -111.41M | -95.7M | -122.34M | -193.34M | -134.4M | -141.59M | -70.07M |
| Operating Margin % | -18.73% | -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 | -51.55M | -38.86M | -27.44M | -61.97M | -146.64M | -98.85M | -114.74M | -50.66M |
| EBITDA Margin % | -7.64% | -5.72% | -4.05% | -10.61% | -31.19% | -29.08% | -52.01% | -18.48% |
| EBITDA Growth % | -84.56% | -41.6% | 55.72% | 57.74% | -48.35% | 13.85% | -126.51% | - |
| D&A (Non-Cash Add-back) | 74.84M | 72.55M | 68.26M | 60.37M | 46.7M | 35.55M | 26.85M | 19.42M |
| EBIT | -140.75M | -134M | -91.42M | -112.88M | -189.01M | -152.94M | -140.82M | -67.83M |
| Net Interest Income | 6M | 6.53M | 10.69M | 12.81M | 5.06M | 363K | 614K | 2.64M |
| Interest Income | 6.05M | 6.55M | 10.94M | 12.94M | 5.14M | 450K | 1.02M | 2.72M |
| Interest Expense | 47K | 19K | 256K | 128K | 83K | 87K | 404K | 88K |
| Other Income/Expense | 144.91M | -22.61M | 4.03M | 9.34M | 4.24M | -18.63M | 369K | 2.16M |
| Pretax Income | 18.52M | -134.02M | -91.67M | -113M | -189.1M | -153.03M | -141.22M | -67.92M |
| Pretax Margin % | 2.74% | -19.72% | -13.54% | -19.35% | -40.22% | -45.02% | -64.01% | -24.77% |
| Income Tax | 1.73M | 46K | -1.3M | 379K | 1.34M | 147K | 0 | 0 |
| Effective Tax Rate % | 9.36% | -0.03% | 1.42% | -0.34% | -0.71% | -0.1% | 0% | 0% |
| Net Income | 16.78M | -134.06M | -90.37M | -113.38M | -190.44M | -153.18M | -141.22M | -67.92M |
| Net Margin % | 2.49% | -19.73% | -13.35% | -19.41% | -40.51% | -45.07% | -64.01% | -24.77% |
| Net Income Growth % | 118.78% | -48.35% | 20.29% | 40.46% | -24.33% | -8.46% | -107.94% | - |
| Net Income (Continuing) | 16.78M | -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) | 0.14 | -1.14 | -0.79 | -1.01 | -1.73 | -1.40 | -1.61 | -0.62 |
| EPS Growth % | 115.58% | -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 | 120.23M | 117.96M | 114.32M | 111.91M | 110.13M | 108.83M | 87.68M | 108.19M |
| Basic Shares Outstanding | 118.66M | 117.96M | 114.32M | 111.91M | 110.13M | 109.35M | 87.68M | 108.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent negative operating margins
As indicated by the most recent quarterly data, Sweetgreen's revenue growth has decelerated significantly, shifting from double-digit expansion in 2024 to a contraction of 2.9% in 2026Q1, suggesting that the company's previous rapid scaling phase is encountering substantial headwinds in its core urban markets.
The transition from 29.1% growth in 2023Q4 to negative territory highlights a potential saturation of the brand's high-density urban footprint. Investors should monitor whether this deceleration reflects a broader shift in return-to-office patterns or a fundamental weakening of the brand's appeal in its primary metropolitan hubs.
Based on reported financial statements, gross margins have exhibited extreme volatility, plummeting to -1.5% in 2026Q1 from a peak of 22.5% in 2024Q2, which underscores the difficulty of maintaining profitability amidst rising input costs and the operational complexities of a fresh, scratch-made food supply chain.
The inability to sustain gross margins above 20% suggests that the company lacks the pricing power necessary to offset inflationary pressures on organic ingredients. This margin compression warrants further investigation into whether the current cost structure is fundamentally incompatible with the company's premium positioning.
According to the income statement history, Sweetgreen has failed to demonstrate meaningful operating leverage, as evidenced by persistent operating losses that reached -19.6% of revenue in 2026Q1, indicating that corporate overhead and SG&A expenses continue to outpace the company's ability to generate scalable restaurant-level profits.
The consistent gap between gross profit and operating income suggests that the corporate infrastructure is currently too heavy for the existing store base. Without a clear path to scaling revenue faster than fixed costs, the company may continue to struggle with structural profitability regardless of unit-level improvements.
As reported in recent filings, the 2026Q1 net income figure of $125.8M appears to be an anomaly driven by non-operating items rather than core restaurant performance, as the company has historically reported consistent net losses, suggesting that investors should focus on operating metrics rather than headline earnings.
The sudden swing to positive net income in the most recent quarter, despite negative gross margins, warrants extreme caution and further investigation into the nature of these non-recurring gains. Relying on such figures to project future profitability would likely lead to a significant misinterpretation of the company's underlying operational health.
While management emphasizes the 'Infinite Kitchen' as a catalyst for future efficiency, the current income statement data suggests that the capital-intensive nature of this rollout may be exacerbating cash burn, potentially creating a scenario where the promised margin expansion is offset by higher depreciation and maintenance costs.
Short-sellers would likely focus on the disconnect between the company's 'tech-enabled' narrative and the reality of its deteriorating margins. If the automation technology fails to deliver a sustained reduction in labor costs, the company may find itself with a bloated asset base and no clear path to achieving industry-standard profitability.
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.