Restaurant group Sweetgreen's Q1 revenue misses estimates, hurt by lower traffic

SWEETGREEN

07/05/2026 22:04

Overview

U.S. fast-casual restaurant's Q1 revenue fell 2.9% yr/yr, missing analyst expectations

Adjusted EBITDA for Q1 came in below expectations, reflecting operational losses and lower profit margins

Revenue decline driven by lower traffic, increased promotions, partially offset by new openings

Outlook

Company expects about 13 net new restaurant openings in fiscal 2026, half with Infinite Kitchen

Sweetgreen forecasts same-store sales change between (4.0)% and (2.0)% for fiscal 2026

Company sees restaurant-level profit margin of 14.2% to 14.7% and adjusted EBITDA of $1 mln to $6 mln

Result Drivers

TRAFFIC DECLINE - Co said a 11.2% drop in traffic drove lower same-store sales and revenue

PROMOTIONS AND LOYALTY PROGRAM - Increased promotional activity and transition to SG Rewards loyalty program reduced product mix and margins

HIGHER INGREDIENT AND PORTION COSTS - Restaurant-level profit margin fell due to higher ingredient usage, investments in chicken and tofu portions, and increased promotions, partially offset by supply chain savings

Company press release: ID:nBw8JMSHza

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$161.5 mln
$163.78 mln (13 Analysts)
Q1 Adjusted EBITDA
Miss
-$8.1 mln
-$5.21 mln (13 Analysts)
Q1 EBIT
Miss
-$34.3 mln
-$30.61 mln (11 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for Sweetgreen Inc is $7.00, about 1.9% above its May 6 closing price of $6.87

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)