NYSE:SG
Sweetgreen, Inc.
A digitally enabled fast-casual salad chain focused on sustainability and rapid expansion across major US markets.
Key Metrics
Investment Thesis
Bull Case
Investors may view Sweetgreen as an attractive play on the long-term secular shift toward healthier eating and sustainability, supported by a resilient revenue trend that has grown from $470.1M in 2022 to nearly $680M recently. The company's strong digital infrastructure provides high-margin opportunities beyond traditional dining hours, positioning it for future profitability as its network matures.
Bear Case
The persistent net losses and deepening retained earnings deficit suggest that the current growth model is capital-intensive and may not be sustainable without significant dilution or external financing. With operating cash flow remaining negative and heavy investments in fixed assets, the stock carries substantial downside risk if consumer spending slows or costs rise further.
About Sweetgreen, Inc.
Sweetgreen operates as a fast-casual restaurant chain specializing in sustainable, locally sourced salads and bowls available in the United States. The company leverages a direct-to-consumer digital platform to drive order growth while maintaining its core focus on fresh ingredients and eco-friendly operations.
Analysis
Management Discussion
While revenue grew to $679.5M in 2025, the company reported a significant net loss of -$134.1M, reflecting heavy capital expenditures of $106.5M for store build-outs and expansion. The negative operating cash flow of -$12.7M combined with a retained earnings deficit of -$1.01B highlights the aggressive growth strategy prioritizing market share over immediate profitability.
Industry Overview
The fast-casual dining sector is evolving rapidly with consumers demanding higher quality ingredients, transparency, and convenience through mobile apps. Sweetgreen competes against both traditional salad chains like Panera and emerging health-focused brands that are also investing heavily in digital capabilities and supply chain sustainability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $470.1M | $584.0M | $676.8M | $679.5M |
| Cost of Revenue | $400.8M | $482.1M | $543.9M | $575.9M |
| Gross Profit | $69.3M | $101.9M | $132.9M | $103.5M |
| Operating Expenses | $262.6M | $224.3M | $228.7M | $242.8M |
| Operating Income | $-193.3M | $-122.3M | $-95.7M | $-139.3M |
| R&D | $2.0M | $1.2M | $1.0M | $1.0M |
| G&A | $187.4M | $146.8M | $149.9M | $143.4M |
| Stock-Based Comp | $78.7M | $49.5M | $39.0M | $36.5M |
| D&A | $46.5M | $59.5M | $67.3M | $71.5M |
| Depreciation | $38.8M | $49.5M | $56.4M | $61.2M |
| Amortization | $224.0K | $880.0K | $914.0K | $1.0M |
| Other OpEx | $73.3M | $76.3M | $77.7M | $98.4M |
| Non-Operating Income | $4.2M | $9.3M | $4.0M | $5.3M |
| Interest Expense | $83.0K | $128.0K | $256.0K | $19.0K |
| Interest Income | $5.1M | $12.9M | $10.9M | $6.5M |
| Pre-Tax Income | $-189.1M | $-113.0M | $-91.7M | $-134.0M |
| Income Tax | $1.3M | $379.0K | $-1.3M | $46.0K |
| Continuing Ops | $-190.4M | $-113.4M | $-90.4M | $-134.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-190.4M | $-113.4M | $-90.4M | $-134.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-190.4M | $-113.4M | $-90.4M | $-134.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $346.1M | $276.1M | $234.5M | $129.7M |
| Cash & Equivalents | $331.6M | $257.2M | $214.8M | $89.2M |
| Accounts Receivable | $3.2M | $3.5M | $5.0M | $5.2M |
| Inventory | $1.4M | $2.1M | $2.0M | $2.4M |
| Other Current Assets | $9.9M | $13.3M | $12.7M | $32.9M |
| Long-Term Assets | $562.8M | $580.4M | $622.2M | $658.4M |
| PP&E (Net) | $235.3M | $266.9M | $296.5M | $326.9M |
| Goodwill | $36.0M | $36.0M | $36.0M | $27.8M |
| Operating Leases | $254.1M | $244.0M | $257.5M | $284.3M |
| Other LT Assets | $37.5M | $33.6M | $32.3M | $19.5M |
| Total Assets | $908.9M | $856.6M | $856.8M | $788.1M |
| Current Liabilities | $72.5M | $91.6M | $115.8M | $118.7M |
| Accounts Payable | $12.2M | $17.4M | $18.7M | $19.9M |
| Current Leases | $29.6M | $31.4M | $41.8M | $41.6M |
| Deferred Revenue | $2.0M | $2.8M | $4.4M | $7.2M |
| Other Current Liab | $6.6M | $19.1M | $24.4M | $16.3M |
| Long-Term Liabilities | $295.2M | $282.4M | $294.8M | $313.3M |
| LT Operating Leases | $271.1M | $271.4M | $288.9M | $312.9M |
| Other LT Liab | $24.1M | $10.9M | $5.8M | $423.0K |
| Total Liabilities | $367.7M | $374.0M | $410.6M | $432.0M |
| Shareholders' Equity | $541.2M | $482.6M | $446.1M | $356.1M |
| Paid-In Capital | $1.21B | $1.27B | $1.32B | $1.37B |
| Retained Earnings | $-671.6M | $-785.0M | $-875.4M | $-1.01B |
| Total L&E | $908.9M | $856.6M | $856.8M | $788.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-190.4M | $-113.4M | $-90.4M | $-134.1M |
| Non-Cash Adjustments | $164.6M | $139.6M | $144.0M | $162.5M |
| Working Capital Changes | $-17.3M | $276.0K | $-10.2M | $-41.2M |
| Cash from Operations | $-43.2M | $26.5M | $43.4M | $-12.7M |
| Capital Expenditures | $96.9M | $89.7M | $84.5M | $106.5M |
| Cash from Investing | $-102.0M | $-95.7M | $-92.2M | $-114.3M |
| Cash from Financing | $4.6M | $-5.2M | $8.9M | $2.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-140.6M | $-74.4M | $-39.9M | $-124.1M |
| Beginning Cash | $472.3M | $331.7M | $257.4M | $217.4M |
| Ending Cash | $331.7M | $257.4M | $217.4M | $93.3M |
Frequently Asked Questions
How does Sweetgreen, Inc. make money?
Core restaurant operations generating revenue from in-store and mobile orders, a direct-to-consumer online ordering platform serving home customers, and catering services for corporate events and private gatherings.
What are the main risks for SG?
Sensitivity to inflationary pressures on fresh food costs and labor rates, potential dilution from equity issuances needed to fund rapid store expansion, operational scaling challenges in maintaining quality consistency across new locations, and macroeconomic shifts affecting discretionary dining spending.
What is SG's competitive advantage?
Strong brand loyalty driven by a commitment to sustainable sourcing and transparent supply chains, a robust proprietary technology stack enabling seamless digital ordering and delivery, and an expanding footprint in high-traffic urban locations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.