Sweetgreen Stock Earnings Reports

Key points for investors: Sweetgreen reported Q1 FY2026 revenue of $161.5M with comparable sales down 12.8% (traffic down ~11.2%). Restaurant-level margin fell to 10% (vs. 17.9% prior year) and adjusted EBITDA was a loss of $8.1M. The quarter was impacted by tough compares (prior-year Ripple Fries), weather headwinds, promotional mix, and investments in targeted pricing/loyalty. Management says operational execution improved through the quarter and accelerated into April (April comps ~ -8% per management), driven by initiatives under Project One Best Way and new menu items (Chicken Sesame Crunch Bowl). Sweetgreen launched its Wraps platform nationally after multi-market testing—management reports strong guest response, encouraging incremental traffic and high social sentiment. Loyalty enhancements (Craving of the Month; lower redemption thresholds coming) and a planned rearchitected pricing ladder (testing starting late June) aim to broaden entry points and frequency. Cost pressures: food & packaging were 29% of revenue (+250 bps YoY) driven by higher ingredient usage and portioning; Q2 food cost expected to be in line with Q1 (produce/fuel pressures transitory). Labor was 31.4% of revenue in Q1 (+250 bps YoY); Q2 labor expected ~low 29% range. Corporate G&A improved (lower stock comp and headcount actions); cash was $156.8M. Openings: 4 net in Q1; 285 restaurants total (33 Infinite Kitchens). FY26 guidance reiterated: same-store sales decline -4% to -2%; restaurant-level margin 14.2%–14.7%; adjusted EBITDA $1M–$6M; ~13 net new restaurants expected (about half with Infinite Kitchen). Management emphasizes it is early in a multi-quarter transformation focused on operational excellence, menu innovation, personalized digital experience, brand relevance and disciplined investment.