Total Revenue

+5.1% increase from $152.99M in Q4 2023 to $160.88M in Q4 2024

Modest revenue growth reflects improved performance across all channels (In-Store, Marketplace, and Owned Digital) as existing strategies continue to mature. This builds on prior quarter growth patterns where incremental restaurant openings and operational improvements had driven earlier revenue gains. " "

Revenue Mix by Channel

In-Store: $70.75M; Marketplace: $43.15M; Owned Digital: $46.98M

Channel diversification shows that In-Store remains the dominant contributor, suggesting that continued physical expansion and customer experience enhancements are key drivers. This mix highlights a balanced revenue base that builds on previous successful in-store and digital channel investments. "

Operating Income

Worsened from –$29.29M in Q4 2023 to –$31.43M in Q4 2024 (7% decline)

Operating income deterioration is driven by rising operating costs that outpaced revenue growth, echoing earlier trends when investments increased expenses despite modest revenue gains. Higher CapEx investments and increased daily operating costs appear to have impacted margins negatively compared to the previous period. " "

Net Income

Declined from –$27.41M in Q4 2023 to –$29.03M in Q4 2024 (≈5.9% drop)

The net loss widened as incremental revenue gains were insufficient to offset increased operating expenses and depreciation, following past period trends where improvements in Restaurant-Level Profit were overshadowed by higher costs. This indicates challenges in converting operational improvements into bottom-line gains. " "

Cash Flow & CapEx

Net cash change worsened from –$17.51M to –$39.93M; CapEx jumped from –$14.79M to –$84.46M

Dramatic deterioration in cash metrics is primarily due to a steep increase in CapEx (an additional nearly $70M), signaling aggressive investment in expansion and asset upgrades. This contrasts with previous periods when CapEx was moderated and cash flow improved through better operating performance, raising forward-looking liquidity and investment discipline concerns. " "

Net new restaurant openings

FY 2025

24 to 26 "

At least 40 "

raised

Revenue

FY 2025

$675 million to $680 million "

Between $760 million and $780 million "

raised

Same-store sales growth

FY 2025

Between 6% and 7% "

Between 1% and 3% "

lowered

Restaurant-level margin

FY 2025

Between 19.5% and 20% "

Between 19.8% and 20.5% "

raised

Adjusted EBITDA

FY 2025

$18 million to $20 million "

Between $32 million and $38 million "

raised

Infinite Kitchen deployment

FY 2025

no prior guidance

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

no prior guidance

Same-store sales growth

Q1: 5% growth driven entirely by menu price increases. " " Q2: 9% growth with a 5% benefit from increased prices and 4% from traffic/mix; record levels noted. " " Q3: 6% growth, with emerging markets posting double-digit gains fueled by a 4% benefit from price increases and 2% positive traffic and mix. " " "

Q4: Reported 4% same-store sales growth; growth came solely from a 4% benefit from menu price increases with flat traffic and mix. "

Declining growth: Although price increases remain a driver, same-store sales growth has been lower in Q4 relative to earlier periods. This signals both a continuation of price reliance and a modest tapering of organic traffic/mix contributions. " " "

Menu innovation & product diversification

Q1: Introduced Caramelized Garlic Steak, simplified the menu, and focused on sustainable, customer-driven changes. " " Q2: Highlighted steak launch as a driver of dinner sales and introduced testing for new side items, beverages, and chef collaborations. " " " " Q3: Expanded beyond salads with Protein Plates and seasonal items like Harvest Bowl, alongside testing of handheld items and desserts. " " "

Q4: Emphasized a robust pipeline for 2025 with the return of a seasonal menu, the launch of Ripple Fries scheduled for March, and a chef collaboration in May. The new SG Rewards loyalty program will underpin these innovations, while a faster pace of menu innovation is planned to drive customer engagement. " " " "

Consistent commitment with increased emphasis: Menu innovation has been a constant theme, but Q4 shows a strategic deepening—with seasonal items returning, new product launches, and integration with a loyalty program—indicating a pivot towards more holistic promotional and product diversification initiatives. " " "

Infinite Kitchen & margin expansion

Q1: Initiated pilot deployments in locations like Huntington Beach and Naperville with high margins (28%) and plans to retrofit urban restaurants. " " " Q2: Reported labor savings and cost-of-goods improvements through Infinite Kitchen pilots, with significant throughput improvements noted at Penn Plaza. " " " " " Q3: Demonstrated faster service (e.g. 5-minute order fulfillment at Penn Plaza) and a margin improvement of over 100 basis points year-over-year. " " " "

Q4: Continued deployment with 12 Infinite Kitchens operational (6 opened in Q4) and plans to deploy 20 new IKs as part of 40 new restaurants in 2025. The technology is credited with 7 percentage points in labor savings and improvements in throughput and guest satisfaction, supporting margin expansion toward the low 20% range. " " " " "

Scaling with sustained margin benefits: Infinite Kitchen technology has evolved from early pilots to a wider rollout with clear operational and margin benefits. Q4 confirms continued aggressive deployment and improved cost metrics, underscoring its role as a key pillar for margin expansion. " " "

Store expansion & new market penetration

Q1: Opened new markets such as Seattle, San Francisco, Miami, Denver, and Austin; strong early performance with high weekly revenue outpacing the fleet average. " " Q2: Targeted 15%-20% annual unit growth with new openings in Washington, D.C.; Chicago; Morristown; and Salem, emphasizing peripheral market strategies. " " " " Q3: Continued robust expansion with one-third of openings in new markets, notably in emerging regions (Midwest, Texas, Southeast), and recruitment of a Chief Development Officer. " " " "

Q4: Plans to accelerate unit growth by at least 15% in 2025 while entering new markets such as Sacramento, Phoenix, and Cincinnati. There is a strong focus on reducing build-out costs (tracked between $1.4M and $1.5M) and integrating Infinite Kitchens into new and retrofitted locations to improve profitability. " "

Aggressive expansion with cost efficiency focus: Store expansion remains a core priority across periods. In Q4, the strategy is enhanced by targeting cost reductions and deeper market penetration, signaling increased operational discipline alongside geographic growth. " " "

Operational challenges & complexity

Q1: Acknowledged retrofit downtime and rollout complexities with Infinite Kitchen deployments, with uncertainty factored into revenue guidance. " " Q2: Discussed retrofit timing—with the Penn Plaza retrofit taking 7 weeks (1 full closure)—and the learnings being applied to improve processes. " " " " Q3: Detailed challenges with rollout delays and retrofitting downtime (e.g. 6-7 weeks), while highlighting successes like the efficient Penn Plaza retrofit. " " " "

Q4: Noted ongoing challenges such as rollout delays, constraints on the IK team, and retrofitting downtime impacting operations. However, improvements in operational efficiency, including a new AI-powered workforce management system and record-low turnover rates, have helped mitigate some challenges. " " " "

Persistent but mitigated challenges: While operational complexities and rollout delays continue to exist, Q4 indicates progress with technological and workforce improvements that lessen their overall impact. " " "

Reliance on price increases & future promotions

Q1: Sales growth (5%) was driven entirely by a 5% price increase, especially noted in California. " " Q2: Continued reliance on price increases (e.g., 5% benefit) but with a cautious view due to inflationary pressures; some discussion of menu innovation helping drive traffic. " " " Q3: Price increases contributed 4% to same-store sales, alongside modest promotional activities and evolving loyalty program discussions. " "

Q4: Indicated a gradual rolloff of price increases for 2025, with a clear pivot toward promotional initiatives. Future growth will be supported by new product launches (e.g. Ripple Fries), a chef collaboration, and the upcoming SG Rewards loyalty program to drive transactional growth. " " "

Transition in growth drivers: Earlier periods relied heavily on price increases. Q4 marks a strategic shift towards diversified promotional initiatives and product innovation, reducing dependency on pricing as a growth lever. " " "

Economic uncertainty & consumer spending

Q1: No explicit discussion, though a subtle note on selective discretionary spending was made. " Q2: CFO expressed caution amid an uncertain U.S. economic backdrop, acknowledging potential impacts on consumer spending. " " Q3: No specific discussion on economic uncertainty emerged. " "

Q4: The current period did not include any explicit discussion or mention of economic uncertainty or its impact on consumer spending. "

Fading emphasis: Economic uncertainty was a topic of caution in Q2, but by Q4 it is no longer a focal point in discussions, suggesting either an improved external outlook or a strategic decision to pivot focus. " "

Historical labor cost pressures

Q1: Addressed California labor pressures with a mid to high single-digit wage increase offset by a 5% price increase in California. " Q2: Not specifically mentioned; Q3: Not detailed though Q3 noted improvements in labor expense percentages. "

Q4: No explicit mention of historical labor cost pressures; instead, there is emphasis on improved labor metrics such as the lowest turnover and absentee rates in company history and the deployment of an AI-powered workforce management system. " "

Reduced emphasis: Early discussions on labor cost pressures (e.g. California wage hikes) have faded by Q4, replaced by positive labor outcomes and efficiency initiatives. " " "

Holiday traffic & seasonal sales weakness

Q1: Concerns were noted regarding the potential for negative traffic in holiday periods and uncertainties around seasonal performance, especially with new product launches and mid-quarter adjustments. " Q2: Mentioned initial softness around the July holiday but recovery later in the quarter. " Q3: No explicit or detailed focus on holiday traffic concerns beyond noting strong months like September. "

Q4: No explicit mention of earlier holiday traffic or seasonal sales weaknesses. Instead, Q4 focused on positive same-store sales growth and the planned return of seasonal menu items in 2025 to reinvigorate performance. " "

Diminished concerns: Earlier worries regarding holiday traffic and seasonal sales weakness have largely disappeared by Q4, likely due to improved seasonal campaigns and operational adjustments. " "

Emerging loyalty program rollout

Q1 & Q2: No discussion on new loyalty initiatives was present. Q3: Began addressing loyalty as a strategic lever with plans for a new program in H1 2025 to build direct customer relationships. "

Q4: Provided detailed plans for the launch of the SG Rewards loyalty program in April 2025, including a points-based system with member-exclusive benefits and integrations with menu launches to drive engagement and customer frequency. " "

Emergence as a key initiative: Loyalty program discussions emerged in Q3 and have become a central focus in Q4, reflecting a strategic shift towards deepening customer relationships and reducing reliance on price-based growth. " " "