Sweetgreen(US:SG)2025-11-06 21:21Financial Performance - Total revenue for Q3 2025 was $172.4 million, a decrease of 0.6% compared to Q3 2024[5] - Net loss for Q3 2025 was $(36.1) million, compared to $(20.8) million in the prior year, with a net loss margin of (21.0)%[9] - Adjusted EBITDA was $(4.4) million, a decline from $6.8 million in the prior year, with an Adjusted EBITDA Margin of (2.5)%[10] - For the thirty-nine weeks ended September 28, 2025, revenue increased to $524.3 million, up 1.5% from $515.9 million in the same period of 2024[35] - Net loss for the thirty-nine weeks ended September 28, 2025, was $84,343,000, compared to a net loss of $61,343,000 for the same period in 2024, representing a 37.5% increase in losses[37] Sales and Traffic - Same-Store Sales Change was (9.5)%, down from a positive 5.6% in the prior year period, reflecting an 11.7% decrease in traffic[6] - Same-Store Sales Change for the thirteen weeks ended September 28, 2025, was -9.5%, compared to a positive change of 5.6% in the same period of 2024[39] Profitability Metrics - Restaurant-Level Profit was $22.5 million, with a margin of 13.1%, down from $34.9 million and 20.1% in the prior year[5] - Restaurant-Level Profit for the thirty-nine weeks ended September 28, 2025, was $87,326,000, down from $104,997,000 in the same period of 2024, reflecting a decrease of 16.9%[40] - Loss from operations for the thirteen weeks ended September 28, 2025, was $(36,274,000), compared to $(21,175,000) for the same period in 2024, marking a 71.5% increase in operational losses[40] Expenses - General and administrative expenses were $30.9 million, or 17.9% of revenue, down from $36.8 million, or 21.2% of revenue in the prior year[8] - Total restaurant operating costs for the same period were $149.9 million, representing 86.9% of revenue, up from 79.9% in the prior year[32] - The total operating expenses for the thirty-nine weeks ended September 28, 2025, were $178.6 million, which is 34.1% of revenue, compared to 32.8% in the prior year[35] Digital Revenue - Total Digital Revenue Percentage increased to 61.8%, with Owned Digital Revenue Percentage at 35.3%, up from 55.1% and 29.2% respectively in the prior year[5] - Total Digital Revenue Percentage increased to 61.8% for the thirteen weeks ended September 28, 2025, up from 55.1% in the same period of 2024[39] Future Plans - The company plans to open 15-20 new restaurants in fiscal year 2026, with about half featuring Infinite Kitchen units[11] - The company opened 20 new restaurants in the thirty-nine weeks ended September 28, 2025, compared to 15 new openings in the same period of 2024, reflecting a 33.3% increase in expansion[39] Cash Flow and Assets - Cash and cash equivalents decreased to $130.0 million as of September 28, 2025, from $214.8 million at the end of 2024[30] - The company had total assets of $824.8 million as of September 28, 2025, down from $856.8 million at the end of 2024[30] - Net cash used in operating activities for the thirty-nine weeks ended September 28, 2025, was $(4,042,000), a significant decline from $37,271,000 provided in the same period of 2024[37] - Net cash used in investing activities for the thirty-nine weeks ended September 28, 2025, was $(82,033,000), compared to $(63,199,000) in the same period of 2024, indicating a 29.8% increase in cash outflow[37] Company Position - Sweetgreen's accumulated deficit increased to $959.7 million as of September 28, 2025, compared to $875.4 million at the end of 2024[30] - Sweetgreen's restaurant-level profit margin and adjusted EBITDA are not directly indicative of overall company performance due to various exclusions in their calculations[27] - The company continues to focus on building a transparent supply chain and investing in local farmers to enhance community engagement and operational efficiency[26]