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]

Financial Performance - Total revenue for Q2 2025 was $185.6 million, a slight increase of 0.5% compared to $184.6 million in Q2 2024[5] - Net loss for Q2 2025 was $(23.2) million, compared to $(14.5) million in the prior year[9] - Adjusted EBITDA was $6.4 million, down from $12.4 million in the prior year, with an Adjusted EBITDA Margin of 3.5% compared to 6.7%[10] - The net loss for the thirteen weeks ended June 29, 2025, was $23,158,000, compared to a net loss of $14,460,000 for the same period in 2024, reflecting an increase in losses of approximately 60.5%[30] - Net loss for the twenty-six weeks ended June 29, 2025, was $48,197,000, compared to a net loss of $40,527,000 for the same period in 2024, representing an increase of 41.2%[35] Sales and Revenue Metrics - Same-Store Sales Change decreased by 7.6%, compared to an increase of 9.3% in the prior year period[5] - Average Unit Volume (AUV) was $2.8 million, down from $2.9 million in the prior year period[5] - Sweetgreen reported revenue of $185,583,000 for the thirteen weeks ended June 29, 2025, a slight increase from $184,641,000 for the same period in 2024, representing a year-over-year growth of 0.5%[30] - For the twenty-six weeks ended June 29, 2025, Sweetgreen reported revenue of $351,887,000, up from $342,491,000 in the same period of 2024, indicating a growth of 2.0%[33] - Future Same-Store Sales Change is projected to be between (6)% to (4%) for FY 2025[13] Operational Costs and Profitability - Loss from operations was $(26.4) million, with a loss from operations margin of (14.2)%, compared to $(16.2) million and (8.8)% in the prior year[5] - Restaurant-Level Profit was $35.1 million, with a Restaurant-Level Profit Margin of 18.9%, down from $41.5 million and 22.5% in the prior year[5] - Total restaurant operating costs for the same period were $150,458,000, which accounted for 81.1% of revenue, compared to 77.5% in the prior year[30] - Restaurant-Level Profit for the twenty-six weeks ended June 29, 2025, was $64,812,000, down from $70,056,000 in the same period of 2024, a decrease of 7.7%[38] Digital Revenue - Total Digital Revenue Percentage increased to 60.8%, while Owned Digital Revenue Percentage rose to 33.4%, compared to 55.7% and 30.5% respectively in the prior year[5] - Total Digital Revenue Percentage for the twenty-six weeks ended June 29, 2025, was 60.3%, up from 57.2% in the same period of 2024[37] Cash and Liabilities - The total liabilities as of June 29, 2025, were $408,585,000, a slight decrease from $410,613,000 as of December 29, 2024[28] - Sweetgreen's accumulated deficit increased to $923,555,000 as of June 29, 2025, compared to $875,358,000 at the end of the previous year[28] - The company had cash and cash equivalents of $168,452,000 as of June 29, 2025, down from $214,789,000 as of December 29, 2024[28] Expenses - General and administrative expenses for the thirteen weeks ended June 29, 2025, were $34,505,000, which is 18.6% of revenue, compared to 21.2% in the prior year[30] Future Plans - The company plans to open at least 40 Net New Restaurants in FY 2025, with a revenue guidance of $700 million to $715 million[13] - The company opened 14 new restaurants in the twenty-six weeks ended June 29, 2025, compared to 10 new openings in the same period of 2024[37] Cash Flow - Cash flows from operating activities resulted in a net cash used of $2,665,000 for the twenty-six weeks ended June 29, 2025, compared to net cash provided of $22,542,000 in the same period of 2024[35] - Net cash used in investing activities was $44,533,000 for the twenty-six weeks ended June 29, 2025, compared to $36,275,000 in the same period of 2024, an increase of 22.8%[35] - The net decrease in cash and cash equivalents and restricted cash for the twenty-six weeks ended June 29, 2025, was $44,778,000, compared to a decrease of $12,197,000 in the same period of 2024[35] Supply Chain and Mission - The company continues to focus on building a transparent supply chain and investing in local farmers, which aligns with its mission to connect people to real food[24]

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].

Company Performance - Sweetgreen, Inc. closed at $13.72, reflecting a -7.17% change from the previous day, underperforming the S&P 500 which gained 0.02% [1] - Over the past month, Sweetgreen's shares appreciated by 8.76%, outperforming the Retail-Wholesale sector's gain of 4.9% and the S&P 500's gain of 4.93% [1] Upcoming Earnings Report - Sweetgreen is scheduled to release its earnings on August 7, 2025, with projected EPS of -$0.12, indicating a 7.69% increase compared to the same quarter last year [2] - The consensus estimate for revenue is $191.54 million, showing a 3.73% growth compared to the corresponding quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at -$0.65 per share and revenue at $739.04 million, reflecting changes of +17.72% and +9.19% respectively from the previous year [3] - Analysts' estimate revisions are crucial as they indicate changing business trends, with positive revisions suggesting optimism about profitability [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Sweetgreen at 4 (Sell) [5] - Over the past month, the Zacks Consensus EPS estimate has decreased by 5.11% [5] Industry Context - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 169, placing it in the bottom 32% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

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]

Company Performance - Sweetgreen, Inc. closed at $14.55, reflecting a -2.22% change from the previous day, underperforming the S&P 500 which had a daily loss of 0.11% [1] - Over the past month, Sweetgreen's shares increased by 10.55%, outperforming the Retail-Wholesale sector's gain of 2.53% and the S&P 500's gain of 5.17% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of -$0.11, which is a 15.38% increase compared to the same quarter last year [2] - Revenue is projected to be $193.6 million, reflecting a 4.85% increase from the equivalent quarter last year [2] Full Year Projections - For the full year, earnings are projected at -$0.63 per share and revenue at $744.76 million, indicating changes of +20.25% and +10.04% respectively from the prior year [3] - Analysts' estimate revisions are crucial as they indicate changing business trends, with positive revisions suggesting optimism about profitability [3] Industry Context - The Retail - Restaurants industry, part of the Retail-Wholesale sector, currently holds a Zacks Industry Rank of 148, placing it in the bottom 41% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Group 1 - Sweetgreen Inc (NYSE:SG) stock has declined 4.5% to $14.21 after TD Cowen downgraded the restaurant chain to "hold" from "buy" and reduced its price target from $25 to $15, citing that same-store sales are unlikely to normalize until 2026 and that urban presence is pressured by competition and a plateaued return to office dynamics [1] - Sweetgreen is experiencing its worst single-day percentage drop since June 5, with shares down more than 56% in 2025 and wrapping up their third consecutive quarterly loss, marking the worst quarter since December 2022 [2] - Despite the downgrade, eight out of 14 brokerages covering Sweetgreen maintain "buy" or better ratings, with a consensus 12-month price target of $22.27, indicating a 57% premium to the current stock price [3] Group 2 - A shift in sentiment among options traders is noted, with a 50-day call/put volume ratio of 3.07, ranking higher than 95% of readings from the past year, which could present additional headwinds for the stock [4] - There is a notable increase in put options trading, with 5,057 puts traded, six times the intraday average volume, compared to 2,566 calls, indicating a bearish sentiment shift [5]