Sweetgreen Reports $192.7 Million Revenue with Increased Losses in Q2 2026

Sweetgreen, Inc. reported a revenue of $192.7 million for the thirteen weeks ended June 28, 2026, marking a 3.8% increase from $185.6 million in the same period the previous year. For the first half of fiscal 2026, the company generated $354.2 million in revenue, a slight increase of 0.7% compared to $351.9 million in the prior year. Despite the revenue growth, Sweetgreen recorded a net loss of $26.3 million for the second quarter, compared to a loss of $23.2 million in the same quarter of 2025. The company attributed the loss primarily to increased operating costs and a decline in same-store sales, which fell by 6.2% in the second quarter.

In terms of operational changes, Sweetgreen opened two new restaurants in the second quarter, bringing its total to 287 locations across 24 states and Washington, D.C. The company has also integrated its Infinite Kitchen technology into 35 of its restaurants, which is part of its strategy to enhance operational efficiency and customer experience. The company plans to open approximately 13 new restaurants in fiscal 2026, with about half featuring the Infinite Kitchen units. However, the company experienced a decline in customer traffic, which it attributes to changing consumer behaviors, including a shift towards remote work and increased competition from lower-cost dining options.

Sweetgreen's restaurant operating costs increased significantly, with food, beverage, and packaging costs rising by 11.6% to $57.4 million in the second quarter. Labor and related expenses also increased by 10.3% to $56.3 million, reflecting wage inflation and lower sales volume. General and administrative expenses decreased by 13.9% to $29.7 million, primarily due to reduced stock-based compensation expenses. The company reported a total operating loss of $27.4 million for the second quarter, slightly higher than the loss of $26.4 million in the same period last year.

The company’s cash and cash equivalents increased to $142.6 million as of June 28, 2026, up from $89.2 million at the end of the previous fiscal year. This increase was bolstered by the $100 million cash received from the sale of Spyce Food Co. and related assets, which also contributed to a pre-tax gain of $160.6 million recognized in the first half of the fiscal year. Looking ahead, Sweetgreen aims to mitigate rising costs through operational efficiencies and menu price adjustments, although it acknowledges the challenges posed by ongoing economic conditions and consumer demand fluctuations.

Sweetgreen's management remains cautious about the future, particularly in light of recent food safety incidents that have impacted consumer demand for fresh prepared foods. The company is committed to maintaining rigorous food safety protocols and monitoring the situation closely. As it navigates these challenges, Sweetgreen continues to focus on expanding its digital revenue channels and enhancing customer engagement through its SG Rewards loyalty program, which has contributed to a significant increase in digital sales.