Sweetgreen Inc

Previous wording

We are a mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale. Our bold vision is to be as ubiquitous as traditional fast food, but with the transparency and quality that consumers increasingly expect. As of March 31, 2024, we owned and operated 227 restaurants in 19 states and Washington, D.C.

Current wording

We are a mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale. Our bold vision is to be as ubiquitous as traditional fast food, but with the transparency and quality that consumers increasingly expect. As of June 30, 2024, we owned and operated 231 restaurants in 20 states and Washington, D.C.

Previous wording

Opening new restaurants is an important driver of our revenue growth. During the thirteen weeks ended March 31, 2024 and March 26, 2023, we had 6 and 9 Net New Restaurant Openings, respectively, bringing our total count as of March 31, 2024 to 227 restaurants in 19 states and Washington, D.C.

Current wording

Opening new restaurants is an important driver of our revenue growth. During the thirteen weeks ended June 30, 2024 and June 25, 2023, we had 4 and 10 Net New Restaurant Openings, respectively. During thetwenty-six weeks ended June 30, 2024 and June 25, 2023, we had 10 and 19 Net New Restaurant Openings, respectively, bringing our total count as of June 30, 2024 to 231 restaurants in 20 states and Washington, D.C.

Previous wording

We are adding a new protein to our menu, steak, in the second quarter of 2024, which will add a new ingredient for our customer base. With the introduction of beef on our menu, we may experience an increase in commodity cost.

Current wording

During the second quarter of 2024, we introduced steak as a new protein to our menu, which adds a new ingredient for our customer base. With the introduction of beef on our menu, we have and could continue to experience an increase in commodity costs.

Previous wording

(1) No restaurants were excluded from the Comparable Restaurant Base for the thirteen weeks ended March 31, 2024. Our results for the thirteen weeks ended March 26, 2023 have been adjusted to reflect the temporary closures of two restaurants, which were excluded from the Comparable Restaurant Base. Such adjustments did not result in a material change to AUV.

Current wording

(1) One restaurant was excluded from the Comparable Restaurant Base for the thirteen and twenty-six weeks ended June 30, 2024. Three restaurants were excluded from the Comparable Restaurant Base for the thirteen and twenty-six weeks ended June 25, 2023. Such adjustments did not result in a material change to AUV.

Previous wording

(2) Our results for the thirteen weeks ended March 31, 2024 have been adjusted to reflect the temporary closures of three restaurants, which were excluded from the calculation of Same-Store Sales Change. Such adjustments did not result in a material change to Same-Store Sales Change. No restaurants were excluded from the calculation of Same-Store Sales Change during the thirteen weeks ended March 26, 2023.

Current wording

(2) Our results for the thirteen and twenty-six weeks ended June 30, 2024 have been adjusted to reflect the temporary closures of one and four restaurants, respectively, which were excluded from the calculation of Same-Store Sales Change. Such adjustments did not result in a material change to Same-Store Sales Change. Our results for the thirteen and twenty-six weeks ended June 25, 2023 have been adjusted to reflect the temporary closures of one and two restaurants, respectively, which were excluded from the calculation of Same-Store Sales Change. Such adjustments did not result in a material change to Same-Store Sales Change.

Previous wording

Net New Restaurant Openings reflect the number of new Sweetgreen restaurant openings during a given reporting period, net of any permanent Sweetgreen restaurant closures during the same given period. Before we open new restaurants, we incur pre-opening costs, as further described below. During fiscal year 2024 and fiscal year 2025, we plan to integrate our Infinite Kitchen into a greater number of our new restaurants. Beginning in fiscal year 2025, we plan to return to a new restaurant growth rate of 15-20% per year, with fiscal year 2025 targeting the low end of this range and fiscal year 2026 targeting the upper end of this range.

Current wording

Net New Restaurant Openings reflect the number of new Sweetgreen restaurant openings during a given reporting period, net of any permanent Sweetgreen restaurant closures during the same given period. Before we open new restaurants, we incur pre-opening costs, as further described below. During fiscal year 2024 and fiscal year 2025, we plan to integrate our Infinite Kitchen into a greater number of our new restaurants.

Previous wording

AUV is defined as the average trailing revenue for the prior four fiscal quarters for all restaurants in the Comparable Restaurant Base. The measure of AUV allows us to assess changes in guest traffic and per transaction patterns at our restaurants. Fiscal year 2023 was a 53-week year, in order to provide a measurement period that is consistent with comparable periods that span a 52-week year, rather than simply excluding the extra week, we applied an averaging methodology to the last period of fiscal 2023 to adjust for the extra week. Comparable Restaurant Base for any measurement period is defined as all restaurants that have operated for at least twelve full months as of the end of such measurement period, other than any restaurants that had a material, temporary closure during the relevant measurement period. For the thirteen weeks ended March 31, 2024, no restaurants were excluded from the Comparable Restaurant Base. For the thirteen weeks ended March 26, 2023, two restaurants were excluded from the Comparable Restaurant Base to reflect the temporary closure of such restaurants during the period. This adjustment did not result in a material change to AUV.

Current wording

AUV is defined as the average trailing revenue for the prior four fiscal quarters for all restaurants in the Comparable Restaurant Base. The measure of AUV allows us to assess changes in guest traffic and per transaction patterns at our restaurants. Fiscal year 2023 was a 53-week year, and in order to provide a measurement period that is consistent with comparable periods that span a 52-week year, rather than simply excluding the extra week, we applied an averaging methodology to the last period of fiscal 2023 to adjust for the extra week. Comparable Restaurant Base for any measurement period is defined as all restaurants that have operated for at least twelve full months as of the end of such measurement period, other than any restaurants that had a material, temporary closure during the relevant measurement period. For thethirteen and twenty-six weeks ended June 30, 2024, one restaurant was excluded from the Comparable Restaurant Base. Such adjustments did not result in a material change to AUV. For the thirteen and twenty-six weeks ended June 25, 2023, three restaurants were excluded from the Comparable Restaurant Base. Such adjustments did not result in a material change to AUV.

Previous wording

Same-Store Sales Change reflects the percentage change in year-over-year revenue for the relevant fiscal period for all restaurants that have operated for at least 13 full fiscal months as of the end of such fiscal period, excluding the 14th week in any 14-week period and the 53rd week in any 53-week period, as applicable; provided, that for any restaurant that has had a temporary closure (which historically has been defined as a closure of at least five days during which the restaurant would have otherwise been open) during any prior or current fiscal month, such fiscal month, as well as the corresponding fiscal month for the prior or current fiscal year, as applicable, will be excluded when calculating Same-Store Sales Change for that restaurant. Fiscal year 2023 was a 53-week year, which resulted in a misalignment in our comparable weeks in fiscal year 2024. To adjust for this misalignment, in calculating Same-Store Sales Change for each fiscal quarter and the full fiscal year 2024, we shifted each week within fiscal year 2023 forward by one week to better align with the 2024 calendar year, specifically to match the timing of holidays and achieve a more accurate comparable Same-Store Sales Change to the prior period. During the thirteen weeks ended March 31, 2024, three restaurants were excluded from the calculation of Same-Store Sales Change. Such adjustments did not result in a material change to Same-Store Sales Change. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and closures.

Current wording

Same-Store Sales Change reflects the percentage change in year-over-year revenue for the relevant fiscal period for all restaurants that have operated for at least 13 full fiscal months as of the end of such fiscal period, excluding the 14th week in any 14-week period and the 53rd week in any 53-week period, as applicable; provided, that for any restaurant that has had a temporary closure (which historically has been defined as a closure of at least five days during which the restaurant would have otherwise been open) during any prior or current fiscal month, such fiscal month, as well as the corresponding fiscal month for the prior or current fiscal year, as applicable, will be excluded when calculating Same-Store Sales Change for that restaurant. Fiscal year 2023 was a 53-week year, which resulted in a misalignment in our comparable weeks in fiscal year 2024. To adjust for this misalignment, in calculating Same-Store Sales Change for each fiscal quarter and the full fiscal year 2024, we shifted each week within fiscal year 2023 forward by one week to better align with the 2024 calendar year, specifically to match the timing of holidays and achieve a more accurate comparable Same-Store Sales Change to the prior period. During thethirteen and twenty-six weeks ended June 30, 2024, one and four restaurants were excluded from the calculation of Same-Store Sales Change, respectively. During thethirteen and twenty-six weeks ended June 25, 2023, one and two restaurants were excluded from the calculation of Same-Store Sales Change, respectively. Such adjustments did not result in a material change to Same-Store Sales Change. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and closures.

Previous wording

In addition to our consolidated financial statements, which are presented in accordance with GAAP, we present certain non-GAAP financial measures, including Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted

Current wording

In addition to our consolidated financial statements, which are presented in accordance with GAAP, we present certain non-GAAP financial measures, including Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. We believe these measures are useful to investors and others in evaluating our performance because these measures:

Previous wording

items that vary from period to period without any correlation to core operating performance or that

Current wording

•facilitate operating performance comparisons from period to period by isolating the effects of some items that vary from period to period without any correlation to core operating performance or that

Previous wording

•Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as stock-based compensation; loss on disposal of property and equipment; certain other expenses; Spyce acquisition costs; ERP implementation and related costs; legal settlements; and, in certain periods, impairment and closure costs and restructuring charges; and

Current wording

•Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as stock-based compensation; loss on disposal of property and equipment; certain other expenses; Spyce acquisition costs; our enterprise resource planning system (“ERP”) implementation and related costs; legal settlements; and, in certain periods, impairment and closure costs and restructuring charges; and

Previous wording

(7)Represents the amortization costs associated to the implementation from our cloud computing arrangements in relation to our new ERP.

Current wording

(7)Represents the amortization costs associated to the implementation from our cloud computing arrangements in relation to our ERP.

Previous wording

Pre-opening costs primarily consist of rent, wages, travel for training and restaurant opening teams, food, marketing, and other restaurant costs that we incur prior to the opening of a restaurant. These expenses will increase in proportion to the increase of our new restaurant openings. These costs are expensed as incurred. Pre-opening costs depend on the number of new stores we open during each period. As a result, while we expect that pre-opening costs on an absolute dollar basis will fluctuate from period to period, we expect pre-opening costs to begin to increase in fiscal year 2025 in connection with the reacceleration of our new restaurant growth rate described above.

Current wording

Pre-opening costs primarily consist of rent, wages, travel for training and restaurant opening teams, food, marketing, and other restaurant costs that we incur prior to the opening or during the major renovation, of a restaurant. These expenses will increase in proportion to the increase of our new restaurant openings and major renovations. These costs are expensed as incurred. Pre-opening costs depend on the number of new restaurants and major restaurant renovations we open during each period or are planning to open in future periods. As a result, while we expect that pre-opening costs on an absolute dollar basis will fluctuate from period to period, we expect pre-opening costs to begin to increase in fiscal year 2025 in connection with the reacceleration of our new restaurant growth rate described above.

Previous wording

Comparison of the thirteen weeks ended March 31, 2024 and March 26, 2023

Current wording

Comparison of the thirteen and twenty-six weeks ended June 30, 2024 and June 25, 2023

Previous wording

The increase in revenue for the thirteen weeks ended March 31, 2024 was primarily due to an increase of $21.1 million of incremental revenue associated with 41 Net New Restaurant Openings during or subsequent to the thirteen weeks ended March 26, 2023. In addition, $6.4 million of the increase was the result of a positive Same-Store Sales Change of 5% due to menu price increases that were implemented subsequent to the thirteen weeks ended March 26, 2023. The remaining $5.3 million of the increase was due to additional fiscal year-over-year comparable restaurant sales growth, which would have been reflected in our Same-Store Sales Change had we not adjusted for the misalignment in our comparable weeks resulting from fiscal year 2023 being a 53-week year, as described above.

Current wording

The increase in revenue for thetwenty-six weeks ended June 30, 2024 was primarily due to an increase of $39.2 million of incremental revenue associated with 45 Net New Restaurant Openings during or subsequent to thetwenty-six weeks ended June 25, 2023. The remaining increase in revenue was due to an increase in Comparable Restaurant Base revenue of $20.4 million, resulting in a positive Same-Store Sales Change of 7%, primarily due to a 5% benefit from menu price increases that were implemented subsequent to the thirteen weeks ended June 25, 2023 and a 2% increase due to traffic and favorable product mix. The remaining $5.3 million of the increase was due to additional fiscal year-over-year comparable restaurant sales growth, which would have been reflected in our Same-Store Sales Change had we not adjusted for the misalignment in our comparable weeks resulting from fiscal year 2023 being a 53-week year, as described above.

Previous wording

The increase in food, beverage, and packaging costs for the thirteen weeks ended March 31, 2024 was primarily due to the 41 Net New Restaurant Openings during or subsequent to the thirteen weeks ended March 26, 2023, partially offset by a decrease in packaging costs, which were higher in the prior-year period due to a packaging supply chain disruption.

Current wording

The increase in food, beverage, and packaging costs for thetwenty-six weeks ended June 30, 2024 was primarily due to the 45 Net New Restaurant Openings during or subsequent to thetwenty-six weeks ended June 25, 2023, and higher protein cost. These increases were partially offset by a decrease in packaging costs, which were higher in the prior-year period due to a packaging supply chain disruption.

Previous wording

As a percentage of revenue, food, beverage, and packaging costs for the thirteen weeks ended weeks ended March 31, 2024 remained consistent compared to the thirteen weeks ended March 26, 2023, primarily due to menu price increases.

Current wording

As a percentage of revenue, food, beverage, and packaging costs for both the thirteen andtwenty-six weeks ended June 30, 2024 remained relatively consistent compared to the thirteen andtwenty-six weeks ended June 25, 2023, respectively, primarily due to an increase in revenue proportional to the increase in food, beverage, and packaging costs.

Previous wording

The increase in labor and related expenses for the thirteen weeks ended March 31, 2024 was primarily due to the 41 Net New Restaurant Openings during or subsequent to the thirteen weeks ended March 26, 2023. The increase was also due to an increase in staffing expenses across all restaurant locations, primarily related to an increase in prevailing wage rates in many of our markets as a result of continued wage rate inflation in the industry, partially offset by improved labor optimization. The prior year period also included a $1.8 million benefit received during the thirteen weeks ended March 26, 2023, related to refundable employee retention tax credits (“ERC”) issued as part of the Coronavirus Aid, Relief and Economic Security Act (the “Cares Act”).

Current wording

The increase in labor and related expenses for thetwenty-six weeks ended June 30, 2024 was primarily due to the 45 Net New Restaurant Openings during or subsequent to thetwenty-six weeks ended June 25, 2023. The increase was also driven by higher staffing expenses associated with increases in prevailing wage rates in many of our markets, most notably, as of April 1, 2024, California fast food wages increased as result of AB 1228. These increases were partially offset by a $1.8 million benefit related to refundable employee retention tax credits (“ERC”) issued as part of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) as well as an improvement in labor optimization. See Note 11 to our condensed consolidated financial statements included elsewhere in this Quarterly Report for further details on the ERC.

Previous wording

As a percentage of revenue, the decrease in labor and related expenses for the thirteen weeks ended March 31, 2024 was primarily due to higher revenue and improvement in labor optimization, as discussed above compared to the thirteen weeks ended March 26, 2023. These decreases were partially offset by a $1.8 million benefit received during the thirteen weeks ended March 26, 2023, related to a refundable ERC issued as part of the Cares Act.

Current wording

As a percentage of revenue, the decrease in labor and related expenses for thetwenty-six weeks ended June 30, 2024 was primarily due to higher revenue and improvement in labor optimization, partially offset by wage rate increases, as discussed above compared to thetwenty-six weeks ended June 25, 2023. These decreases were partially offset by a $1.8 million benefit received during the thirteen weeks ended March 26, 2023, related to a refundable ERC issued as part of the CARES Act.

Previous wording

The increase in occupancy and related expenses for the thirteen weeks ended March 31, 2024 was primarily due to the 41 Net New Restaurant Openings during or subsequent to the thirteen weeks ended March 26, 2023.

Current wording

The increase in occupancy and related expenses for the thirteen weeks ended June 30, 2024 was primarily due to the 36 Net New Restaurant Openings during or subsequent to the thirteen weeks ended June 25, 2023.

Previous wording

The increase in other restaurant operating costs for the thirteen weeks ended March 31, 2024 was primarily due to the 41 Net New Restaurant Openings during or subsequent to the thirteen weeks ended March 26, 2023. This includes increases in delivery fees, primarily related to the increase in revenue through our Marketplace Channel, utilities and repair and maintenance expenses, credit card and online processing fees related to the increase in revenue, and office systems, kitchen, cleaning and related supplies to support the Net New Restaurant Openings described above.

Current wording

The increase in other restaurant operating costs for the thirteen weeks ended June 30, 2024 was primarily due to the 36 Net New Restaurant Openings during or subsequent to the thirteen weeks ended June 25, 2023. This includes increases in delivery fees, primarily related to the increase in revenue through our Marketplace Channel, credit card and online processing fees related to the increase in revenue, and repair and maintenance expenses.

Previous wording

As a percentage of revenue, other restaurant operating costs for the thirteen weeks ended March 31, 2024 decreased compared to the thirteen weeks ended March 26, 2023, primarily due to higher revenue.

Current wording

As a percentage of revenue, other restaurant operating costs for both the thirteen andtwenty-sixweeks ended June 30, 2024 remained consistent compared to the thirteen andtwenty-six weeks ended June 25, 2023, respectively.

Previous wording

The increase in general and administrative expenses for the thirteen weeks ended March 31, 2024 was primarily due to a $5.1 million benefit received during thethirteen weeks ended March 26, 2023 from ERC, a $0.9 million increase in marketing and advertising costs, and $0.8 million increase in management salaries and benefits including bonus. These increases were partially offset by a $4.6 million decrease in stock-based compensation expense primarily related to the decrease in expense associated with restricted stock units and performance-based restricted stock units issued prior to our IPO.

Current wording

The increase in general and administrative expenses for thetwenty-six weeks ended June 30, 2024 was primarily due to a $5.1 million benefit received during thetwenty-six weeks ended June 25, 2023 from the ERC. The remaining increase was due to an increase in our investment in marketing and advertising and an increase in management salaries and benefits including bonus. These increases were partially offset by a decrease in stock-based compensation expense primarily related to the decrease in expense associated with restricted stock units and performance-based restricted stock units issued prior to our IPO.

Previous wording

As a percentage of revenue, the decrease in general and administrative expenses for the thirteen weeks ended March 31, 2024 was primarily due to the comparatively higher revenue in the current period, partially offset by the net effect of the fluctuations noted above.

Current wording

As a percentage of revenue, the decrease in general and administrative expenses for both the thirteen and twenty-six weeks ended June 30, 2024 was primarily due to the comparatively higher revenue in the current period, partially offset by the net effect of the fluctuations noted above.

Previous wording

The increase in depreciation and amortization for the thirteen weeks ended March 31, 2024 was primarily due to the 41 Net New Restaurant Openings during or subsequent to the thirteen weeks ended March 26, 2023.

Current wording

The increase in depreciation and amortization for the thirteen weeks ended June 30, 2024 was primarily due to the 36 Net New Restaurant Openings during or subsequent to the thirteen weeks ended June 25, 2023.

Previous wording

As a percentage of revenue, depreciation and amortization remained flat for the thirteen weeks ended March 31, 2024 compared to the thirteen weeks ended March 26, 2023 which was primarily due to the increases noted above, offset by comparatively higher revenue in the current period.

Current wording

As a percentage of revenue, depreciation and amortization slightly decreased for the thirteen weeks ended June 30, 2024 compared to the thirteen weeks ended June 25, 2023, which was primarily due to comparatively higher revenue in the current period, partially offset by the increase noted above.

Previous wording

The decrease in pre-opening costs for the thirteen weeks ended March 31, 2024 was primarily due to 6 gross new restaurant openings during thethirteen weeks ended March 31, 2024 compared to 12 gross new restaurant openings in the same quarter of the prior year.

Current wording

The decrease in pre-opening costs for the thirteen weeks ended June 30, 2024 was primarily due to 4 gross new restaurant openings during thethirteen weeks ended June 30, 2024 compared to 10 gross new restaurant openings in the same quarter of the prior year.

Previous wording

As a percentage of revenue, pre-opening costs decreased in the thirteen weeks ended March 31, 2024 compared to the thirteen weeks ended March 26, 2023, due to the variances noted above as well as comparatively higher revenue in the current period.

Current wording

As a percentage of revenue, pre-opening costs decreased in the thirteen and twenty-six weeks ended June 30, 2024 compared to the thirteen weeks ended June 25, 2023, due to the variances noted above as well as comparatively higher revenue in the current period.

Previous wording

During the thirteen weeks ended March 31, 2024, we recorded closure costs of $0.2 million related to lease and related costs associated with previously closed restaurants, including the amortization of operating lease assets, and expenses associated with CAM and real estate taxes.

Current wording

During the thirteen and twenty-six weeks ended June 30, 2024, we recorded closure costs of $0.1 million and $0.3 million, respectively, related to lease and related costs associated with previously closed restaurants, including the amortization of operating lease assets, and expenses associated with CAM and real estate taxes.

Previous wording

The increase in loss on disposal of property and equipment was due to timing of furniture, equipment and fixture replacements at multiple restaurants for the thirteen weeks ended March 31, 2024 compared to the prior year period.

Current wording

The increase in loss on disposal of property and equipment was due to timing of furniture, equipment and fixture replacements at multiple restaurants for the thirteen and twenty-six weeks ended June 30, 2024 compared to the prior year periods.

Previous wording

The decrease in interest income, net, was primarily due to a lower cash balance in our money market accounts during the thirteen weeks ended March 31, 2024 compared to the prior year period.

Current wording

The decrease in interest income, net, was primarily due to a lower cash balance in our money market accounts during the thirteen and twenty-six weeks ended June 30, 2024 compared to the prior year periods.

Previous wording

The change in other expense for each of the thirteen weeks ended March 31, 2024 was primarily due to a change in the fair value of our contingent consideration compared to the prior year, which was issued as part of the Spyce acquisition in the third quarter of fiscal year 2021.

Current wording

The change in other expense for each of the thirteen and twenty-six weeks ended June 30, 2024 was primarily due to a change in the fair value of our contingent consideration compared to the prior year periods, which was issued as part of the Spyce acquisition in the third quarter of fiscal year 2021.

Previous wording

To date, we have funded our operations through proceeds received from previous common stock and preferred stock issuances, our ability to obtain lending commitments and through cash flow from operations. Additionally, in November 2021, we completed our IPO, from which we received net proceeds of $384.7 million from sales of our shares of Class A common stock, after deducting underwriting discounts and commissions and offering expenses. As of March 31, 2024 and December 31, 2023, we had$243.8 million and $257.2 million in cash and cash equivalents, respectively. As of March 31, 2024, we had access to a $43.1 million revolver loan(s) under our 2020 Credit Agreement after giving effect to a $1,945,000 irrevocable standby Letter of Credit outstanding thereunder. As of March 31, 2024, there have been no draws on the revolving facility. Based on our current operating plan, we believe our existing cash and cash equivalents and access to available revolving loan(s), will be sufficient to fund our operating lease obligations, capital expenditures, and working capital needs for at least the next 12 months. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities, available cash balances, and available revolving loan(s). If we are unable to generate positive operating cash flows, additional debt and equity financings may be necessary to sustain future operations, and there can be no assurance that such financing will be available to us on commercially reasonable terms, or at all.

Current wording

To date, we have funded our operations through proceeds received from previous common stock and preferred stock issuances, our ability to obtain lending commitments and through cash flow from operations. Additionally, in November 2021, we completed our IPO, from which we received net proceeds of $384.7 million from sales of our shares of Class A common stock, after deducting underwriting discounts and commissions and offering expenses. As of June 30, 2024 and December 31, 2023, we had$244.6 million and $257.2 million in cash and cash equivalents, respectively. As of June 30, 2024, we had access to a $43.1 million revolver loan(s) under our 2020 Credit Agreement after giving effect to a $1.9 million irrevocable standby Letter of Credit outstanding thereunder. As of June 30, 2024, there have been no draws on the revolving facility. Based on our current operating plan, we believe our existing cash and cash equivalents and access to available revolving loan(s), will be sufficient to fund our operating lease obligations, capital expenditures, and working capital needs for at least the next 12 months. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities, available cash balances, and available revolving loan(s). If we are unable to generate positive operating cash flows, additional debt and equity financings may be necessary to sustain future operations, and there can be no assurance that such financing will be available to us on commercially reasonable terms, or at all.

Previous wording

Our primary liquidity and capital requirements are for new restaurant development, initiatives to improve the team member and customer experience in our restaurants, marketing-related costs, research and development costs, working capital and general corporate needs. Additionally, during thethirteen weeks ended March 31, 2024, we made a cash payment of approximately $3.9 million related to the Spyce milestone payment. See Note 3 for further details. We have not required significant working capital because customers generally pay using cash or credit and debit cards and, as a result, our operations do not require significant receivables. Additionally, our operations do not require significant inventories due, in part, to our use of numerous fresh ingredients. Further, we are able to sell most of our inventory items before payment is dueto the supplier of such items.

Current wording

Our primary liquidity and capital requirements are for new restaurant development, initiatives to improve the team member and customer experience in our restaurants, marketing-related costs, research and development costs, working capital and general corporate needs. Additionally, during thetwenty-six weeks ended June 30, 2024, we made a cash payment of approximately $3.9 million related to the Spyce milestone payment. See Note 3 for further details. We have not required significant working capital because customers generally pay using cash or credit and debit cards and, as a result, our operations do not require significant receivables. Additionally, our operations do not require significant inventories due, in part, to our use of numerous fresh ingredients. Further, we are able to sell most of our inventory items before payment is dueto the supplier of such items.

Previous wording

For the thirteen weeks ended March 31, 2024, cash provided by (used in) operating activities increased $6.6 million compared to the thirteen weeks ended March 26, 2023. The increase was primarily due to a $2.1 million increase in income after excluding non-cash items and the impact of unfavorable working capital fluctuations of $4.4 million, which primarily related to the timing of payroll and other payments in the ordinary course of business.

Current wording

For the twenty-six weeks ended June 30, 2024, cash provided by operating activities increased $17.7 million compared to the twenty-six weeks ended June 25, 2023. The increase was primarily due to a $6.8 million increase in income after excluding non-cash items and the impact of favorable working capital fluctuations of $11.0 million, which primarily related to the timing of payroll and other payments in the ordinary course of business.

Previous wording

Forthe thirteen weeks ended March 31, 2024, cash used in investing activities was$(15.0) million, a decrease of$17.4 million compared tothe thirteen weeks ended March 26, 2023. Investing activities forthe thirteen weeks ended March 31, 2024 consisted primarily of purchases of property and equipment of $13.4 million related to 6 gross new restaurant openings (excluding tenant improvement allowances), restaurants in process, renovations, and prepayments associated with the deployment of our Infinite Kitchen and other restaurants related equipment. In addition we had cash outflow forthe thirteen weeks ended March 31, 2024 of $1.6 million related to purchase of intangible assets.

Current wording

Forthe twenty-six weeks ended June 30, 2024, cash used in investing activities was$(36.3) million, a decrease of$22.2 million compared tothe twenty-six weeks ended June 25, 2023. Investing activities forthe twenty-six weeks ended June 30, 2024 consisted primarily of purchases of property and equipment of $32.7 million related to 10 gross new restaurant openings (excluding tenant improvement allowances), restaurants in process, renovations, and prepayments associated with the deployment of our Infinite Kitchen and other restaurants related equipment. In addition we had cash outflow forthe twenty-six weeks ended June 30, 2024 of $3.6 million related to purchase of intangible assets.

Previous wording

Investing activities forthe thirteen weeks ended March 26, 2023 consisted primarily of purchases of property and equipment of $30.9 million related to 12 gross new restaurant openings (excluding tenant improvement allowances), restaurants in process, renovations, and prepayments associated with the deployment of our Infinite Kitchen and other restaurants related equipment. In addition we had cash outflow forthe thirteen weeks ended March 26, 2023 of $1.5 million related to purchase of intangible assets.

Current wording

Investing activities forthe twenty-six weeks ended June 25, 2023 consisted primarily of purchases of property and equipment of $55.8 million related to 22 gross new restaurant openings (excluding tenant improvement allowances), restaurants in process, renovations, and prepayments associated with the deployment of our Infinite Kitchen and other restaurants related equipment. In addition we had cash outflow forthe twenty-six weeks ended June 25, 2023 of $2.6 million related to purchase of intangible assets.

Previous wording

For the thirteen weeks ended March 31, 2024, cash used in financing activities increased $2.6 million compared to the thirteen weeks ended March 26, 2023. This was primarily due to a payment associated with the contingent consideration offset by an increase in proceeds received from stock option exercises.

Current wording

For the twenty-six weeks ended June 30, 2024, cash provided by financing activities decreased $0.8 million compared to the twenty-six weeks ended June 25, 2023. This was primarily due to a payment associated with the contingent consideration offset by an increase in proceeds received from stock option exercises.