Sweetgreen, Inc. (NYSE: SG), the mission-driven, next-generation restaurant and lifestyle brand known for serving healthy, freshly prepared meals at scale, today announced its financial results for the first quarter ended March 30, 2025. Despite navigating a complex and evolving operating environment, the company delivered modest revenue growth, stable unit economics, and continued progress on its path toward long-term profitability.
First Quarter 2025 Highlights
For the first fiscal quarter of 2025, Sweetgreen reported total revenue of $166.3 million, marking a 5.4% increase compared to $157.9 million in the first quarter of fiscal 2024. This year-over-year growth was largely driven by the opening of 30 net new restaurants since the prior year’s comparable period. These new locations contributed incremental revenue of $13.7 million, signaling continued consumer demand for Sweetgreen’s core offering and geographic expansion.
However, same-store sales declined by 3.1% compared to a 5.0% increase in the same quarter of the prior year. This decline was attributed to a 6.5% decrease in traffic and product mix, partially offset by a 3.4% uplift from menu price increases introduced after the first quarter of 2024. The decrease reflects broader industry challenges, including softer consumer spending and heightened competition in the fast-casual space.
Sweetgreen’s average unit volume (AUV) remained flat year-over-year at $2.9 million, reinforcing the brand’s operational consistency even in a tougher sales environment.
From a digital standpoint, Sweetgreen continues to lead the industry with a strong omnichannel presence. Digital orders represented 59.9% of total revenue, up slightly from 58.9% in the prior year period. The company’s owned digital channels—which include orders placed through its app and website—accounted for 31.9% of total revenue, compared to 32.8% in the first quarter of 2024. This slight decrease reflects a shifting digital mix, but also the company’s ongoing investment in digital innovation and user experience.
Operational and Profitability Metrics
Despite the revenue increase, loss from operations in Q1 2025 was $(28.5) million, or (17.2)% of revenue, slightly higher than the prior year’s operating loss of $(26.9) million, or (17.1)% of revenue. This marginal change reflects increased operating expenses and ongoing investments in growth, partially balanced by improved efficiencies at the store level.
Sweetgreen’s Restaurant-Level Profit reached $29.7 million, up from $28.5 million in Q1 2024. However, the Restaurant-Level Profit Margin edged down to 17.9%, compared to 18.1% in the previous year. The decline in margin was primarily due to the aforementioned drop in same-store sales and higher advertising spend, though these were partly mitigated by improvements in ingredient sourcing, labor productivity, and lower occupancy costs across newly opened locations.
General and administrative (G&A) expenses rose to $38.3 million, or 23.1% of revenue, up from $36.9 million, or 23.4% of revenue in the prior year. The absolute increase in G&A was driven by elevated investment in marketing and infrastructure at the Sweetgreen Support Center, which supports both current and future restaurant operations. Importantly, the G&A ratio declined slightly as a percentage of revenue, indicating early signs of operating leverage. Notably, some of this increase was offset by reductions in management salary and bonus expenses, highlighting the company’s efforts to manage costs responsibly.
Sweetgreen reported a net loss of $(25.0) million, an improvement from a net loss of $(26.1) million in Q1 2024. This year-over-year reduction in net loss was primarily the result of higher restaurant-level profitability. However, this benefit was partially offset by increases in depreciation and amortization, tied to a growing store base, and the uptick in general administrative expenses.
Adjusted EBITDA, a key profitability metric that excludes stock-based compensation and other one-time costs, was $0.3 million, compared to $0.1 million in the same period last year. The modest improvement reflects a more efficient restaurant base, despite a difficult traffic environment and cost pressures.
Sweetgreen opened five new restaurants during the quarter, compared to six openings in the first quarter of 2024. The company continues to focus on disciplined expansion, targeting markets where the brand can deliver high ROI and build long-term community connections.
Leadership Commentary
“Sweetgreen’s first quarter results demonstrate the strength and adaptability of our operating model,” said Jonathan Neman, Co-Founder and Chief Executive Officer. “In the face of a challenging industry landscape, we stayed true to our mission, driving innovation and elevating the guest experience. We believe the strength of our brand, our deep focus on the customer, and our commitment to delivering a meaningful value proposition positions Sweetgreen well to navigate the current environment.”
Mitch Reback, Chief Financial Officer, added, “In the first quarter, Sweetgreen delivered a restaurant-level margin of 17.9%, ahead of our guidance range despite external headwinds. We believe our financial model, combined with a focus on innovation, will enable Sweetgreen to reach more communities, deepen guest engagement, and build a resilient platform for sustainable, long-term growth.”
