Sweetgreen 2025 Q3 Earnings Deepened Losses and Worsened Guidance

Sweetgreen (SG) reported Q3 2025 earnings that significantly missed expectations, with a widened net loss and downwardly revised guidance. The stock price plummeted post-earnings, reflecting investor concerns over operational challenges and strategic shifts.

Revenue

, . This marks a continuation of sales declines, .

Earnings/Net Income

, , representing a 72.2% wider loss. , . The deteriorating profitability underscores ongoing operational and financial challenges. The EPS and net loss figures reflect a significant miss relative to expectations, raising concerns about the company’s path to profitability.

Post-Earnings Price Action Review

The strategy of buying Sweetgreen shares on the revenue raise date and holding for 30 days has proven ineffective, with a 3-year percentage change of -68.8% versus the S&P 500’s 26.4%. This underperformance highlights poor risk-adjusted returns, as the stock’s volatility (beta of 1.5) failed to translate into gains. Even short-term holding periods yielded no immediate benefits, suggesting the market discounted the revenue raise.

CEO Commentary

CEO emphasized operational execution and menu innovation as priorities, noting the sale of Spyce to Wonder as a liquidity boost. He acknowledged challenges in attracting younger customers and outlined plans to refine pricing and enhance customer experience.

Guidance

, . , contrasting with prior optimism.

Additional News

, , marked a shift in focus toward core operations. The company also announced layoffs in its support center and the removal of air-fried Ripple Fries to streamline menu offerings. Additionally, the transition from the Sweetpass subscription model to the SG Rewards loyalty program aimed to rebuild customer engagement, though early data showed mixed results.