On February 26, 2025, Sweetgreen Inc (SG, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ended December 29, 2024. Sweetgreen Inc, a next-generation restaurant and lifestyle brand, focuses on serving healthy, plant-forward meals with an emphasis on organic and local sourcing.
Quarterly Performance and Challenges
For the fourth quarter of 2024, Sweetgreen Inc reported total revenue of $160.9 million, which fell short of the analyst estimate of $161.93 million. The company experienced a net loss of $29.0 million, slightly higher than the $27.4 million loss in the same period last year. The loss from operations margin increased to 20% from 19% in the prior year period. These results highlight ongoing challenges in achieving profitability despite revenue growth.
Annual Financial Achievements
For the full fiscal year 2024, Sweetgreen Inc achieved total revenue of $676.8 million, which was below the annual estimate of $677.74 million, marking a 16% increase from the previous year. The company reported a net loss of $90.4 million, an improvement from the $113.4 million loss in 2023. Notably, the company achieved its first full year of Adjusted EBITDA profitability, with Adjusted EBITDA reaching $18.7 million, a significant improvement from a loss of $2.8 million in the prior year.
Key Financial Metrics
Sweetgreen Inc's Same-Store Sales Change was 4% for the quarter and 6% for the year, reflecting positive momentum in customer engagement. The Average Unit Volume (AUV) remained consistent at $2.9 million. The Restaurant-Level Profit Margin improved to 17% for the quarter and 20% for the year, indicating enhanced operational efficiency.
Metric | Q4 2024 | FY 2024 |
---|---|---|
Total Revenue | $160.9 million | $676.8 million |
Net Loss | $(29.0) million | $(90.4) million |
Adjusted EBITDA | $(0.6) million | $18.7 million |
Restaurant-Level Profit Margin | 17% | 20% |
Strategic Initiatives and Outlook
Sweetgreen Inc opened 10 new restaurants in Q4 2024, contributing to a total of 25 new openings for the year. The company plans to continue expanding with at least 40 new restaurant openings in 2025, including 20 featuring the Infinite Kitchen technology. The company aims to achieve revenue between $760 million and $780 million in 2025, with a Same-Store Sales Change of 1-3%.
“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.
“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,” said Mitch Reback, Chief Financial Officer.
Analysis and Conclusion
Sweetgreen Inc's financial results for 2024 demonstrate progress in revenue growth and operational efficiency, although challenges remain in achieving net profitability. The company's strategic focus on menu innovation, digital engagement, and expansion through new restaurant openings positions it well for future growth. However, the ability to manage costs and enhance profitability will be crucial as the company navigates a competitive restaurant industry landscape.
Explore the complete 8-K earnings release (here) from Sweetgreen Inc for further details.