Sweetgreen announced its third‑quarter 2025 financial results on Friday, November 7, 2025. Revenue for the quarter was $172.4 million, a 0.6% decline year‑over‑year, driven by a 9.5% drop in same‑store sales and a 11.7% decline in traffic and product mix. The company’s net loss widened to $36.1 million, reflecting higher ingredient costs, packaging tariffs, and increased restaurant‑level advertising spend.
Margin pressure continued as the restaurant‑level profit margin fell to 13.1%, a 700‑basis‑point decline from the same period last year. The loss of $36.1 million was largely due to a $12.4 million decrease in restaurant‑level profit, higher protein costs, and a one‑time write‑off of discontinued materials. Despite these headwinds, Sweetgreen maintained disciplined cost management, with food, beverage, and packaging costs falling to 26.5% of revenue from 27.7% a year earlier.
The company updated its fiscal‑year 2025 outlook, maintaining guidance for 15‑20 net new restaurants in 2026, with roughly half featuring the Infinite Kitchen. Sweetgreen also reiterated its focus on disciplined growth and operational efficiency, noting that the sale of Spyce to Wonder will free capital for core expansion while preserving access to the Infinite Kitchen platform. The guidance reflects a cautious stance amid macro uncertainty, but signals confidence in the company’s long‑term strategy.
For investors, the Q3 results underscore Sweetgreen’s ongoing profitability challenges and the need for continued margin improvement. The company’s emphasis on technology, disciplined expansion, and a refreshed loyalty program suggests a path toward sustainable growth, but the narrowed margins and net loss highlight the importance of monitoring operational execution and cost controls in the coming quarters.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.