Sweetgreen (SG) Q1 2026 earnings summary

Executive summary

• Focused on executing the Sweetgrowth transformation plan, prioritizing operational fundamentals and improved execution across restaurants.

• Q1 2026 was challenging due to tough comparisons, weather headwinds, and ongoing transformation work, but operational improvements and traffic gains were seen as the quarter progressed, especially in April.

• 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.

• National launch of wraps followed a disciplined stage gate process and major social marketing campaign, driving incremental traffic and strong guest response.

• Leadership and culture initiatives, including Impact Days and area leader summits, are reinforcing operational consistency and hospitality.

Financial highlights

• Q1 2026 revenue was $161.5 million, down 2.9% year-over-year from $166.3 million, with same-store sales down 12.8% due to an 11.2% decrease in traffic and a 2.3% decline in mix.

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

• Adjusted EBITDA was a loss of $8.1 million, compared to a gain of $285,000 last year.

• Cash and cash equivalents increased to $156.8 million at quarter-end, up from $89.2 million at year-end 2025.

• Net income was $125.8 million, primarily due to one-time gains from the sale of Spyce.

Outlook and guidance

• Reiterated full-year same-store sales guidance of -4% to -2% decline.

• Restaurant-level margin expected to range from 14.2% to 14.7%.

• Adjusted EBITDA guidance between $1 million and $6 million.

• Plan to open approximately 13 net new restaurants in 2026, with about half featuring Infinite Kitchen technology.