Sweetgreen(US:SG)2025-11-07 01:01Financial Performance - Revenue for the thirteen weeks ended September 28, 2025, was $172,393,000, a decrease of 0.6% compared to $173,431,000 for the same period in 2024[25] - 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[31] - Total restaurant operating costs for the thirteen weeks ended September 28, 2025, were $149,879,000, an increase of 8.3% from $138,490,000 in the same period in 2024[25] - Cash and cash equivalents at the end of the period were $134,107,000, down from $237,263,000 at the end of the same period in 2024, indicating a decrease of 43.5%[31] - The Company recorded a net loss of $36,146,000 for the thirteen weeks ended September 28, 2025, resulting in a basic and diluted loss per share of $0.31[97] Expansion and Growth - The company opened 6 new restaurants in the thirteen weeks and 20 new restaurants in the thirty-nine weeks ended September 28, 2025[33] - The company aims to expand its market presence with a total of 266 restaurants across 23 states and Washington, D.C. as of September 28, 2025[33] - The company had 23 facilities under construction as of September 28, 2025, compared to 9 facilities under construction as of December 29, 2024, showing significant expansion efforts[61] Revenue Streams - Revenue from Owned Digital Channels increased to $60.8 million for the thirteen weeks ended September 28, 2025, up 20.3% from $50.6 million in the prior year[46] - In-Store Channel revenue decreased to $65.9 million for the thirteen weeks ended September 28, 2025, down 15.3% from $77.9 million in the same period last year[46] - Revenue recognized from gift card liability for the thirty-nine weeks ended September 28, 2025, was $623,000, compared to $700,000 for the same period in 2024[49] Expenses and Costs - The company incurred $30,900,000 in general and administrative expenses for the thirteen weeks ended September 28, 2025, compared to $36,777,000 in the same period in 2024, a decrease of 16.5%[25] - Stock-based compensation expense for the thirty-nine weeks ended September 28, 2025, was $24,032,000, down from $30,214,000 in the same period in 2024, a decrease of 20.5%[31] - Operating lease costs for the thirty-nine weeks ended September 28, 2025, totaled $53.4 million, compared to $48.2 million for the same period in 2024, marking an increase of approximately 10.6%[68] Impairment and Contingent Considerations - The Company recognized a non-cash impairment charge of $4.3 million for four store locations during the thirteen weeks ended September 28, 2025[56] - The Company recorded non-cash impairment charges of $9.6 million associated with nine store locations for the thirty-nine weeks ended September 28, 2025[57] - Cumulative payments related to contingent consideration reached $23.4 million as of September 28, 2025, with $6.8 million issued in Class A common stock and $16.6 million in cash[53] - The fair value of contingent consideration as of September 28, 2025, was $5.9 million, down from $15.0 million as of December 29, 2024[54] Stock and Equity - The company had 30.5 million shares of common stock reserved for issuance as of September 28, 2025, down from 31.7 million shares as of December 29, 2024[72] - The balance of stock options was 14,035,191 shares, with a weighted average exercise price of $10.65 and an intrinsic value of $18,446,000[81] - The balance of restricted stock units (RSUs) as of September 28, 2025, was 563,811 shares, with a weighted-average grant date fair value of $14.57[86] Legal and Regulatory Matters - The Company is subject to various claims and lawsuits, but does not anticipate that these will materially affect its financial position or operations[102] - The Company has lease commitments under various operating leases, which include contingent rent based on sales exceeding specified thresholds[100] Market Risks - The Company operates solely within the United States and faces market risks including commodity price risks and interest rate risk, with no material changes in exposure reported[231]