Sweetgreen, Inc. (NYSE: SG), a mission-driven, next-generation restaurant and lifestyle brand dedicated to serving healthy food at scale, has announced its financial results for the fourth quarter and full fiscal year ending December 29, 2024.
Fourth Quarter 2024 Financial Performance
In comparison to the fourth quarter of fiscal year 2023, Sweetgreen reported a total revenue of $160.9 million, marking a 5% increase from $153.0 million in the previous year’s quarter. The company’s Same-Store Sales Change was 4%, a slight decrease from the 6% increase recorded in the same period of the prior year. The Average Unit Volume (AUV) remained consistent at $2.9 million.
Sweetgreen’s digital business remains a significant part of its operations, with Total Digital Revenue Percentage at 56% and Owned Digital Revenue Percentage at 29%. These figures show a minor decrease compared to the prior year’s 58% and 34%, respectively.
Despite revenue growth, the company posted a loss from operations of $(31.4) million, with a margin of (20)%, slightly higher than the $(29.3) million loss from operations and (19)% margin recorded in the fourth quarter of 2023. However, Restaurant-Level Profit improved to $28.0 million, with a margin of 17%, up from $24.8 million and a 16% margin in the prior year.
Net loss stood at $(29.0) million, maintaining a net loss margin of (18)%—similar to the $(27.4) million net loss and (18)% margin from the prior year’s quarter. Adjusted EBITDA was nearly breakeven at $(0.6) million, an improvement from $(1.8) million in the previous year’s quarter. Additionally, the company achieved 10 Net New Restaurant Openings, a significant expansion compared to just 1 new location in the same period of 2023.
Full Year Fiscal 2024 Financial Performance
For the full fiscal year 2024, Sweetgreen generated $676.8 million in total revenue, marking a strong 16% increase from the $584.0 million revenue recorded in 2023. The company’s Same-Store Sales Change stood at 6%, improving from 4% in the previous year.
The Average Unit Volume (AUV) remained steady at $2.9 million. Digital sales played a crucial role, with Total Digital Revenue Percentage at 56% and Owned Digital Revenue Percentage at 30%, slightly lower than the prior year’s 59% and 36%, respectively.
Loss from operations showed a notable improvement, narrowing to $(95.7) million with a margin of (14)%, compared to $(122.3) million and a (21)% margin in the prior year. Sweetgreen also saw an improvement in profitability at the restaurant level, with Restaurant-Level Profit increasing to $132.9 million and a margin of 20%, up from $101.9 million and a 17% margin in 2023.
Net loss for the year was $(90.4) million, with a net loss margin of (13)%, marking an improvement from the $(113.4) million net loss and (19)% margin recorded in the previous year. Adjusted EBITDA was positive at $18.7 million, a significant turnaround from $(2.8) million in fiscal year 2023. The Adjusted EBITDA Margin improved to 3%, compared to 0% in the prior year.
Sweetgreen continued its expansion efforts, opening 25 Net New Restaurants in 2024, although this was slightly lower than the 35 new locations added in 2023.
Key Financial Metrics and Non-GAAP Measures
Sweetgreen’s financial performance is measured using several key indicators, including Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. These non-GAAP measures provide insight into operational efficiency and profitability.
For reconciliations of these non-GAAP financial metrics to the most directly comparable GAAP financial measures, please refer to the financial schedules accompanying this earnings release under the section “Reconciliation of GAAP to Non-GAAP Measures.”
Strategic Outlook and Future Plans
Jonathan Neman, Co-Founder and CEO of Sweetgreen, expressed optimism about the company’s performance and future strategy. “Our 2024 results exceeded our initial expectations, thanks to the strength of our menu innovation, technology, and overall guest experience,” said Neman. “In 2025, we’re rolling out a new and improved loyalty program, introducing exciting new menu items, and strategically investing more in marketing to bring more people into our restaurants. By staying focused on delivering an exceptional experience, we’re setting Sweetgreen up to lead—and redefine—fast food for the future.”
Mitch Reback, Chief Financial Officer, highlighted the company’s financial improvements and long-term potential. “Since our IPO in 2021, we have delivered four years of double-digit revenue growth and four consecutive years of restaurant-level margin expansion. In 2024, restaurant-level margin expanded over 200 basis points, and Adjusted EBITDA of $18.7 million improved by $21.5 million over the prior year period,” said Reback. “This marks our first full year of Adjusted EBITDA profitability in Sweetgreen’s history, providing a solid foundation to grow and expand in the years to come.”
Detailed Fourth Quarter Analysis
Revenue growth in the fourth quarter of 2024 was primarily driven by additional revenue from 26 Net New Restaurant Openings between Q4 2023 and Q4 2024, as well as a 4% increase in Same-Store Sales due to menu price adjustments. However, these gains were partially offset by a decrease in fiscal year-over-year comparable restaurant sales, which would have been reflected in Same-Store Sales Change if not for the misalignment in comparable weeks due to fiscal year 2023 being a 53-week year.
The company’s loss from operations margin slightly widened to (20)%, compared to (19)% in the prior year. However, Restaurant-Level Profit Margin improved by over 100 basis points to 17%, reflecting menu price increases and continued labor optimization, partially offset by the impact of the additional week of revenue in fiscal year 2023.
General and administrative expenses rose to $37.1 million, or 23% of revenue, compared to $35.5 million in the prior year. This increase was mainly due to legal settlements, payroll tax increases related to the vesting of Founders’ performance stock units, and greater spending at the Sweetgreen Support Center to support restaurant growth. However, these increases were partially offset by reduced stock-based compensation expenses.
Net loss for the quarter was $(29.0) million, compared to $(27.4) million in the prior year. The increase was primarily due to a $1.7 million rise in impairment and closure costs, a $1.2 million increase in pre-opening costs from the 10 Net New Restaurant Openings, and higher general administrative and depreciation expenses. However, a $3.2 million boost in Restaurant-Level Profit helped offset these costs.
Adjusted EBITDA, which excludes stock-based compensation and other adjustments, improved to $(0.6) million from $(1.8) million in the previous year, largely due to increased Restaurant-Level Profit.
With continued focus on menu innovation, technology enhancements, and strategic growth initiatives, Sweetgreen is positioned to build on its positive momentum in 2025 and beyond.
