Total Revenue (Geography)

+5%

The Q1 2025 revenue increased from $157.85M to $166.304M, a result that aligns with the previous fiscal year's drivers—net new restaurant openings and improved same-store sales driven by menu price increases and favorable product mix, reflecting a positive market recovery and ongoing operational improvements. " " " " "

Cash and Cash Equivalents

-24.5%

Cash declined from $243,756K to $183,893K, which may indicate that the company is using funds for capital expenditures, expansion initiatives, or working capital adjustments; this follows a pattern where earlier cash positions were higher but have been reduced due to increased investment activity, although specific causal details were not disclosed. " "

Accounts Receivable

+41%

Accounts receivable rose from $5,590K to $7,912K, likely due to increased sales volume combined with slower collection cycles or extended credit terms, a trend echoing previous period revenue increases without additional clarifying details on collection policies. " "

Total Stockholders’ Equity

-8%

Equity decreased from $470,278K to $432,754K, continuing the trend from FY 2024 where net losses substantially increased the accumulated deficit, even though additional paid-in capital showed modest gains; this indicates ongoing challenges in profitability impacting the company’s balance sheet. " " " " "

Total Liabilities

+8%

Liabilities increased to $401,566K from a lower base in Q1 2024, suggesting the company may have taken on additional debt or incurred higher operational liabilities to support expansion, consistent with a strategy of leveraging capital that accompanies shrinking equity. " "

Net new restaurant openings

FY 2025

At least 40 "

no guidance

no current guidance

Revenue

FY 2025

Between $760 million and $780 million "

no guidance

no current guidance

Same-store sales growth

FY 2025

Between 1% and 3% "

no guidance

no current guidance

Restaurant-level margins

FY 2025

Between 19.8% and 20.5% "

no guidance

no current guidance

Adjusted EBITDA

FY 2025

Between $32 million and $38 million "

no guidance

no current guidance

Infinite Kitchen deployment

FY 2025

20 of the 40 new restaurants will feature the Infinite Kitchen "

no guidance

no current guidance

Net new restaurant openings

Q1 2025

5 "

no guidance

no current guidance

Revenue

Q1 2025

Between $163 million and $166 million "

no guidance

no current guidance

Same-store sales decline

Q1 2025

Between 5% and 3% "

no guidance

no current guidance

Restaurant-level margin

Q1 2025

Between 16.4% and 16.8% "

no guidance

no current guidance

Adjusted EBITDA loss

Q1 2025

Between $3 million and $1 million "

no guidance

no current guidance

Infinite Kitchen Technology

Across Q2, Q3, and Q4 2024, Infinite Kitchen technology was consistently highlighted for its labor savings, operational consistency, and its contribution to margin expansion. The discussions emphasized retrofit cost details and throughput benefits ( " " " " " " ).

In Q1 2025, the Infinite Kitchen remains a central pillar of Sweetgreen’s strategy—with renewed emphasis on strong performance, margin leverage, and high native digital sales. Despite tariff impacts, it is portrayed as “wildly accretive,” driving operational efficiency and robust labor savings ( " " " " ).

Recurring theme with sustained positive sentiment. The focus remains on margin expansion and operational consistency, with added emphasis on overcoming tariff challenges while scaling the format.

Strategic Expansion and New Store Openings

In Q2, Q3, and Q4 2024, Sweetgreen detailed expansions into new markets (e.g., Seattle, Columbus, Charlotte) and outlined aggressive pipeline targets including new unit growth and the deployment of Infinite Kitchens in many new locations ( " " " " " ).

Q1 2025 continues this strategy by announcing entry into three new markets (Sacramento, Phoenix, Cincinnati), opening five new restaurants, and confirming a pipeline of 40 net new restaurants in 2025—with an integrated focus on formats such as Infinite Kitchen and Sweetlane ( " " " ).

Steady commitment with broader geographic diversification. While the fundamental objective of expansion remains, there is a notable emphasis on innovative formats and integrated performance metrics, suggesting a more layered and technology-driven expansion strategy.

Operational Efficiency and Profitability

Previous periods (Q2–Q4 2024) consistently showcased improvements in restaurant-level margins, labor optimization, and adjusted EBITDA, with detailed discussions on cost management and operational improvements ( " " " " " ).

Q1 2025 reports that operational initiatives have driven a restaurant-level profit margin of 17.9% and modest adjusted EBITDA gains. Efforts to optimize ingredient consolidation and labor costs are highlighted, with continued focus on mitigating tariff impacts ( " " ).

Ongoing improvement with a cautious tone. While efficiency gains continue, Q1 2025 shows a balanced narrative—maintaining profitability improvements amid rising input costs and external challenges like tariffs.

Menu Innovation and Product Differentiation

In Q2–Q4 2024, menu innovation discussions centered on items like Caramelized Garlic Steak, Protein Plates, seasonal menus, and culinary collaborations, all aimed at broadening the brand beyond salads ( " " " " ).

Q1 2025 introduces bold initiatives such as the nationwide launch of Ripple Fries and a high-profile collaboration with COTE Korean Steakhouse, paired with seasonal menu plans and core menu refinement. The focus is on enhancing guest experience and broadening appeal ( " " " " ).

Enhanced culinary creativity and diversification. There is a heightened focus on innovation, driven by strategic collaborations and new items that aim to elevate the brand’s culinary identity while maintaining operational excellence.

Same-Store Sales Growth and Pricing Strategy

In Q2–Q4 2024, same-store sales generally grew modestly, driven partly by menu price increases and positive traffic, with less concern about over-reliance on pricing as a growth lever ( " " " " " ).

In Q1 2025, same-store sales declined by 3.1% overall. Although menu price increases contributed a 3.4% uplift, this was offset by a significant negative 6.5% impact from reduced traffic and mix, amid softening consumer sentiment and external headwinds ( " " " ).

Notable shift in sentiment. Previously, growth was driven by balanced pricing and traffic gains; now, there is increasing concern over decreased organic traffic and a heavy reliance on price increases, signaling vulnerability to external economic factors.

Cost Management and New Store Build-Out Efficiency

Q2–Q4 2024 discussions emphasized disciplined cost management via bulk purchasing, streamlined build-out processes, and efforts to offset tariff impacts, with guidance on base build-out costs around $1.4–$1.5 million per store and detailed cost metrics for Infinite Kitchens ( " " " " ).

Q1 2025 maintains a focus on cost management with improved food, beverage, and packaging costs (down by over 100 bps) and labor costs tracked similarly to prior periods. There is an updated focus on mitigating tariff impacts on Infinite Kitchen deployment and restaurant build-out costs ( " " ).

Consistent emphasis with an updated focus on tariffs. The company continues to improve build-out efficiencies while now addressing increased tariff pressures, illustrating proactive cost management in a challenging external environment.

External Challenges

In Q2 and Q4 2024, external factors were mentioned with moderate emphasis—economic uncertainty was noted in Q2, while Q4 focused on weather disruptions and wildfire impacts in specific markets ( " " ).

Q1 2025 provides a more detailed discussion of external challenges, citing declining consumer sentiment, softening same-store sales, adverse weather impacts, and significant tariff effects on several operational facets ( " " " " ).

Increased prominence in discussion. Compared to previous periods, Q1 2025 demonstrates heightened concern over economic and weather-related headwinds, with a more granular analysis of tariff impacts—suggesting that external challenges are now a larger factor in strategic planning and operational performance.

Operational Complexity from Menu Initiatives

In Q3 and Q4 2024, CEO Jonathan Neman explicitly discussed the operational complexity arising from expanded menu initiatives, emphasizing simplification measures and process optimizations to manage new items ( " " ). In Q2 2024, the topic was mentioned more in passing as menu offerings expanded.

Q1 2025 did not explicitly address operational complexity tied to menu expansion. Instead, the focus was on operational excellence and refining core offerings without highlighting additional complexity challenges ( " " " ).

Reduced explicit discussion. While previous periods focused on managing complexity from new menu innovations, Q1 2025 omits this topic, suggesting either improved internal processes or a shift in focus toward other strategic priorities amid economic and external challenges.