Sweetgreen Q2 revenue misses estimates on same-store sales decline and menu mix changes

Sweetgreen

06/08/2026 21:29

Overview
U.S. fast-casual chain's Q2 revenue rose 3.8% but missed analyst expectations
Q2 adjusted EBITDA turned negative, missing analyst expectations
Company cites 6.2% same-store sales decline and menu mix changes for weak results

Outlook
Company expects about 13 net new restaurant openings in fiscal 2026, half with Infinite Kitchen
Sweetgreen forecasts fiscal 2026 same-store sales change between (8.0)% and (7.0)%
Company sees fiscal 2026 restaurant-level profit margin of 10.5% to 11.0% and adjusted EBITDA of $(27.0) mln to $(23.0) mln

Result Drivers
NEW RESTAURANT OPENINGS - Revenue growth was primarily driven by incremental revenue from 36 net new restaurant openings since Q2 2025
SAME-STORE SALES DECLINE - Same-store sales fell 6.2%, reflecting a 2.0% decrease in traffic and a 4.2% decrease in product mix, mainly due to increased promotions, a shift toward wraps, and removal of ripple fries
MARGIN PRESSURE - Restaurant-level profit margin declined due to higher ingredient usage, investments in chicken and tofu portions, and increased promotional activity

Company press release: ID:nBwJ89Bsa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$192.70 mln
$194.90 mln (12 Analysts)
Q2 Loss Per Share
 
$0.22
 
Q2 Adjusted EBITDA
Miss
-$175 mln
$5.53 mln (13 Analysts)
Q2 Loss Per Basic Share
 
$0.22
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 1 "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 14.8% above its August 5 closing price of $6.10

Reuters Recommended Reads
Aug 5 - Portillos Q2 revenue slightly misses expectations as same-restaurant sales fall
Aug 5 - ONE Group Hospitality Q2 revenue falls more than expected amid restaurant closures
Aug 4 - McDonald's US sales growth slows as value push falters

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.)