Sweetgreen, Inc.

Previous report

Food safety and foodborne illness concerns could have an adverse effect on our business.

Previous report

Although we maintain rigorous food safety procedures, which includes employee training, we cannot guarantee that our procedures and training will prevent all food safety issues, including illnesses attributable to, among other things, Salmonella, Cyclospora, E. coli, or hepatitis A, and our employees may fail to identify or report unsafe or unsanitary conditions in accordance with our procedures. The ingredients we handle (such as leafy greens and raw chicken) are among the highest risk foods when it comes to food safety and foodborne illness. We freshly prepare many items in-restaurant, which may put us at even greater risk for foodborne illness and food contamination outbreaks than some competitors that use more processed foods or commissaries. Such risks also increase when our food is handled outside our control, including orders through Pick-Up, Native Delivery, Outpost and Catering, and Marketplace Channels, particularly if food is not delivered or consumed within the recommended time periods. Our protocols and procedures, and any public statements we make, to respond to any such incident may not be sufficient to protect customers from physical harm and to protect our business and reputation. We may need to temporarily close restaurants, remove items from the menu, or take other corrective actions as a result of any such incident, which could harm our business and reputation.

Previous report

We rely on third-party distributors and suppliers, which may make it difficult to monitor food safety compliance and which increases the risk that foodborne illness would affect multiple locations rather than a single restaurant. Our distributors and suppliers may provide us with substitute products, which may not be of equal quality and may complicate traceability in the event of a food contamination incident. We may not have sufficient contractual recourse against such third parties, and the insurance carried by us or by our distributors and suppliers may be insufficient to cover related costs.

Previous report

Highly publicized incidents, whether or not accurately attributed to us, and incidents that occur at our suppliers or at other restaurant brands can be rapidly amplified by social and digital media and may negatively affect guest perceptions of our brand and the industry more broadly, and could adversely affect our restaurant revenue on a nationwide basis. For example, in July 2026, U.S. authorities identified a multistate outbreak of cyclosporiasis. No ingredients in the Company’s supply chain have been identified as part of the cyclosporiasis outbreak investigation, but reduced consumer demand associated with the ongoing incident has and may continue to negatively impact our customer traffic and sales. Additionally, in August 2026, we were notified of a supplier initiated recall of jalapeños associated with a multistate outbreak of Salmonella, which were received by certain of our restaurants. We removed 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. Any food safety incident or product recall, whether actual or perceived, could result in negative publicity, reduced traffic, supply disruption, increased costs, litigation, and, among other things, an adverse effect on our business, financial condition, and results of operations.