SG

Sweetgreen's multi-year improvement reversed hard in FY2025. After narrowing losses from -$190M (FY2022) to -$90.4M (FY2024), net income blew back out to -$134M (YoY -48.3%) on revenue of just $679M, a mere +0.4% growth versus the +15%-to-+38% it posted in prior years. Operating margin is -20.5%, ROE -37.6%, and the company is now burning cash at the operating line (-$12.7M operating cash flow, a 129% reversal) while spending $106M on capex — a combination that drained cash 58.5% to $89.2M and cut current assets nearly in half. For a restaurant that lost money for five straight years (accumulated deficit -$1.01B), this is the wrong inflection.

The filing language confirms the numbers are macro- and traffic-driven, not one-off. Management states it has 'been impacted by a decrease in consumer spending during fiscal year 2025, which we expect to continue at least in the near term,' and is responding by retreating: only ~15 Net New Restaurant Openings guided for FY2026 versus 35 in FY2025. As a self-described 'premium offering,' SG is squeezed on both sides — customers trading down to cheaper fast-casual or eating at home — and the hybrid-work shift continues to drain its higher-margin In-Store channel toward delivery/marketplace channels that 'carry higher costs' and 'could pressure margins.' Slower unit growth plus mix shift into lower-margin channels is a hard setup for restoring operating leverage.