Sweetgreen, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a slight decline in revenue and a significant increase in net loss compared to the same period last year. For the thirteen weeks ended September 28, 2025, the company generated revenue of $172.4 million, a decrease of 0.6% from $173.4 million in the prior year. The net loss for the quarter was $36.1 million, or $0.31 per share, compared to a net loss of $20.8 million, or $0.18 per share, in the same quarter of 2024. For the thirty-nine weeks ended September 28, 2025, revenue increased by 1.6% to $524.3 million, while the net loss rose to $84.3 million from $61.3 million in the previous year.
The company's operating costs also saw a notable increase, with total restaurant operating costs rising by 8.2% to $149.9 million for the third quarter. This increase was driven by higher food, beverage, and packaging costs, which rose by 10.9% to $52.9 million, as well as labor and related expenses, which increased by 5.5% to $50.2 million. The company attributed these rising costs to the opening of new restaurants and inflationary pressures on food prices. Additionally, Sweetgreen recorded significant impairment and closure costs of $4.6 million during the quarter, reflecting challenges in certain locations.
Strategically, Sweetgreen announced plans to sell its Spyce Food Co. business unit, which focuses on kitchen automation technology, to Wonder Group, Inc. for a total consideration of $186.4 million. This transaction, expected to close in late 2025 or early 2026, will allow Sweetgreen to continue utilizing the Infinite Kitchen technology while strengthening its balance sheet. The company also reported six net new restaurant openings during the quarter, bringing its total to 266 locations across 23 states and Washington, D.C. Sweetgreen plans to open 37 new restaurants in fiscal 2025, with a focus on integrating Infinite Kitchen units into approximately half of these new locations.
Operationally, Sweetgreen's customer engagement metrics showed mixed results. The company reported a Same-Store Sales Change of -9.5% for the third quarter, driven by a decline in customer traffic and product mix, which was partially offset by menu price increases. The Total Digital Revenue Percentage increased to 61.8%, up from 55.1% in the prior year, indicating a growing reliance on digital sales channels. However, the Average Unit Volume (AUV) decreased to $2,769, down 4.7% from the previous year, reflecting the challenges faced in the current macroeconomic environment.
Looking ahead, Sweetgreen remains focused on expanding its restaurant footprint and enhancing customer experience through its new SG Rewards loyalty program. The company is also navigating macroeconomic challenges, including inflation and changing consumer spending patterns, which have impacted customer traffic and overall sales. Despite these challenges, Sweetgreen aims to leverage its strategic initiatives and operational efficiencies to drive future growth and profitability.
About Sweetgreen, Inc.
Sweetgreen, Inc. is a mission-driven restaurant and lifestyle brand specializing in healthy, plant-forward, and sustainably sourced food. Operating over 246 locations across the U.S., it offers customizable salads, bowls, and seasonal menus through dine-in, digital, delivery, and catering channels. The company emphasizes transparency, innovation, and community impact, leveraging proprietary technology and a strong supply chain to promote healthier communities and environmentally conscious eating.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.