CORRECTING and REPLACING Sweetgreen, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

2025 Outlook, second section, third bullet of release should read: Same-Store Sales Change of approximately (5)-(3)% (instead of Same-Store Sales Change of approximately 5-3%).

The updated release reads:

SWEETGREEN, INC. ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2024 FINANCIAL RESULTS

Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its fourth fiscal quarter and fiscal year ended December 29, 2024.

Fourth Quarter 2024 Financial Highlights

For the fourth quarter of fiscal year 2024, compared to the fourth quarter of fiscal year 2023:

Total revenue was $160.9 million versus $153.0 million in the prior year period, an increase of 5%.
Same-Store Sales Change of 4%, versus Same-Store Sales Change of 6% in the prior year period.
AUV of $2.9 million was consistent with the prior year period.
Total Digital Revenue Percentage of 56% and Owned Digital Revenue Percentage of 29%, versus Total Digital Revenue Percentage of 58% and Owned Digital Revenue Percentage of 34% in the prior year period.
Loss from operations was $(31.4) million and loss from operations margin was (20)%, versus loss from operations of $(29.3) million and loss from operations margin of (19)% in the prior year period.
Restaurant-Level Profit1 was $28.0 million and Restaurant-Level Profit Margin was 17%, versus Restaurant-Level Profit of $24.8 million and Restaurant-Level Profit Margin of 16% in the prior year period.
Net loss was $(29.0) million and net loss margin was (18)%, versus net loss of $(27.4) million and net loss margin of (18)% in the prior year period.
Adjusted EBITDA1 was $(0.6) million and Adjusted EBITDA Margin was 0%, versus Adjusted EBITDA of $(1.8) million and Adjusted EBITDA Margin of (1)% in the prior year period.
10 Net New Restaurant Openings versus 1 Net New Restaurant Opening in the prior year period.

Full Year Fiscal 2024 Financial Highlights

For fiscal year 2024 compared to fiscal year 2023:

Total revenue was $676.8 million, versus $584.0 million in the prior fiscal year, an increase of 16%.
Same-Store Sales Change of 6%, versus Same-Store Sales Change of 4% in the prior fiscal year.
AUV of $2.9 million was consistent with the prior year period.
Total Digital Revenue Percentage of 56% and Owned Digital Revenue Percentage of 30%, versus Total Digital Revenue Percentage of 59% and Owned Digital Revenue Percentage of 36% in the prior fiscal year.
Loss from operations was $(95.7) million and loss from operations margin was (14)%, versus loss from operations of $(122.3) million and loss from operations margin of (21)% in the prior fiscal year.
Restaurant-Level Profit1 was $132.9 million and Restaurant-Level Profit Margin was 20%, versus Restaurant-Level Profit of $101.9 million and Restaurant-Level Profit Margin of 17% in the prior fiscal year.
Net loss was $(90.4) million and net loss margin was (13)%, versus net loss of $(113.4) million and net loss margin of (19)% in the prior fiscal year.
Adjusted EBITDA1 was $18.7 million versus Adjusted EBITDA of $(2.8) million in the prior fiscal year and Adjusted EBITDA Margin was 3% versus 0% in the prior year period.
25 Net New Restaurant Openings versus 35 Net New Restaurant Openings in the prior fiscal year.

1 Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Reconciliation of GAAP to Non-GAAP Measures.”

“Our 2024 results exceeded our initial expectations, thanks to the strength of our menu innovation, technology, and overall guest experience,” said Jonathan Neman, Co-Founder and CEO. “In 2025, we’re rolling out a new and improved loyalty program, introducing exciting new menu items, and strategically investing more in marketing to bring more people into our restaurants. By staying focused on delivering an exceptional experience, we’re setting Sweetgreen up to lead—and redefine—fast food for the future.”

“Since our IPO in 2021, we have delivered 4 years of double digit revenue growth and 4 consecutive years of restaurant level margin expansion. In 2024, restaurant-level margin expanded over 200 basis points, and Adjusted EBITDA of $18.7 million improved by $21.5 million over the prior year period,” said Mitch Reback, Chief Financial Officer. “This marks our first full year of Adjusted EBITDA profitability in Sweetgreen’s history, providing a solid foundation to grow and expand in the years to come.”

Results for the fourth quarter ended December 29, 2024:

Total revenue in the fourth quarter of 2024 was $160.9 million, an increase of 5% versus the prior year period, primarily due to additional revenue associated with 26 Net New Restaurant Openings during or subsequent to the fourth quarter of 2023 through the end of the fourth fiscal quarter of 2024 and Same-Store Sales Change of 4% due to menu price increases that were implemented subsequent to the prior year period. These increases were partially offset by a decrease in fiscal year-over-year comparable restaurant sales, which would have been reflected in our Same-Store Sales Change had we not adjusted for the misalignment in our comparable weeks resulting from fiscal year 2023 being a 53-week year.

Our loss from operations margin was (20)% for the fourth quarter of 2024 versus (19)% in the prior year period. Restaurant-Level Profit Margin was 17%, an increase of over 100 basis points versus the prior year period, due to the impact of menu price increases and continued labor optimization, partially offset by the impact of the additional week of revenue in fiscal year 2023.

General and administrative expense was $37.1 million, or 23% of revenue for the fourth quarter of 2024, as compared to $35.5 million, or 23% of revenue in the prior year period. The increase in general and administrative expense was primarily due to an increase in legal settlements, an increase in payroll taxes related to the vesting of the Founders’ performance stock units released during the current year, and an increase in spend across the Sweetgreen Support Center to support our restaurant growth. These increases were partially offset by a decrease in stock-based compensation expense primarily related to the decrease in expense associated with restricted stock units and performance-based restricted stock units issued prior to our IPO.

Net loss for the fourth quarter of 2024 was $(29.0) million, as compared to $(27.4) million in the prior year period. The change was primarily attributable to a $1.7 million increase in impairment and closure costs, a $1.2 million increase in pre-opening costs related to the 10 Net New Restaurant Openings in the current year period versus 1 Net New Restaurant Opening in the prior year period, an increase in general administrative expenses as described above, and an increase in depreciation and amortization associated with additional restaurants. These increases were partially offset by a $3.2 million increase in our Restaurant-Level Profit as described above. Adjusted EBITDA, which excludes stock-based compensation expense and certain other adjustments, was $(0.6) million for the fourth quarter of 2024, as compared to $(1.8) million in the prior year period. This change was primarily due to an increase in Restaurant-Level Profit, as described above.

2025 Outlook

For fiscal year 2025, we are anticipating the following:

At least 40 Net New Restaurant Openings, with 20 featuring the Infinite Kitchen
Revenue ranging from $760 million to $780 million
Same-Store Sales Change between 1-3%
Restaurant-Level Profit Margin of 19.8%-20.5%
Adjusted EBITDA between $32 million to $38 million

For the first quarter of fiscal year 2025, we are anticipating the following:

5 Net New Restaurant Openings
Revenue ranging from $163 million to $166 million
Same-Store Sales Change of approximately (5)-(3)%
Restaurant-Level Profit Margin of 16.4%-16.8%
Adjusted EBITDA between $(3) million to $(1) million

We have not reconciled our expectations as to Restaurant-Level Profit Margin and Adjusted EBITDA to their most directly comparable GAAP measures as a result of uncertainty regarding, and the potential variability of, reconciling items. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to our results computed in accordance with GAAP.

Conference Call

Sweetgreen will host a conference call to discuss its financial results and financial outlook today, February 26, 2025, at 2:00 p.m. Pacific Time. A live webcast of the call can be accessed from Sweetgreen’s Investor Relations website at investor.sweetgreen.com. An archived version of the webcast will be available from the same website after the call.

Forward-Looking Statements

This press release and the related conference call, webcast and presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may relate to, but are not limited to, statements regarding our financial outlook for the first fiscal quarter and full fiscal year 2025, including our expectations regarding the number of Net New Restaurant Openings, revenue, Same-Store Sales Change, Restaurant-Level Profit Margin and Adjusted EBITDA; and our plans to introduce a new loyalty program, innovate new menu items and increase paid media. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “are confident that,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.

Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release and the related conference call may not occur and actual results could differ materially from those described in the forward-looking statements. These risks and uncertainties include our ability to compete effectively, uncertainties regarding changes in economic conditions and macroeconomic, geopolitical and other major events, which may include pandemics and disease outbreaks, and the customer behavior trends they drive, our ability to open new restaurants, our ability to effectively identify and secure appropriate sites for new restaurants, our ability to expand into new markets and the risks such expansion presents, the impact of severe weather conditions or natural disasters on our restaurant sales and results of operations, the profitability of new restaurants we may open, and the impact of any such openings on sales at our existing restaurants, our ability to preserve the value of our brand, food safety and foodborne illness concerns, our ability to achieve profitability in the future, our ability to build, deploy, and maintain our proprietary kitchen automation technology, known as the Infinite Kitchen, in a timely and cost-effective manner, the effect on our business of increases in labor costs, labor shortages, and difficulties in hiring, training, rewarding and retaining a qualified workforce, our ability to identify, complete, and integrate acquisitions, the effect on our business of governmental regulation and changes in employment laws, the effect on our business of expenses and potential management distraction associated with litigation, potential privacy and cybersecurity incidents, the effect on our business of restrictions and costs imposed by privacy, data protection, and data security laws, regulations, and industry standards, and our ability to enforce our rights in our intellectual property. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company's expectations is included in our SEC reports, including in our Annual Report on Form 10-K to be filed for the fiscal year ended December 29, 2024 and subsequently filed quarterly reports on Form 10-Q. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov. Information contained on, or that is referenced or can be accessed through, our website does not constitute part of this document and inclusions of any website addresses herein are inactive textual references only.

Glossary

Average Unit Volume (“AUV”) - AUV is defined as the average trailing revenue for the prior four fiscal quarters for all restaurants in the Comparable Restaurant Base.
Comparable Restaurant Base - Comparable Restaurant Base for any measurement period is defined as all restaurants that have operated for at least twelve full months as of the end of such measurement period, other than any restaurants that had a material, temporary closure during the relevant measurement period. A restaurant is considered to have had a material, temporary closure if it had no operations for a consecutive period of at least 30 days. Fiscal year 2023 was a 53-week year, in order to provide a measurement period that is consistent with comparable periods that span a 52-week year, rather than simply excluding the extra week, we applied an averaging methodology to the last period of fiscal 2023 to adjust for the extra week. One restaurant was excluded from our Comparable Restaurant Base as of the end of fiscal year 2024. Such adjustment did not result in a material change to our key performance metrics. No restaurants were excluded from our Comparable Restaurant Base as of the end of fiscal year 2023.
Net New Restaurant Openings - Net New Restaurant Openings reflect the number of new Sweetgreen restaurant openings during a given reporting period, net of any permanent Sweetgreen restaurant closures during the same period.
Same-Store Sales Change - Same-Store Sales Change reflects the percentage change in year-over-year revenue for the relevant fiscal period for all restaurants that have operated for at least 13 full fiscal months as of the end of such fiscal period excluding the 53rd week in any 53-week fiscal year; provided, that for any restaurant that has had a temporary closure (which historically has been defined as a closure of at least five days during which the restaurant would have otherwise been open) during any prior or current fiscal month, such fiscal month, as well as the corresponding fiscal month for the prior or current fiscal year, as applicable, will be excluded when calculating Same-Store Sales Change for that restaurant. Fiscal year 2023 was a 53-week year, which resulted in a misalignment in our comparable weeks in fiscal year 2024. To adjust for this misalignment, in calculating Same-Store Sales Change for each fiscal quarter and the full fiscal year 2024, we shifted each week within fiscal year 2023 forward by one week to better align with the 2024 calendar year, specifically to match the timing of holidays and achieve a more accurate comparable Same-Store Sales Change to the prior period. During fiscal year 2024, we excluded eight restaurants from our Same-Store Sales Change to reflect the temporary closure of such restaurants. During fiscal year 2023, we excluded two restaurants from our Same-Store Sales Change to reflect the temporary closure of such restaurants. These adjustments, did not result in a material change to Same-Store Sales Change for fiscal years 2024 or 2023.
Total Digital Revenue Percentage and Owned Digital Revenue Percentage - Our Total Digital Revenue Percentage is the percentage of our revenue attributed to purchases made through our Total Digital Channels. Our Owned Digital Revenue Percentage is the percentage of our revenue attributed to purchases made through our Owned Digital Channels.

Non-GAAP Financial Measures

In addition to our consolidated financial statements, which are presented in accordance with GAAP, we present certain non-GAAP financial measures, including Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. We believe these measures are useful to investors and others in evaluating our performance because these measures:

facilitate operating performance comparisons from period to period by isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. These potential differences may be caused by variations in capital structures (affecting interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or NOL), and the age and book depreciation of facilities and equipment (affecting relative depreciation expense);
are widely used by analysts, investors, and competitors to measure a company’s operating performance; are used by our management and board of directors for various purposes, including as measures of performance and as a basis for strategic planning and forecasting; and
are used internally for a number of benchmarks including to compare our performance to that of our competitors.

We define Restaurant-Level Profit as loss from operations adjusted to exclude general and administrative expense, depreciation and amortization, pre-opening costs, loss on disposal of property and equipment, and, in certain periods, impairment and closure costs and restructuring charges. Restaurant-Level Profit Margin is Restaurant-Level Profit as a percentage of revenue. As it excludes general and administrative expense, which is primarily attributable to our corporate headquarters, which we refer to as our Sweetgreen Support Center, we evaluate Restaurant-Level Profit and Restaurant-Level Profit Margin as a measure of profitability of our restaurants.

We define Adjusted EBITDA as net loss adjusted to exclude income tax (benefit) expense, interest income, interest expense, depreciation and amortization, stock-based compensation expense, loss on disposal of property and equipment, other (income) expense, Spyce acquisition costs, our enterprise resource planning system (“ERP”) implementation and related costs, legal settlements, and certain other expenses during the period that management determines are not indicative of ongoing operating performance and, in certain periods, impairment and closure costs, restructuring charges, and employer portion of founder performance stock unit payroll taxes. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue.

Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. In particular, Restaurant-Level Profit and Adjusted EBITDA should not be viewed as substitutes for, or superior to, loss from operations or net loss prepared in accordance with GAAP as a measure of profitability. Some of these limitations are:

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Restaurant-Level Profit and Adjusted EBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
Restaurant-Level Profit and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
Restaurant-Level Profit and Adjusted EBITDA do not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to us;
Restaurant-Level Profit and Adjusted EBITDA do not consider the potentially dilutive impact of stock-based compensation;
Restaurant-Level Profit is not indicative of overall results of the Company and does not accrue directly to the benefit of stockholders, as corporate-level expenses are excluded;
Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as stock-based compensation; loss on disposal of property and equipment; other (income) expense; Spyce acquisition costs; ERP implementation and related costs; legal settlements; and, certain other expenses during the period that management determines are not indicative of ongoing operating performance; and
other companies, including those in our industry, may calculate Restaurant-Level Profit and Adjusted EBITDA differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial performance measures, loss from operations, net loss, and our other GAAP results.

About Sweetgreen

Sweetgreen (NYSE: SG) is on a mission to build healthier communities by connecting people to real food. Sweetgreen sources the best quality ingredients from farmers and suppliers they trust to cook food from scratch that is both delicious and nourishing. They plant roots in each community by building a transparent supply chain, investing in local farmers and growers, and enhancing the total experience with innovative technology. Since opening its first 560-square-foot location in 2007, Sweetgreen has scaled to over 245 locations across the United States, and their vision is to lead the next generation of restaurants and lifestyle brands built on quality, community and innovation. To learn more about Sweetgreen, its menu, and its loyalty program, visit www.Sweetgreen.com. Follow @Sweetgreen on Instagram, Facebook and X (formerly Twitter).

SWEETGREEN, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share amounts)

December 29, 2024

December 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

214,789

257,230

Accounts receivable

5,034

3,502

Inventory

1,987

2,069

Prepaid expenses

7,844

5,767

Current portion of lease acquisition costs

Other current assets

4,790

7,450

Total current assets

234,537

276,111

Operating lease assets

257,496

243,992

Property and equipment, net

296,485

266,902

Goodwill

35,970

Intangible assets, net

24,040

27,407

Security deposits

1,419

1,406

Lease acquisition costs, net

333

426

Restricted cash

2,640

125

Other assets

3,838

4,218

Total assets

856,758

856,557

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

Current liabilities:

Current portion of operating lease liabilities

41,773

31,426

Accounts payable

18,698

17,380

Accrued expenses

26,564

20,845

Accrued payroll

14,716

13,131

Gift cards and loyalty liability

4,413

2,797

Other current liabilities

9,663

6,000

Total current liabilities

115,827

91,579

Operating lease liabilities, net of current portion

288,941

271,439

Contingent consideration liability

5,311

8,350

Other non-current liabilities

173

819

Deferred income tax liabilities

361

1,773

Total liabilities

410,613

373,960

Stockholders’ (deficit) equity:

Common stock, $0.001 par value, 2,000,000,000 Class A shares authorized, 105,200,553 and 99,700,052 Class A shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively; 300,000,000 Class B shares authorized and 11,915,758 and 12,939,094 Class B shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively.

117

113

Additional paid-in capital

1,321,386

1,267,469

Accumulated deficit

(875,358

)

(784,985

)

Total stockholders’ (deficit) equity

446,145

482,597

Total liabilities and stockholders’ (deficit) equity

856,758

856,557

SWEETGREEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except share and per share amounts)

Fiscal Quarter Ended

December 29, 2024(1)

December 31, 2023(1)

Revenue

160,904

100

153,026

100

Restaurant operating costs (exclusive of depreciation and amortization presented separately below):

Food, beverage, and packaging

44,060

43,392

Labor and related expenses

45,913

44,800

Occupancy and related expenses

15,013

14,164

Other restaurant operating costs

27,966

25,889

Total restaurant operating costs

132,952

128,245

Operating expenses:

General and administrative

37,098

35,542

Depreciation and amortization

17,277

16,181

Pre-opening costs

2,321

1,073

Impairment and closure costs

1,830

145

—

Loss on disposal of property and equipment

—

140

—

Restructuring charges

779

—

989

Total operating expenses

59,382

54,070

Loss from operations

(31,430

)

(20

(29,289

)

(19

Interest income

(2,252

)

(3,248

)

Interest expense

—

Other expense

1,409

1,878

Net loss before income taxes

(30,601

)

(19

(27,989

)

(18

Income tax (benefit) expense

(1,571

)

(575

)

—

Net loss

(29,030

)

(18

(27,414

)

(18

Earnings per share:

Net loss per share, basic and diluted

(0.25

)

(0.24

)

Weighted average shares used in computing net loss per share, basic and diluted

116,055,620

112,519,663

(1)

We operate on a 52/53 week fiscal year end that ends on the last Sunday of the calendar year. Fiscal year 2024 contained 52 weeks. Fiscal year 2023 was a 53-week year with the extra operating week (the “53rd week”) falling in our fourth fiscal quarter.

SWEETGREEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except share and per share amounts)

Fiscal Year Ended

December 29, 2024(1)

December 31, 2023(1)

Revenue

676,826

100

584,041

100

Restaurant operating costs (exclusive of depreciation and amortization presented separately below):

Food, beverage, and packaging

185,367

161,725

Labor and related expenses

188,867

171,306

Occupancy and related expenses

59,536

54,281

Other restaurant operating costs

110,107

94,809

Total restaurant operating costs

543,877

482,121

Operating expenses:

General and administrative

149,942

146,762

Depreciation and amortization

67,346

59,491

Pre-opening costs

6,616

9,263

Impairment and closure costs

2,218

—

624

—

Loss on disposal of property and equipment

255

—

687

—

Restructuring charges

2,276

—

7,437

Total operating expenses

228,653

224,264

Loss from operations

(95,704

)

(14

(122,344

)

(21

Interest income

(10,942

)

(12,942

)

Interest expense

256

—

128

—

Other expense

6,656

3,475

Net loss before income taxes

(91,674

)

(14

(113,005

)

(19

Income tax (benefit) expense

(1,301

)

—

379

—

Net loss

(90,373

)

(13

(113,384

)

(19

Earnings per share:

Net loss per share, basic and diluted

(0.79

)

(1.01

)

Weighted average shares used in computing net loss per share, basic and diluted

114,321,672

111,907,675

(1)

We operate on a 52/53 week fiscal year end that ends on the last Sunday of the calendar year. Fiscal year 2024 contained 52 weeks. Fiscal year 2023 was a 53-week year with the 53rd week falling in our fourth fiscal quarter.

SWEETGREEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

Fiscal Year Ended

December 29, 2024

December 31, 2023

Cash flows from operating activities:

Net loss

(90,373

)

(113,384

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

67,346

59,491

Amortization of lease acquisition costs

Amortization of loan origination fees

Amortization of cloud computing arrangements

914

880

Non-cash operating lease cost

31,475

29,113

Loss on disposal of property and equipment

255

687

Stock-based compensation

39,024

49,532

Impairment and closure costs

1,835

Non-cash restructuring charges

701

5,281

Deferred income tax (benefit) expense

(1,412

)

358

Change in fair value of contingent consideration

6,624

3,475

Changes in operating assets and liabilities:

Account receivable

(1,532

)

(258

)

Inventory

(686

)

Prepaid expenses and other current assets

(22

)

(3,789

)

Operating lease liabilities

(18,318

)

(22,290

)

Accounts payable

759

9,871

Accrued payroll and benefits

1,585

6,551

Accrued expenses

3,313

1,163

Gift card and loyalty liability

1,616

781

Other non-current liabilities

(646

)

(533

)

Net cash provided by (used in) operating activities

43,390

26,480

Cash flows from investing activities:

Purchase of property and equipment

(84,457

)

(89,672

)

Purchase of intangible assets

(7,741

)

(6,115

)

Security and landlord deposits

(13

)

122

Net cash used in investing activities

(92,211

)

(95,665

)

Cash flows from financing activities:

Proceeds from stock option exercise

12,765

5,388

Payment of contingent consideration

(3,868

)

(10,421

)

Payment of loan origination fees

—

Payment associated to shares repurchased for tax withholding

)

(166

)

Net cash (used in) provided by financing activities

8,895

(5,199

)

Net decrease in cash and cash equivalents and restricted cash

(39,926

)

(74,384

)

Cash and cash equivalents and restricted cash—beginning of year

257,355

331,739

Cash and cash equivalents and restricted cash—end of year

217,429

257,355

Supplemental disclosure of cash flow:

Cash paid for interest

184

Non-cash investing and financing activities:

Purchase of property and equipment accrued in accounts payable and accrued expenses

9,791

6,824

Non-cash issuance of common stock associated with Spyce milestone achievement

2,132

—

SWEETGREEN INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL AND OTHER DATA

(UNAUDITED)

(dollars in thousands)

Fiscal Quarter Ended

Fiscal Year Ended

December 29, 2024(1)

December 31, 2023(1)

December 29, 2024(1)

December 31, 2023(1)

(unaudited)

SELECTED OPERATING DATA:

Net New Restaurant Openings

Average Unit Volume (as adjusted)(2)(4)

2,924

2,877

2,924

2,877

Same-Store Sales Change (%)(3)(4)

Total Digital Revenue Percentage

Owned Digital Revenue Percentage

(1)

(2)

Our results for the fiscal year ended December 29, 2024 have been adjusted to reflect the temporary closures of one restaurant which was excluded from the Comparable Restaurant Base. Such adjustment did not result in a material change to AUV. No restaurants were excluded from the Comparable Restaurant Base as of the end of fiscal year 2023.

(3)

Our results for the fiscal quarters ended December 29, 2024 and December 31, 2023, have been adjusted to reflect the temporary closures of three and two restaurants, respectively, which did not have a material impact on our Same-Store Sales Change. Our results for the fiscal years ended December 29, 2024 and December 31, 2023, have been adjusted to reflect the temporary closures of eight and two restaurants, respectively, which did not have a material impact on our Same-Store Sales Change.

(4)

For fiscal year 2023, average unit volume and same-store sales change were adjusted to exclude the 53rd week of operations.

SWEETGREEN, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited) (dollars in thousands)

The following table sets forth a reconciliation of our loss from operations to Restaurant-Level Profit, as well as the calculation of loss from operations margin and Restaurant-Level Profit Margin for each of the periods indicated:

Fiscal Quarter Ended

Fiscal Year Ended

December 29, 2024(1)

December 31, 2023(1)

December 29, 2024(1)

December 31, 2023(1)

Loss from operations

(31,430

)

(29,289

)

(95,704

)

(122,344

)

Add back:

General and administrative

37,098

35,542

149,942

146,762

Depreciation and amortization

17,277

16,181

67,346

59,491

Pre-opening costs

2,321

1,073

6,616

9,263

Impairment and closure costs

1,830

145

2,218

624

Loss on disposal of property and equipment(2)

140

255

687

Restructuring charges(3)

779

989

2,276

7,437

Restaurant-Level Profit

27,952

24,781

132,949

101,920

Loss from operations margin

(20

(19

(14

(21

Restaurant-Level Profit Margin

(1)

(2)

Loss on disposal of property and equipment includes the loss on disposal of assets related to retirements and replacement or write-off of leasehold improvements or equipment.

(3)

Restructuring charges are expenses that are paid in connection with reorganization of our operations. These costs primarily include lease and related costs associated with our vacated former Sweetgreen Support Center, including the impairment and the amortization of the operating lease asset.

The following table sets forth a reconciliation of our net loss to Adjusted EBITDA, as well as the calculation of net loss margin and Adjusted EBITDA Margin for each of the periods indicated:

Fiscal Quarter Ended

Fiscal Year Ended

December 29, 2024(1)

December 31, 2023(1)

December 29, 2024(1)

December 31, 2023(1)

Net loss

(29,030

)

(27,414

)

(90,373

)

(113,384

)

Non-GAAP adjustments:

Income tax expense

(1,571

)

(575

)

(1,301

)

379

Interest income

(2,252

)

(3,248

)

(10,942

)

(12,942

)

Interest expense

256

128

Depreciation and amortization

17,277

16,181

67,346

59,491

Stock-based compensation(2)

8,810

9,399

39,024

49,532

Loss on disposal of property and equipment(3)

140

255

687

Impairment and closure costs(4)

1,830

145

2,218

624

Other expense/(income)(5)

1,409

1,878

6,656

3,475

Spyce acquisition costs(6)

—

472

Restructuring charges(7)

779

989

2,276

7,437

ERP implementation and related costs(8)

232

224

914

881

Legal settlements(9)

1,290

360

1,326

425

Employer portion of the founder performance stock unit payroll taxes(10)

562

—

1,053

—

Adjusted EBITDA

(573

)

(1,849

)

18,708

(2,795

)

Net loss margin

(18

(13

(19

Adjusted EBITDA Margin

—

(1)

(2)

Includes non-cash, stock-based compensation.

(3)

Loss on disposal of property and equipment includes the loss on disposal of assets related to retirements and replacement or write-off of leasehold improvements or equipment.

(4)

Includes costs related to impairment of long-lived and operating lease assets and store closures.

(5)

Other expense includes the change in fair value of the contingent consideration issued as part of the Spyce acquisition.

(6)

Spyce acquisition costs includes one-time costs we incurred in order to acquire Spyce including, severance payments, retention bonuses, and valuation and legal expenses.

(7)

Restructuring charges are expenses that are paid in connection with the reorganization of our operations. These costs primarily include lease and related non-cash expenses associated with our vacated former Sweetgreen Support Center, including the impairment and amortization of the operating lease asset.

(8)

Represents the amortization costs associated with the implementation of our cloud computing arrangements in relation to our ERP system.

(9)

Expenses recorded for accruals related to the settlements of legal matters.

(10)

Includes the employer portion of payroll taxes related to the vesting of 600,000 performance stock units released to each founder during the fiscal year ended December 29, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226726640/en/

Sweetgreen Contact, Investor Relations: Rebecca Nounou ir@sweetgreen.com

Sweetgreen Contact, Media: Jenny Seltzer press@sweetgreen.com

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