Core Viewpoint - Sweetgreen's shares fell over 25% after the company revised its 2025 revenue outlook downward for the second consecutive quarter, attributing the decline to issues with its loyalty program, weak consumer sentiment, tariff impacts, and operational challenges [1][2]. Revenue and Sales Outlook - For the full year 2025, Sweetgreen now anticipates revenue between $700 million and $715 million, a decrease from previous estimates of $740 million to $760 million in May and $760 million to $780 million in February [1]. - The company projects negative same-store sales for the year, estimating a decline of 4% to 6%, down from an initial expectation of single-digit growth [2]. Financial Performance - Sweetgreen reported a second-quarter loss of $0.20 per share, worse than the expected loss of $0.12, with revenue of $186 million compared to the estimate of $192 million [2]. - Same-store sales fell by 7.6% in the quarter, contrasting with a 9.3% increase in the same quarter last year, and analysts had anticipated a decline of 5.5% [3]. Loyalty Program Impact - The transition from the Sweetgreen+ subscription to the new SG Rewards program resulted in a 250 basis-point headwind to same-store sales in the second quarter [4]. - The company experienced a revenue decline from a small but frequent cohort of Sweetgreen+ customers, although management believes this impact will be temporary [4]. Operational Focus - Company leadership is prioritizing improvements in customer satisfaction and store operations, with only one-third of restaurants meeting performance standards [5]. - The new COO, Jason Cochran, is expected to lead initiatives aimed at enhancing operational efficiency through a program called Project One Best Way, which focuses on improving speed, food standards, and portion sizes [5]. Consumer Sentiment - Ongoing pressure on consumer spending has been more prolonged than anticipated, contributing to the company's performance challenges [6]. - Management noted that the overall consumer sentiment is not favorable, impacting sales and growth [6].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Delaware 27-1159215 (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation or organization) 3102 36th Street Los Angeles, CA 90018 x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the trans ...

Core Viewpoint - Sweetgreen, Inc. reported a quarterly loss of $0.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.12, marking an earnings surprise of -66.67% [1][2] Financial Performance - The company posted revenues of $185.58 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.11% and showing a slight increase from $184.64 million a year ago [2] - Over the last four quarters, Sweetgreen has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Performance - Sweetgreen shares have declined approximately 61.6% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current Zacks Rank for Sweetgreen is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $193.25 million, and for the current fiscal year, it is -$0.65 on revenues of $739.04 million [7] - The trend of estimate revisions for Sweetgreen has been unfavorable leading up to the earnings release [6] Industry Context - The Retail - Restaurants industry, to which Sweetgreen belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported total sales of $185.6 million, a slight increase from $184.6 million in Q2 2024, with a same-store sales decline of 7.6% [5][17] - Restaurant level margin for the quarter was 18.9%, down from 22.5% year-over-year, primarily due to sales deleverage and tariff impacts [22] - The net loss for the quarter was $23.2 million, compared to a loss of $14.5 million in the prior year [24][25] - Adjusted EBITDA was $6.4 million, down from $12.4 million in the prior year [25] Business Line Data and Key Metrics Changes - The average unit volume in Q2 was $2.8 million, with nine new restaurant openings, four of which were Infinite Kitchens [18] - The company closed two older restaurants in New York City, redirecting volume to newer locations, which saw same-store sales increase by 15% to 20% shortly after [20] Market Data and Key Metrics Changes - The company experienced a 2.5% benefit from menu price increases, but a negative 10.1% impact from traffic and mix [18] - The Northeast market continued to show pronounced pressure, aligning with broader industry trends [62][94] Company Strategy and Development Direction - The company plans to open at least 40 new restaurants in 2025 and enter four new markets: Arkansas, Sacramento, Phoenix, and Cincinnati [21] - The focus remains on enhancing the value proposition through menu innovation and a revamped loyalty program [8][26] - The company is implementing Project One Best Way to improve operational excellence and consistency across restaurants [12][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging quarter due to external headwinds and internal transitions, but expressed confidence in the recovery plan [6][26] - There are early signs of improvement in same-store sales and guest frequency due to the rollout of seasonal menus and the loyalty program [30][57] - Management emphasized the importance of delivering excellent guest experiences as a key driver for future growth [31][79] Other Important Information - The company is seeing improvements in labor costs and team member retention, with head coach stability at an all-time high [43][44] - The transition to the new loyalty program created a temporary headwind, but management expects it to become a tailwind as customer engagement improves [72][74] Q&A Session Summary Question: Are there signs of same-store sales improvement in Q3? - Management confirmed modest improvement in same-store sales due to the seasonal menu rollout and loyalty program [30] Question: What are the biggest operational issues currently? - Management identified throughput and food quality as key focus areas, with ongoing efforts to improve these metrics [31][36] Question: Can you elaborate on labor cost improvements? - Management noted that labor costs per store week have improved due to better workforce management and lower turnover rates [41][43] Question: Are there plans to slow down development to focus on same-store sales? - Management expressed strong conviction in long-term growth and plans to maintain the development pipeline while ensuring operational readiness [51] Question: What is driving the restaurant level margin guidance down? - Management indicated that the primary driver is sales deleverage, with some impact from increased portion sizes [53] Question: How is the loyalty program performing? - Management reported that the loyalty program is seeing steady growth in membership and frequency, with expectations for it to become a positive contributor [72][74] Question: Is there a degradation in price value perception? - Management believes the issue is more about execution rather than price value perception, emphasizing the need for consistent delivery of quality experiences [78][79]

Second quarter 2025 financial highlights For the second quarter of fiscal year 2025, compared to the second quarter of fiscal year 2024: Sweetgreen, Inc. Announces Second Quarter 2025 Financial Results LOS ANGELES--(BUSINESS WIRE)-- Sweetgreen, Inc. (NYSE: SG) (the "Company"), the mission-driven, next- generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its second fiscal quarter ended June 29, 2025. • Total revenue was $185.6 million, versus $18 ...

Core Viewpoint - The market anticipates Sweetgreen, Inc. (SG) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Financial Expectations - Sweetgreen is expected to post a quarterly loss of $0.12 per share, reflecting a year-over-year change of +7.7% [3]. - Revenues are projected to be $191.54 million, which is an increase of 3.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 6.41% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Sweetgreen is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -26.76% [12]. Earnings Surprise Prediction - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. - Sweetgreen currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - Sweetgreen has not surpassed consensus EPS estimates in any of the last four quarters, indicating a trend of underperformance [14]. - In the last reported quarter, the company was expected to post a loss of $0.21 per share and did not deliver any surprise, matching the expectation exactly [13]. Industry Comparison - Dine Brands, another player in the Zacks Retail - Restaurants industry, is expected to report earnings of $1.49 per share for the same quarter, reflecting a year-over-year change of -12.9% [18]. - Dine Brands' revenues are expected to be $222.12 million, up 7.7% from the previous year, with an Earnings ESP of -3.36% [19].

Sweetgreen, Inc. (SG) closed at $13.72 in the latest trading session, marking a -7.17% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.02% for the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.33%. Shares of the company have appreciated by 8.76% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.9%, and the S&P 500's gain of 4.93%.The investment community will be cl ...

Group 1 - The article discusses the role of a Wealth Management Advisor and Portfolio Analyst, emphasizing the use of financial, technical, and macroeconomic analysis to support clients and develop investment theses [1][3]. - It highlights the importance of identifying both short-term trends and long-term opportunities in the investment landscape [1]. - The advisor aims to find winning investments to grow portfolios while mitigating risks through various valuation methods and modeling techniques [1]. Group 2 - The article includes a disclosure indicating a beneficial long position in the shares of specific companies, SG and CAVA, through stock ownership or derivatives [2]. - It clarifies that the views expressed are personal opinions and do not necessarily reflect the views of the advisor's employer, Meridian Wealth Management [3]. - The content is intended for informational purposes only and should not be considered as financial advice or a recommendation for specific investments [3][4].

Company Performance - Sweetgreen, Inc. (SG) closed at $13.71, reflecting a +2.85% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.28% [1] - The stock has increased by 1.83% over the past month, while the Retail-Wholesale sector gained 0.87% and the S&P 500 rose by 4.37% [1] Upcoming Earnings - Sweetgreen is expected to report an EPS of -$0.11, which is a 15.38% improvement from the same quarter last year [2] - The consensus estimate for quarterly revenue is $193.6 million, representing a 4.85% increase from the previous year [2] Fiscal Year Projections - For the fiscal year, earnings are projected at -$0.63 per share and revenue at $744.76 million, indicating increases of +20.25% and +10.04% respectively from the prior year [3] - Recent adjustments to analyst estimates suggest a favorable outlook on the company's business health and profitability [3] Zacks Rank and Industry Performance - Sweetgreen currently holds a Zacks Rank of 4 (Sell), with a recent 0.96% decline in the Zacks Consensus EPS estimate [5] - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 160, placing it in the bottom 36% of all industries [6]

Company Performance - Sweetgreen, Inc. closed at $14.69, with a daily increase of +2.01%, outperforming the S&P 500's gain of 0.83% [1] - Over the past month, Sweetgreen's shares have decreased by 2.7%, underperforming the Retail-Wholesale sector's increase of 2.23% and the S&P 500's increase of 4.99% [1] Earnings Expectations - Analysts expect Sweetgreen to report earnings of -$0.11 per share, reflecting a year-over-year growth of 15.38% [2] - The consensus estimate for quarterly revenue is $193.6 million, which is an increase of 4.85% from the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at -$0.63 per share, indicating a growth of +20.25% year-over-year [3] - Revenue for the fiscal year is estimated at $744.76 million, representing a growth of +10.04% from the previous year [3] Analyst Estimates and Outlook - Recent changes to analyst estimates for Sweetgreen reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Sweetgreen at 3 (Hold) [6] Industry Context - Sweetgreen operates within the Retail - Restaurants industry, which holds a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]