Sweetgreen (SG) investor relations material

Executive summary

• Focused on executing the Sweetgrowth transformation plan, prioritizing operational excellence, menu innovation, and disciplined investment.

• Net income reached $125.8 million for Q1 2026, driven by a $160.6 million gain from the sale of Spyce and Infinite Kitchen assets to Wonder Group.

• Revenue declined 2.9% year-over-year to $161.5 million, with a 12.8% decrease in same-store sales due to lower traffic and product mix.

• National launch of wraps after successful testing, driving incremental traffic and positive guest response.

• Opened four net new restaurants in Q1, including three Infinite Kitchens, ending with 285 total locations.

Financial highlights

• Q1 revenue was $161.5 million, down from $166.3 million year-over-year.

• Comparable sales declined 12.8%, driven by an 11.2% drop in traffic and 2.3% decline in mix, partially offset by menu price increases.

• Restaurant-level profit margin fell to 10.0% from 17.9%, impacted by higher ingredient usage, increased protein portions, and more promotional activity.

• Adjusted EBITDA was a loss of $8.1 million (margin -5.0%), compared to a gain of $285,000 last year.

• Cash and cash equivalents increased to $156.8 million as of quarter-end.

Outlook and guidance

• FY2026 guidance: 13 net new restaurant openings (about half with Infinite Kitchen), same-store sales change between -4.0% and -2.0%, restaurant-level profit margin of 14.2%-14.7%, and adjusted EBITDA of $1.0-$6.0 million.

• Q2 comparable sales expected to improve to around -4%.

• Management expects continued margin pressure from sales channel mix and inflation but aims for improvement as scale increases.

• Capital expenditures expected to decrease in 2026 due to lower new store openings and automation investments.