Sweetgreen, Inc. reported a slight increase in revenue for the second quarter of fiscal 2025, with total revenue reaching $185.6 million, up 0.5% from $184.6 million in the same period last year. For the first half of the fiscal year, revenue increased by 2.7% to $351.9 million compared to $342.5 million in the prior year. Despite this revenue growth, the company experienced a significant net loss of $23.2 million for the quarter, a 60.2% increase from a net loss of $14.5 million in the same quarter of the previous year. The loss for the first half of the year also widened to $48.2 million from $40.5 million.

The company's operating costs rose, with total restaurant operating costs increasing by 5.1% to $150.5 million in the second quarter, driven by higher food, labor, and occupancy expenses. General and administrative expenses decreased by 12% to $34.5 million, reflecting a reduction in stock-based compensation and management salaries. However, impairment and closure costs surged to $5.3 million, compared to just $117,000 in the prior year, contributing to the overall increase in losses.

Sweetgreen continued its expansion strategy, opening nine new restaurants in the second quarter and 14 in the first half of the fiscal year, bringing the total to 260 locations across 22 states and Washington, D.C. The company plans to open at least 40 new restaurants in fiscal 2025, including 20 equipped with its new Infinite Kitchen technology. This expansion is part of Sweetgreen's strategy to enhance its market presence and improve operational efficiency.

The company also launched its SG Rewards loyalty program, which has contributed to a rise in digital sales. Total digital revenue accounted for 60.8% of overall sales in the second quarter, up from 55.7% a year earlier. However, the company reported a negative same-store sales change of 7.6%, attributed to a decline in customer traffic and product mix, despite a slight benefit from menu price increases.

Looking ahead, Sweetgreen anticipates continued challenges from macroeconomic conditions, including inflation and supply chain constraints, which may impact consumer spending and operational costs. The company remains focused on mitigating these challenges through strategic pricing and operational efficiencies while continuing to expand its restaurant footprint.

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.

This description was generated via AI from an annual report. Updated 8 months ago.

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