SG earnings analysis
What we found in SG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Sweetgreen, Inc. reported Q1 2026 results with revenue of $161.5 million, down 2.9% year-over-year, and a diluted EPS of -$0.27, missing consensus estimates. The net income was significantly boosted by a one-time gain from the sale of Spyce, amounting to $160.6 million, but the company's operational losses expanded due to a negative 12.8% same-store sales change and increased operating costs.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Revenue decreased by 2.9% year-over-year from $166.3 million to $161.5 million.
- Increased Digital Revenue
- Total digital revenue increased to 67.2%, up from 59.9% in the prior year.
- Significant Gain from Asset Sale
- The company recorded a $160.6 million gain from the sale of Spyce, materially impacting net income.
- Operating Margin Struggles
- Operating margin worsened to -21.3% from -17.2% in the previous quarter.
- Same-Store Sales Decline
- Experienced a 12.8% decline in same-store sales vs. 3.1% decline in the prior year.
- Cash Balance Improvement
- Cash increased to $156.8 million from $89.2 million as of December 28, 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operational Losses
- Loss from operations increased by 20.4% to $34.3 million from $28.5 million in the prior year.
- Decreased Customer Traffic
- Overall customer traffic declined by 11.2% impacting revenue and sales performance.
- Higher Operating Costs
- Total operating costs rose 6.4% from $136.6 million to $145.3 million, straining margins.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.27
What they said about what is next.
Company anticipates opening 13 new restaurants in FY 2026 and expects continued challenges in same-store sales.
The filing reads worse than the one before it.
What came before.
- 10-K · February 27, 2026
- Sweetgreen positions itself around a five-part 'Sweet Growth Transformation Plan' focused on operational excellence, menu quality, personalized digital engagement, brand relevance, and disciplined profitable investment.…
- 10-Q · November 7, 2025
- Sweetgreen reported revenue of $172.4M for the 13 weeks ended September 28, 2025, roughly flat year-over-year (-$1.0M) but down versus the prior quarter. Gross margin compressed to ~13.1% (from 20.2% a year ago),…
- 10-Q · November 8, 2024
- Sweetgreen reported revenue of $173.431M for the quarter ended September 29, 2024, up $20.003M (13.0%) versus the year-ago quarter, with gross margin improving to ~20.2% and operating loss narrowing to $21.175M. Net…
- 10-Q · August 9, 2024
- Sweetgreen reported quarterly revenue of $184,641,000 (Q2 ended June 30, 2024), up materially versus the year-ago quarter and prior quarter, with gross margin expanding to 22.5% and operating loss narrowing to -8.8%.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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