Executive Summary

Q4 2024 revenue rose 5% year over year to $160.9M; same‑store sales grew 4% on ~4 points of price with flat traffic/mix; restaurant‑level profit margin expanded ~100 bps to 17%, while Adjusted EBITDA was a ~$0.6M loss and GAAP net loss was $29.0M .
2025 outlook targets revenue of $760–$780M, SSS +1–3%, restaurant‑level margin 19.8–20.5%, and Adjusted EBITDA $32–$38M; Q1 2025 guide embeds weather/wildfire disruptions with SSS of approximately (5)–(3)% (corrected) and revenue of $163–$166M .
Strategic pillars for 2025: accelerate menu innovation (Ripple Fries in March; chef collaboration; seasonals returning), launch SG Rewards in April (10 points per $1), and scale automation (at least 20 of 40 2025 openings with Infinite Kitchen) .
Potential stock reaction catalysts: cautious Q1 guide (weather/L.A. wildfire headwinds on ~60% of fleet; L.A. ~15% of revenue), paired with full‑year 2025 margin/EBITDA expansion and accelerated unit growth with IK mix .

What Went Well and What Went Wrong

What Went Well
- Restaurant-level margin improved to 17% in Q4 (+100+ bps YoY), aided by pricing and labor optimization; FY24 restaurant-level margin expanded >200 bps to ~20% .
- First full year of positive Adjusted EBITDA ($18.7M) achieved in 2024; CFO: “This marks our first full year of Adjusted EBITDA profitability in Sweetgreen’s history” .
- Infinite Kitchen units delivering ~7 percentage points labor savings and ~1 point COGS improvement; management highlighted strong throughput and customer satisfaction (90% favorable IK survey) .
What Went Wrong
- Q4 GAAP loss from operations widened to $(31.4)M (–20% margin), and net loss was $(29.0)M (–18% margin), reflecting higher impairment/closure costs and pre‑opening costs vs. prior year .
- Owned Digital Revenue % declined YoY to 29% (from 34%) as channel mix shifted, while Total Digital % was 56% (down from 58%) .
- Q1 2025 SSS guide of approximately (5)–(3)% reflects holiday shifts, extreme weather, and L.A. wildfires (L.A. ~15% of revenue); quarter‑to‑date L.A. comps turned negative double digits vs. high single‑digit growth in 2024 .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$153.0	$184.6	$173.4	$160.9
Net Loss Per Share (basic & diluted)	$(0.24)	$(0.13)	$(0.18)	$(0.25)
Loss from Operations Margin (%)	(19)%	(9)%	(12)%	(20)%
Net Loss Margin (%)	(18)%	(8)%	(12)%	(18)%
Restaurant-Level Profit Margin (%)	16%	22%	20%	17%
Adjusted EBITDA ($USD Millions)	$(1.8)	$12.4	$6.8	$(0.6)
Adjusted EBITDA Margin (%)	(1)%	7%	4%	0%

KPIs and Operating Metrics

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Same-Store Sales Change (%)	6%	9%	6%	4%
Average Unit Volume (AUV, $USD Millions)	$2.877	$2.925	$2.907	$2.924
Total Digital Revenue (%)	58%	56%	55%	56%
Owned Digital Revenue (%)	34%	31%	29%	29%
Net New Restaurant Openings	1	4	5	10

Non-GAAP definitions and reconciliations are provided in the press release; Adjusted EBITDA excludes items including stock‑based comp, ERP costs, legal settlements, and founder PSU payroll taxes, among others .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	FY 2025	N/A	$760–$780	New
Same-Store Sales Change (%)	FY 2025	N/A	+1% to +3%	New
Restaurant-Level Profit Margin (%)	FY 2025	N/A	19.8%–20.5%	New
Adjusted EBITDA ($M)	FY 2025	N/A	$32–$38	New
Net New Restaurants (count)	FY 2025	N/A	≥40 (20 IK)	New
Revenue ($M)	Q1 2025	N/A	$163–$166	New
Same-Store Sales Change (%)	Q1 2025	N/A	approximately (5)–(3)%	New; corrected sign
Restaurant-Level Profit Margin (%)	Q1 2025	N/A	16.4%–16.8%	New
Adjusted EBITDA ($M)	Q1 2025	N/A	$(3) to $(1)	New
Revenue ($M)	FY 2024	$675–$680 (Q3 guide)	$676.8 actual	In-line
Same-Store Sales Change (%)	FY 2024	6%–7% (Q3 guide)	6% actual	Achieved
Restaurant-Level Profit Margin (%)	FY 2024	19.5%–20% (Q3 guide)	20% actual	Achieved
Adjusted EBITDA ($M)	FY 2024	$18–$20 (Q3 guide)	$18.7 actual	Achieved

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Menu innovation and newness	Steak launch driving Q2 SSS +9% and dinner mix; seasonals and sides roadmap . Q3 emphasized harvest campaign and attachments testing (Ripple Fries) .	Ripple Fries nationwide in March; chef collaboration in May; summer/fall seasonals returning; sustained marketing per drop .	Accelerating
Loyalty/CRM	Roadmap evolving; marketing shifting to full-funnel . Q3 set up revamped loyalty in 2025 .	SG Rewards launches April; 10 points per $1; more compelling benefits to broaden base .	Implementation in 2025
Infinite Kitchen (IK)	Naperville ~31% margin; strong throughput; first retrofit (Penn Plaza) completed in 7 weeks .	12 IKs at 2024 year-end; 20+ new IKs in 2025; ~7 pts labor savings and ~1 pt COGS benefit; 500 orders/hour capacity; Willis Tower & Wall Street retrofits .	Scaling
Throughput & AI workforce	Labor optimization, lower turnover; early AI workforce initiatives . Q3 piloted AI scheduling to 70 restaurants .	AI workforce tool rolled out to ~half fleet (10% more hours, 1/3 lower absentee); “Project Turbo” to flex front/digital lines; rollout by end of Q2 .	Scaling
Macro/weather disruptions	Cautious H2 2024 macro tone . Q3 raised FY24 guide on momentum .	Holiday shifts, extreme weather, and L.A. wildfires impacted ~60% of fleet; L.A. (15% of revenue) comps turned negative double digits QTD .	Near-term headwind
Regional trends	Emerging markets (Midwest, TX, Southeast) strength .	Double-digit comps in those regions during 2024; L.A. high single-digit in 2024 but down QTD 2025 .	Mixed
Development/build cost	2025 pipeline re-accelerates 15–20% growth . Q3 2025 plan for ≥40 openings, ~50% IK .	Core build-out “between 1 4 and 1 5” with aim to lower further in 2026; continued cost optimization .	Improving
Value proposition	Focus on marketing efficiency and awareness .	More value via loyalty and mid-tier seasonal items; reinforce seasonal identity .	Emphasizing value

Management Commentary

Strategic focus (CEO): “Our 3 strategic pillars for 2025 are: [1] revolutionizing fast food through menu and technology innovation; [2] strengthening guest connection and operational excellence; and [3] strategically expanding and evolving our footprint” .
Menu/newness cadence: “We are significantly increasing the pace of innovation…Ripple Fries next month…chef collaboration…reintroducing 3 to 4 seasonals across summer and fall” .
Loyalty: “SG Rewards is our points‑based loyalty program where customers earn 10 points for every eligible dollar spent…with opportunities to redeem free menu items and access unique offers” .
Infinite Kitchen proof points: “These locations are delivering at least 7 percentage points in labor savings and 1 point in improved COGS…90% [guest] favorable” .
Q1 headwinds (CFO): “Extreme weather in January and February affected guest traffic across approximately 60% of our fleet…L.A. market represents nearly 15% of our revenue…quarter‑to‑date in 2025, [L.A.] declined to negative double‑digit comps” .

Q&A Highlights

Marketing cadence and spend: More dollars shifting to marketing; heavier support begins in Q2 and runs through year‑end; full‑funnel approach (OOH, social, owned content) .
2025 comps bridge: Sequential improvement expected as Ripple Fries (March), loyalty (April), chef collab (May), and seasonals drive transactions; early 2025 impacted by holiday shifts, wildfires, and weather .
Throughput initiatives: “Project Turbo” will flex front line and digital line capacity across dayparts; IK throughput ~500 orders/hour; finishing station redesigns improving speed/accuracy .
Margin drivers: Confidence in annual margin expansion from labor, COGS leverage with scale, and lower occupancy as footprint densifies outside NYC; IK is an accelerant .
Build‑out costs: Core prototype tracking “between 1 4 and 1 5” with more reductions targeted in 2026 .

Estimates Context

Consensus estimates (S&P Global) for Q4 2024 revenue and EPS were not available at retrieval time due to an S&P Global API rate limit. As a result, we cannot assess beats/misses vs. Wall Street for Q4 2024 or provide estimate-based deltas. We will update this section upon access restoration.

Key Takeaways for Investors

Price‑led comp with stable traffic/mix in Q4: SSS +4% was entirely price‑driven, lapping a strong Protein Plates launch; near‑term comps hinge on new product cadence and marketing activation .
2025 setup is bifurcated: a noisy Q1 (weather/wildfires) followed by a heavier calendar of innovation (Fries, chef collab, seasonals) and loyalty launch aimed at sequential comp improvement .
Structural margin path intact: FY24 restaurant‑level margin reached ~20% (+200+ bps YoY); 2025 guide embeds ~19.8–20.5% and higher Adjusted EBITDA ($32–$38M) despite a soft Q1 .
Automation advantage compounding: IKs show ~7 pts labor and ~1 pt COGS benefit with strong throughput and customer satisfaction; at least 20 of 2025’s ≥40 openings to include IK .
Engagement and value levers: SG Rewards (10 pts per $) plus a faster cadence of mid‑tier seasonal items are designed to broaden the base and lift frequency .
Development discipline: Core build‑out costs trending “between 1 4 and 1 5” with a path to further reductions in 2026; prioritizing high‑volume retrofits for IK when feasible .
Risk monitoring: Channel mix shifts (Owned Digital % down to 29%) and macro/weather sensitivity (notably in L.A.) remain watch points into early 2025 .

Management and Document References: Q4 2024 8‑K/press release including corrected guidance ; Q4 2024 earnings call (prepared remarks and Q&A) ; Prior quarter context from Q2/Q3 2024 press releases and calls .

Sweetgreen, Inc. (SG)·Q4 2024 Earnings Summary