Salad chain Sweetgreen misses Q3 revenue estimates due to reduced consumer spending

SWEETGREEN

06/11/2025 21:31

Overview

Sweetgreen Q3 2025 revenue declined 0.6% yr/yr, missing analyst expectations

Adjusted EBITDA for Q3 2025 missed analyst estimates

Company reported a net loss of $36.1 mln, with a wider loss margin than last year

Outlook

Sweetgreen projects fiscal year 2025 revenue between $682 mln and $688 mln

Company expects fiscal year 2025 Same-Store Sales Change of (8.5)% to (7.7)%

Sweetgreen anticipates fiscal year 2025 Adjusted EBITDA between $(13) mln to $(10) mln

Result Drivers

SAME-STORE SALES DECLINE - Decrease in same-store sales driven by reduced consumer spending and transition to new loyalty program

DIGITAL SALES GROWTH - Increase in digital sales percentage attributed to new SG Rewards loyalty program

COST INCREASES - Higher ingredient and packaging costs due to increased protein portions and tariffs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$172.40 mln
$182.90 mln (13 Analysts)
Q3 Adjusted EBITDA
Miss
-$4.40 mln
$4.68 mln (11 Analysts)
Q3 EBIT
Miss
-$36.30 mln
-$20.40 mln (10 Analysts)
Q3 Basic EPS
-$0.31


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "hold" and no "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 $11.00, about 41.2% above its November 5 closing price of $6.47

Press Release: ID:nBw9WNq7Ya

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(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.)