Sweetgreen, Inc.
For the period ended Sep 27, 2026. Filed Nov 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2026 · Filed Nov 6, 2026
SG$12.01+4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-28; filed 2026-08-07.
0001628280-26-054522
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-27; filed 2026-11-06.
0001628280-26-071243
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 104 current paragraphs.
60 unchanged; 38 reworded; 5 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 19 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
We believe good taste starts long before the first bite. Since 2007, we have been on a mission to create healthy communities by connecting people to real food. Our longstanding relationships with farmers bring seasonal ingredients to our kitchens, where teams cook from scratch every day. The result is a fresh, flavorful approach to fast casual that makes eating well something to look forward to. As of September 27, 2026, we owned and operated 290 restaurants in 26 states and Washington, D.C.
Current report
As a premium offering in the fast-casual industry, we may be more exposed during periods of economic weakness to consumers choosing to cook at home to save money or opting for lower-priced fast-casual alternatives.
Current report
Restaurant Activity
Current report
The following table details restaurant unit data for the periods indicated.
Current report
As a percentage of revenue, food, beverage, and packaging costs for the thirteen weeks ended September 27, 2026 decreased compared to the thirteen weeks ended September 28, 2025, primarily driven by a one-time write-off of discontinued materials and higher packaging costs related to tariffs and duties recognized in the prior year period, as well as lower ingredient costs in the current year resulting from supply chain savings initiatives.
Removed paragraphs (3)
Previous report
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 28, 2026, we owned and operated 287 restaurants in 24 states and Washington, D.C.
Previous report
Separately, in August 2026, we were notified of a supplier-initiated recall involving jalapeños. We proactively removed and discarded all jalapeños from that supplier and related products from affected areas. We are currently unable to predict the effect this situation may have on consumer demand. We continue to maintain rigorous food safety protocols across our supply chain and restaurant operations, including supplier qualification requirements, cold chain management, team member training, and third-party food safety audits, and will continue to monitor the situation.
Previous report
Tariff costs have been absorbed into our supplier pricing, and while the impact is no longer separately identifiable, we expect it to continue at a similar magnitude to the prior year. Actual impact may vary based on tariff policy changes.
Reworded paragraphs (38)
Previous wording
You should read the following discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial statements and related notes included elsewhere in this report. This discussion contains forward-looking statements based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in the section titled “Risk Factors” included under Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025. See the section titled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report. Unless the context otherwise requires, all references in this section to “we,” “us,” “our,” the “Company,” or “Sweetgreen” refer to Sweetgreen, Inc. and its subsidiaries.
Current wording
You should read the following discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial statements and related notes included elsewhere in this report. This discussion contains forward-looking statements based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in the section titled “Risk Factors” included under Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025 as updated by our Quarterly Report on Form 10-Q for the fiscal quarter ended June 28, 2026. See the section titled “Special Note Regarding Forward-Looking Statements” in this Quarterly Report. Unless the context otherwise requires, all references in this section to “we,” “us,” “our,” the “Company,” or “Sweetgreen” refer to Sweetgreen, Inc. and its subsidiaries.
Previous wording
Opening new restaurants, including those with Infinite Kitchen technology, is an important driver of our revenue growth. One of our strategies is to grow our footprint in both existing and new U.S. markets and, over time, internationally. During the thirteen weeks ended June 28, 2026 and June 29, 2025, we had 2 and 9 Net New Restaurant Openings, respectively. During thetwenty-six weeks ended June 28, 2026 and June 29, 2025, we had 6 and 14 Net New Restaurant Openings, respectively, bringing our total count as of June 28, 2026 to 287 restaurants in 24 states and Washington, D.C.
Current wording
Opening new restaurants, including those with Infinite Kitchen technology, is an important driver of our revenue growth. One of our strategies is to grow our footprint in both existing and new U.S. markets and, over time, internationally. During the thirteen weeks ended September 27, 2026 and September 28, 2025, we had 3 and 6 Net New Restaurant Openings, respectively. During thethirty-nine weeks ended September 27, 2026 and September 28, 2025, we had 9 and 20 Net New Restaurant Openings, respectively, bringing our total count as of September 27, 2026 to 290 restaurants in 26 states and Washington, D.C.
Previous wording
As of June 28, 2026, we utilized the Infinite Kitchen, a kitchen automation technology, in 35 of our 287 restaurants. We incorporate the Infinite Kitchen technology into new and existing restaurants based, in large part, upon our evaluation of the potential economic and certain other benefits for those restaurants.
Current wording
As of September 27, 2026, we utilized the Infinite Kitchen, a kitchen automation technology, in 36 of our 290 restaurants. We incorporate the Infinite Kitchen technology into certain new and existing restaurants based, in large part, upon our evaluation of the potential economic and certain other benefits for those restaurants.
Previous wording
As a premium offering in the fast-casual industry, we are exposed both to consumers trading the convenience of food away from home for the cost benefit of cooking, and to consumers selecting less expensive fast-casual alternatives during weaker economic periods. In fiscal year 2026, we expect approximately 13 Net New Restaurant Openings, with about half featuring Infinite Kitchen units.
Current wording
In fiscal year 2026, we expect approximately 10 Net New Restaurant Openings, with about half featuring Infinite Kitchen units. We expect fewer Net New Restaurant Openings in fiscal year 2027 than in fiscal year 2026.
Previous wording
We have historically been able to partially offset rising costs - including as a result of inflation, tariffs, wage increases and increases in cost of goods sold - through gradual menu price increases, customer service and delivery fees, and operational efficiencies. There can be no assurance that we will be able to continue this practice in the current or future macroeconomic or regulatory environment. We also continue to see variability in our customer traffic patterns, including as a result of many workplaces adopting remote or hybrid models, which has shifted sales away from our In-Store Channel. Our Native Delivery, Outpost and Catering, and Marketplace Channels carry higher costs due to third-party fees, elevated refund rates, and promotional activity, and a continued shift in sales mix toward these channels could pressure margins. However, we expect margins on these channels to improve over time as we achieve greater scale.
Current wording
We have historically been able to partially offset rising costs, including inflation, tariffs, wage increases, and higher cost of goods sold, through gradual menu price increases, service and delivery fees, and operational efficiencies. There can be no assurance that we will be able to continue doing so in the current or future macroeconomic or regulatory environment.
Previous wording
For the first half of fiscal year 2026, tariffs had minimal net impact on our average new unit development cost due to mitigation efforts including advance purchasing, strategic sourcing, and favorable trade policy changes. Management remains committed to mitigating the impact of tariff costs across our supply chain, restaurant build-outs and equipment through ongoing sourcing and cost-optimization strategies that we and our suppliers have implemented and continue to implement. Any future changes to the U.S. government’s trade policies may impact our estimates regarding tariff costs and the success of our mitigation strategies.
Current wording
In fiscal year 2026 to date, tariffs had minimal net impact on our average new unit development cost due to mitigation efforts including advance purchasing, strategic sourcing, and favorable trade policy changes. Tariff costs on our food and packaging have been absorbed into our supplier pricing and are no longer separately identifiable. Management remains committed to mitigating the impact of tariff costs across our supply chain, restaurant build-outs and equipment through ongoing sourcing and cost-optimization strategies that we and our suppliers have implemented and continue to implement. Any future changes to the U.S. government’s trade policies may impact our estimates regarding tariff costs and the success of our mitigation strategies.
Previous wording
In July 2026, U.S. authorities identified a multistate outbreak of cyclosporiasis, a gastrointestinal illness. No ingredients in our supply chain have been identified as part of the cyclosporiasis outbreak investigation, but the ongoing incident has contributed to reduced consumer demand for fresh prepared foods, including salads, which has negatively impacted our customer traffic and sales to date in the third quarter of fiscal year 2026.
Current wording
In July 2026, U.S. authorities identified a multistate outbreak of cyclosporiasis, a gastrointestinal illness. No ingredients in our supply chain were identified as part of the cyclosporiasis outbreak investigation, but the incident contributed to reduced consumer demand for fresh prepared foods, including salads, which negatively impacted our customer traffic in the third quarter of fiscal year 2026.
Previous wording
(1) Eight restaurants were excluded from the Comparable Restaurant Base for the thirteen and twenty-six weeks ended June 28, 2026. One restaurant was excluded from the Comparable Restaurant Base for the thirteen and twenty-six weeks ended June 29, 2025. Such adjustments did not result in a material change to AUV.
Current wording
(1) Nine restaurants were excluded from the Comparable Restaurant Base for the thirteen and thirty-nine weeks ended September 27, 2026. Three restaurants were excluded from the Comparable Restaurant Base for the thirteen and thirty-nine weeks ended September 28, 2025. Such adjustments did not result in a material change to AUV.
Previous wording
(2) Our results for the thirteen weeks ended June 28, 2026 have been adjusted to reflect the closures of seven restaurants, including one temporary closure and six permanent closures, which were excluded from the calculation of Same-Store Sales Change. Our results for the twenty-six weeks ended June 28, 2026 have been adjusted to reflect the closures of 14 restaurants, including eight temporary closures and six permanent closures, which were excluded from the calculation of Same-Store Sales Change. Our results for the thirteen and twenty-six weeks ended June 29, 2025 have been adjusted to reflect the temporary closures of one and eight 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 for either period.
Current wording
(2) Our results for the thirteen weeks ended September 27, 2026 have been adjusted to reflect the closures of 11 restaurants, including two temporary closures and nine permanent closures, which were excluded from the calculation of Same-Store Sales Change. Our results for the thirty-nine weeks ended September 27, 2026 have been adjusted to reflect the closures of 19 restaurants, including 10 temporary closures and nine permanent closures, which were excluded from the calculation of Same-Store Sales Change. Our results for the thirteen and thirty-nine weeks ended September 28, 2025 have been adjusted to reflect the temporary closures of six and thirteen 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 for either period.
Previous wording
Comparison of the thirteen and twenty-six weeks ended June 28, 2026 and June 29, 2025
Current wording
Comparison of the thirteen and thirty-nine weeks ended September 27, 2026 and September 28, 2025
Previous wording
The following table summarizes our results of operations for thetwenty-six weeks ended June 28, 2026 and June 29, 2025:
Current wording
The following table summarizes our results of operations for thethirty-nine weeks ended September 27, 2026 and September 28, 2025:
Previous wording
During the twenty-six weeks ended June 28, 2026, the Company reported net income, primarily reflecting the impact of the $160.6 million gain on disposal of business from the Spyce sale. The Company reported a loss from operations for the period.
Current wording
During the thirty-nine weeks ended September 27, 2026, the Company reported net income, primarily reflecting the impact of the $160.5 million gain on disposal of business from the Spyce sale. The Company reported a loss from operations for the period.
Previous wording
Revenue increased for the thirteen weeks ended June 28, 2026 compared to the thirteen weeks ended June 29, 2025, primarily due to an increase of $18.4 million of incremental revenue associated with 36 Net New Restaurant Openings during or subsequent to the thirteen weeks ended June 29, 2025. This increase in revenue was partially offset by a decrease in Comparable Restaurant Base revenue of $11.2 million, resulting in a negative Same-Store Sales Change of 6.2%, reflecting a 2.0% decrease in traffic and a 4.2% decrease in product mix. The decrease in mix was primarily driven by increased promotional activity, a shift in menu mix towards wraps, and the removal of ripple fries.
Current wording
Revenue increased for the thirteen weeks ended September 27, 2026 compared to the thirteen weeks ended September 28, 2025, primarily due to an increase of $13.8 million of incremental revenue associated with 30 Net New Restaurant Openings during or subsequent to the thirteen weeks ended September 28, 2025. This increase in revenue was partially offset by a decrease in Comparable Restaurant Base revenue of $10.7 million. Same-Store Sales Change was (6.4)%, reflecting a 4.9% decrease in traffic and a 2.1% decrease in product mix, partially offset by a 0.6% benefit from menu price increases implemented during the current year period. The decrease in traffic was primarily driven by reduced consumer demand resulting from the cyclosporiasis outbreak impacting the current year period. The decrease in mix was primarily driven by a shift in menu mix towards wraps.
Previous wording
Revenue increased for the twenty-six weeks ended June 28, 2026 compared to the twenty-six weeks ended June 29, 2025, primarily due to an increase of $34.8 million of incremental revenue associated with 41 Net New Restaurant Openings during or subsequent to the twenty-six weeks ended June 29, 2025. This increase in revenue was partially offset by a decrease in Comparable Restaurant Base revenue of $31.9 million, resulting in a negative Same-Store Sales Change of 9.3%, reflecting a 3.4% decrease in product mix and a 6.3% decrease in traffic, partially offset by a 0.4% benefit from menu price increases that were implemented during the fiscal year ended December 28, 2025. The decrease in mix was primarily driven by increased promotional activity, a shift in menu mix towards wraps, and the removal of ripple fries.
Current wording
Revenue increased for the thirty-nine weeks ended September 27, 2026 compared to the thirty-nine weeks ended September 28, 2025, primarily due to an increase of $48.5 million of incremental revenue associated with 44 Net New Restaurant Openings during or subsequent to the thirty-nine weeks ended September 28, 2025. This increase in revenue was partially offset by a decrease in Comparable Restaurant Base revenue of $42.6 million, resulting in a negative Same-Store Sales Change of 8.4%, reflecting a 5.9% decrease in traffic and a 2.9% decrease in product mix, partially offset by a 0.4% benefit from menu price increases that were implemented during fiscal years 2025 and 2026. The decrease in mix was primarily driven by increased promotional activity, a shift in menu mix towards wraps, and the removal of ripple fries.
Previous wording
As a percentage of revenue, food, beverage, and packaging costs for the thirteen and twenty-six weeks ended June 28, 2026 increased compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily driven by higher overall ingredient usage, investments in chicken and tofu portions, and increased promotional activity. These increases were partially offset by lower ingredient costs resulting from supply chain savings initiatives.
Current wording
As a percentage of revenue, food, beverage, and packaging costs for the thirty-nine weeks ended September 27, 2026 increased compared to the thirty-nine weeks ended September 28, 2025, primarily driven by investments in chicken and tofu portions and higher overall ingredient usage. These increases were partially offset by a one-time write-off of discontinued materials and higher packaging costs related to tariffs and duties recognized in the prior year period, as well as lower ingredient costs resulting from supply chain savings initiatives.
Previous wording
As a percentage of revenue, labor and related expenses for the thirteen and twenty-six weeks ended June 28, 2026 increased compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to deleverage from lower sales volume and wage inflation.
Current wording
As a percentage of revenue, labor and related expenses for the thirteen and thirty-nine weeks ended September 27, 2026 increased compared to the thirteen and thirty-nine weeks ended September 28, 2025, primarily due to deleverage from lower sales volume, labor inefficiencies, and wage inflation.
Previous wording
As a percentage of revenue, occupancy and related expenses for the thirteen and twenty-six weeks ended June 28, 2026 increased compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to deleverage from lower sales volume.
Current wording
As a percentage of revenue, occupancy and related expenses for the thirteen and thirty-nine weeks ended September 27, 2026 increased compared to the thirteen and thirty-nine weeks ended September 28, 2025, primarily due to deleverage from lower sales volume.
Previous wording
As a percentage of revenue, other restaurant operating costs for the thirteen and twenty-six weeks ended June 28, 2026 increased compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to deleverage from lower sales volume and, to a lesser extent, higher utilities.
Current wording
As a percentage of revenue, other restaurant operating costs for the thirteen and thirty-nine weeks ended September 27, 2026 increased compared to the thirteen and thirty-nine weeks ended September 28, 2025, primarily due to deleverage from lower sales volume, as well as increases in repairs and maintenance and delivery fees.
Previous wording
General and administrative expenses on a dollar basis decreased for the twenty-six weeks ended June 28, 2026 compared to the twenty-six weeks ended June 29, 2025, primarily due to a $7.2 million decrease in stock-based compensation expense, primarily related to the decrease in expenses associated with restricted stock units and performance-based restricted stock units issued prior to our IPO, and a $3.1 million decrease in management salary and benefits expense.
Current wording
General and administrative expenses on a dollar basis decreased for the thirteen weeks ended September 27, 2026 compared to the thirteen weeks ended September 28, 2025, primarily due to a $2.5 million decrease in stock-based compensation expense, primarily related to the decrease in expenses associated with restricted stock units and performance-based restricted stock units issued prior to our IPO, and a $0.5 million decrease in management salary and benefits expense. These decreases were partially offset by higher marketing spend.
Previous wording
General and administrative expenses on a dollar basis decreased for the thirteen weeks ended June 28, 2026 compared to the thirteen weeks ended June 29, 2025, primarily due to a $2.8 million decrease in stock-based compensation expense, primarily related to the decrease in expenses associated with restricted stock units and performance-based restricted stock units issued prior to our IPO, and a $1.2 million decrease in management salary and benefits expense.
Current wording
General and administrative expenses on a dollar basis decreased for the thirty-nine weeks ended September 27, 2026 compared to the thirty-nine weeks ended September 28, 2025, primarily due to a $9.7 million decrease in stock-based compensation expense, primarily related to the decrease in expenses associated with restricted stock units and performance-based restricted stock units issued prior to our IPO, and a $3.6 million decrease in management salary and benefits expense.
Previous wording
As a percentage of revenue, general and administrative expenses for the thirteen and twenty-six weeks ended June 28, 2026 decreased compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to the net effect of the fluctuations noted above.
Current wording
As a percentage of revenue, general and administrative expenses for the thirteen and thirty-nine weeks ended September 27, 2026 decreased compared to the thirteen and thirty-nine weeks ended September 28, 2025, primarily due to the net effect of the fluctuations noted above.
Previous wording
As a percentage of revenue, depreciation and amortization for the thirteen weeks ended June 28, 2026 remained flat compared to the thirteen weeks ended June 29, 2025.
Current wording
As a percentage of revenue, depreciation and amortization for the thirteen weeks ended September 27, 2026 remained relatively consistent compared to the thirteen weeks ended September 28, 2025.
Previous wording
As a percentage of revenue, depreciation and amortization for the twenty-six weeks ended June 28, 2026 increased compared to the twenty-six weeks ended June 29, 2025, primarily related to the increase in the total depreciable base, driven by our acceleration of new restaurant growth in the back half of fiscal year 2025 as well as the change in sales volume.
Current wording
As a percentage of revenue, depreciation and amortization for the thirty-nine weeks ended September 27, 2026 increased compared to the thirty-nine weeks ended September 28, 2025, primarily related to the increase in the total depreciable base, driven by our acceleration of new restaurant growth in the back half of fiscal year 2025 as well as the change in sales volume.
Previous wording
As a percentage of revenue, pre-opening costs for the thirteen and twenty-six weeks ended June 28, 2026 decreased compared to the thirteen and twenty-six weeks ended June 29, 2025 due to the timing and volume of new restaurant growth.
Current wording
As a percentage of revenue, pre-opening costs for the thirteen and thirty-nine weeks ended September 27, 2026 decreased compared to the thirteen and thirty-nine weeks ended September 28, 2025 due to the timing and volume of new restaurant growth.
Previous wording
Impairment and closure costs on a dollar basis decreased for both the thirteen and twenty-six weeks ended June 28, 2026 compared to the thirteen and twenty-six weeks ended June 29, 2025 primarily due to non-cash impairment charges related to property and equipment and the related operating lease assets of two of our restaurants in the current year period compared to five of our restaurants in the prior year.
Current wording
Impairment and closure costs on a dollar basis decreased for both the thirteen and thirty-nine weeks ended September 27, 2026 compared to the thirteen and thirty-nine weeks ended September 28, 2025 primarily due to a decrease in non-cash impairment charges related to property and equipment and operating lease assets, as well as a decrease in closure costs due to gains recognized on lease terminations in the current year periods.
Previous wording
Loss on disposal of property and equipment on a dollar basis increased for both the thirteen and twenty-six weeks ended June 28, 2026 compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to the disposal of equipment at closed or relocated stores.
Current wording
Loss on disposal of property and equipment on a dollar basis decreased for both the thirteen and thirty-nine weeks ended September 27, 2026 compared to the thirteen and thirty-nine weeks ended September 28, 2025, primarily due to the disposal of specialized kitchen equipment in the prior year period.
Previous wording
Restructuring charges for both the thirteen and twenty-six weeks ended June 28, 2026 and June 29, 2025 are primarily related to our former Sweetgreen Support Center, which we vacated in fiscal year 2022, including continued amortization of the operating lease asset and related real estate andcommon area maintenance charges. Additionally, during the thirteen and twenty-six weeks ended June 29, 2025 we experienced additional restructuring costs including severance and related benefits associated with a reduction in force at our Sweetgreen Support Center and costs associated with vacating our former New York office space.
Current wording
Restructuring charges for both the thirteen and thirty-nine weeks ended September 27, 2026 and September 28, 2025 are primarily related to our former Sweetgreen Support Center, which we vacated in fiscal year 2022, including continued amortization of the operating lease asset and related real estate and common area maintenance charges. Additionally, during the thirteen and thirty-nine weeks ended September 28, 2025 we experienced additional restructuring costs including severance and related benefits associated with a reduction in force at our Sweetgreen Support Center and costs associated with vacating our former New York office space.
Previous wording
Interest income, net, decreased for the thirteen and twenty-six weeks ended June 28, 2026 compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to a lower interest rate and lower cash balance in our money market accounts.
Current wording
Interest income, net, decreased for the thirteen and thirty-nine weeks ended September 27, 2026 compared to the thirteen and thirty-nine weeks ended September 28, 2025, primarily due to a lower interest rate and lower cash balance in our money market accounts.
Previous wording
During the twenty-six weeks ended June 28, 2026 we completed the sale of Spyce and certain assets relating to the kitchen automation technology known as the “Infinite Kitchen” and other related kitchen automation technology to certain subsidiaries of Wonder for total consideration of $186.4 million, made up of cash of $100 million and Series C preferred stock of Wonder with an implied value of $86.4 million. In connection therewith, we recorded a pre-tax gain of $160.6 million.
Current wording
During the thirty-nine weeks ended September 27, 2026 we completed the sale of Spyce and certain assets relating to the kitchen automation technology known as the “Infinite Kitchen” and other related kitchen automation technology to certain subsidiaries of Wonder for total consideration of $186.4 million, made up of cash of $100 million and Series C preferred stock of Wonder with an implied value of $86.4 million. In connection therewith, we recorded a pre-tax gain of $160.5 million.
Previous wording
Other expense for the thirteen and twenty-six weeks ended June 28, 2026 increased compared to the thirteen and twenty-six weeks ended June 29, 2025, primarily due to a change in the fair value of our contingent consideration liability in the prior year period, which was issued as part of the Spyce acquisition in the third quarter of fiscal year 2021. The contingent consideration liability was fully extinguished upon payment of the final milestone during the twenty-six weeks ended June 28, 2026.
Current wording
The change in other expense for both the thirteen and thirty-nine weeks ended September 27, 2026 compared to the thirteen and thirty-nine weeks ended September 28, 2025 was primarily due to a change in the fair value of our contingent consideration liability in the prior year period, which was issued as part of the Spyce acquisition in the third quarter of fiscal year 2021. The contingent consideration liability was fully extinguished upon payment of the final milestone during the thirty-nine weeks ended September 27, 2026.
Previous wording
The effective income tax rates for the thirteen weeks ended June 28, 2026 and June 29, 2025 were 0% and 0.4%, respectively, primarily due to the full valuation allowance on our net deferred tax assets.
Current wording
The effective income tax rates for the thirteen weeks ended September 27, 2026 and September 28, 2025 were 0% and 0.2%, respectively, primarily due to the full valuation allowance on our net deferred tax assets.
Previous wording
The effective income tax rate increased 1.4% for the twenty-six weeks ended June 28, 2026 compared to the twenty-six weeks ended June 29, 2025 due to the gain recognized from the Spyce sale completed in early 2026.
Current wording
The effective income tax rate increased 2.2% for the thirty-nine weeks ended September 27, 2026 compared to the thirty-nine weeks ended September 28, 2025 due to the gain recognized from the Spyce sale completed in early 2026.
Previous wording
To date, we have funded our operations through proceeds received from common stock and preferred stock issuances and debt incurrences, and through cash flow from operations. During the twenty-six weeks ended June 28, 2026, we completed the sale of Spyce to Wonderfor total consideration of $186.4 million, consisting of$100 million in cash and shares of Series C Preferred Stock of Wonder with an implied value of$86.4 million. As of June 28, 2026 and December 28, 2025, we had $142.6 million and $89.2 million in cash and cash equivalents, respectively. Based on our current operating plan, we believe our existing cash and cash equivalents 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 and available cash balances. 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 common stock and preferred stock issuances and debt incurrences, and through cash flow from operations. During the thirty-nine weeks ended September 27, 2026, we completed the sale of Spyce to Wonderfor total consideration of $186.4 million, consisting of$100 million in cash and shares of Series C Preferred Stock of Wonder with an implied value of$86.4 million. As of September 27, 2026 and December 28, 2025, we had $119.8 million and $89.2 million in cash and cash equivalents, respectively. Based on our current operating plan, we believe our existing cash and cash equivalents 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 and available cash balances. 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 funding the current operations in our restaurants and Sweetgreen Support Center, new restaurant development, including the deployment of Infinite Kitchen technology, initiatives to improve the customer experience in our restaurants, and general corporate needs. Additionally, during the twenty-six weeks ended June 28, 2026, we made a cash payment of approximately$5.4 million related to the third Spyce milestone payment. See Note 3, Fair Value, in the accompanying condensed consolidated financial statements included in Part I, Item 1 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 due to the supplier of such items.
Current wording
Our primary liquidity and capital requirements are funding the current operations in our restaurants and Sweetgreen Support Center, new restaurant development, including the deployment of Infinite Kitchen technology, initiatives to improve the customer experience in our restaurants, and general corporate needs. Additionally, during the thirty-nine weeks ended September 27, 2026, we made a cash payment of approximately$5.4 million related to the third Spyce milestone payment. See Note 3, Fair Value, in the accompanying condensed consolidated financial statements included in Part I, Item 1 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 due to the supplier of such items.
Previous wording
During the twenty-six weeks ended June 28, 2026, we incurred approximately $22.5 million in capital expenditures. We expect capital expenditures to decrease in 2026, primarily related to the volume of expected new store openings and Infinite Kitchens.
Current wording
During the thirty-nine weeks ended September 27, 2026, we incurred approximately $33.8 million in capital expenditures related to new store openings and Infinite Kitchens.
Previous wording
For the twenty-six weeks ended June 28, 2026, cash used in operating activities increased by $14.9 million compared to the twenty-six weeks ended June 29, 2025. This change was primarily due to a $16.1 million decrease in income after excluding non-cash items, including the net effect of the gain recognized on the sale of Spyce, as well asa$5.4 million Spyce milestone payment, partially offset by the $4.3 million impact of other favorable working capital fluctuations, driven by the timing of rent expense, payroll, and prepaid expenses.
Current wording
For the thirty-nine weeks ended September 27, 2026, cash used in operating activities increased by $24.4 million compared to the thirty-nine weeks ended September 28, 2025. This change was primarily due to a $17.9 million decrease in income after excluding non-cash items, including the net effect of the gain recognized on the sale of Spyce, as well asa$3.1 million increase in cash paid for Spyce milestone payments, andthe $3.4 million impact of other unfavorable working capital fluctuations.
Previous wording
For the twenty-six weeks ended June 28, 2026, cash provided by investing activities was $73.7 million, an increase of $118.2 million compared to the twenty-six weeks ended June 29, 2025. The change was primarily driven by the $100.0 million of cash consideration received from the Spyce sale, as well as a $17.8 million decrease in purchases of property and equipment, primarily due to fewer new restaurant openings in the current year.
Current wording
For the thirty-nine weeks ended September 27, 2026, cash provided by investing activities was $61.0 million, an increase of $143.1 million compared to the thirty-nine weeks ended September 28, 2025. The change was primarily driven by the $100.0 million of cash consideration received from the Spyce sale, as well as a $42.4 million decrease in purchases of property and equipment, primarily due to fewer new restaurant openings in the current year.
Previous wording
For the twenty-six weeks ended June 28, 2026, cash used in financing activities increased by $3.0 million compared to the twenty-six weeks ended June 29, 2025, primarily due to a decrease in proceeds from stock option exercises.
Current wording
For the thirty-nine weeks ended September 27, 2026, cash provided by financing activities decreased by $2.6 million compared to the thirty-nine weeks ended September 28, 2025, primarily due to a decrease in proceeds from stock option exercises.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We continue to see variability in customer traffic and channel mix. Although workplace attendance has increased in some markets, customers continue to value the convenience of digital ordering and delivery, which shifts sales across our channels. Our Native Delivery, Outpost and Catering, and Marketplace Channels generally carry higher costs, including third-party fees, refunds, and promotional activity. A continued shift in sales mix toward these channels could pressure margins, although we expect margins on these channels to improve over time as we achieve greater scale.