Sweetgreen Announces Q2 2026 Financial Performance and Business Update
Sweetgreen, Inc., the mission-driven restaurant and lifestyle brand focused on serving healthy food at scale, has announced its financial results for the second quarter of fiscal year 2026, ended June 28, 2026. The company reported continued revenue growth during the quarter while acknowledging ongoing challenges related to restaurant-level profitability, customer traffic trends, and operating performance.
Sweetgreen said the quarter reflected progress in several key areas, including improved restaurant execution, stronger customer engagement with its menu offerings, and continued expansion of its digital ecosystem. However, the company noted that financial results remain below its long-term targets as it works to rebuild profitability and drive consistent guest traffic across its restaurant network.
“We are not where we need to be, but the progress we saw in the second quarter reinforces our confidence that the plan is working,” said Jonathan Neman, Co-Founder and Chief Executive Officer of Sweetgreen. “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.”
Second Quarter 2026 Financial Highlights
For the second quarter of fiscal year 2026, Sweetgreen reported total revenue of $192.7 million, representing a 3.8% increase compared with the same period in fiscal year 2025. The company attributed revenue growth primarily to new restaurant openings, with additional contributions from locations opened during or after the second quarter of the previous year.
Sweetgreen reported a Same-Store Sales Change of negative 6.2%, improving from negative 7.6% in the prior-year quarter. The decline reflected a 2.0% decrease in customer traffic and a 4.2% decline in product mix. According to the company, changes in product mix were influenced by increased promotional activity, a shift in menu preferences toward wraps, and the removal of ripple fries.
Digital sales continued to represent an important part of Sweetgreen’s customer engagement strategy. Total digital revenue represented 66.3% of sales during the quarter, up from 60.8% in the prior-year period. Owned digital revenue also increased, reaching 38.8% compared with 33.4% a year earlier. Sweetgreen noted that purchases made through its SG Rewards loyalty program, including scan-to-redeem and scan-to-earn transactions, contributed to owned digital sales growth.
The company opened two net new restaurants during the quarter, compared with nine net new restaurant openings during the second quarter of fiscal year 2025. Sweetgreen continues to focus on strategic restaurant expansion while improving operational efficiency across its existing locations.
Revenue Growth Driven by Restaurant Expansion
Sweetgreen’s second quarter revenue increase was primarily supported by $18.4 million in incremental revenue generated from 36 net new restaurant openings during or following the second quarter of fiscal year 2025.
This growth was partially offset by an $11.2 million decrease in comparable restaurant base revenue, resulting in the negative same-store sales performance. The company said the decline was impacted by lower traffic levels, promotional activity, and changes in menu purchasing patterns.
Sweetgreen has continued investing in menu innovation as part of its strategy to attract new customers and increase engagement among existing guests. The company highlighted the positive response to wraps, which have become an important menu category, while also focusing on improving restaurant execution and overall customer experience.
Profitability Pressures Continue
While Sweetgreen maintained revenue growth, profitability remained under pressure during the quarter. The company reported a loss from operations of $27.4 million, compared with an operating loss of $26.4 million in the second quarter of fiscal year 2025. Operating loss margin remained unchanged at negative 14.2%.
Restaurant-Level Profit totaled $25.2 million, compared with $35.1 million in the prior-year quarter. Restaurant-Level Profit Margin declined to 13.1%, compared with 18.9% a year earlier.
Sweetgreen attributed the decline in restaurant-level profitability primarily to the negative same-store sales performance, higher ingredient usage, investments in chicken and tofu portions, and increased promotional activity. These pressures were partially offset by lower general and administrative expenses and reduced impairment costs.
General and administrative expenses declined to $29.7 million, representing 15.4% of revenue, compared with $34.5 million, or 18.6% of revenue, in the prior-year period. The decrease was driven largely by lower stock-based compensation expenses and reduced management salary and benefits expenses.
Net Loss and Adjusted EBITDA Results
Sweetgreen reported a net loss of $26.3 million for the second quarter of fiscal year 2026, compared with a net loss of $23.2 million in the same period of fiscal year 2025.
The increase in net loss was primarily related to a $9.9 million decline in Restaurant-Level Profit. This impact was partially offset by reductions in general and administrative expenses, impairment expenses, and closure-related costs.
Adjusted EBITDA, a non-GAAP financial measure that excludes stock-based compensation and certain other adjustments, was negative $0.2 million during the quarter. This compared with Adjusted EBITDA of $6.4 million in the prior-year quarter. The decline was primarily driven by lower restaurant-level profitability.
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