Core Insights - Sweetgreen is selling its automated kitchen technology, Spyce, to Wonder for $186.4 million to address significant consumer pullback and financial losses [3][8] - The company reported a loss of $36 million in Q3, with negative margins of 21%, indicating a decline in same-store sales over the past three quarters [3][8] - The sale will allow Sweetgreen to continue using the Infinite Kitchen technology in its restaurants, which is crucial for its growth strategy [6][8] Financial Performance - Sweetgreen experienced a significant contraction in same-store sales in Q2 and Q3, leading to a total loss of $36 million in Q3 [3][8] - The company aims to reinvest the proceeds from the sale of Spyce to focus on growth and profitability after three consecutive quarters of declining sales [8] Strategic Moves - To mitigate financial challenges, Sweetgreen has reduced its workforce by 10% and discontinued the operationally complex Ripple Fries [4] - The Infinite Kitchen technology, acquired from Spyce for approximately $70 million in 2021, has been a key part of Sweetgreen's strategy for over four years [4][5] - Sweetgreen has established supply and licensing agreements with Spyce to ensure continued deployment of Infinite Kitchens across its restaurants [6] Industry Context - Wonder, the acquiring company, is rapidly scaling its operations and has made significant acquisitions, including Grubhub for $650 million and Blue Apron [7] - Wonder's strategy positions it as a tech-driven food platform, integrating robotics and infrastructure to enhance its service offerings [7]