Sweetgreen Reports Mixed Q1 2026 Results Amid Transformation Plan…

Event summary

Q1 2026 revenue decreased 2.9% YoY to $161.5M, with same-store sales down 12.8%.
Net income surged to $125.8M due to a $160.6M gain from the Spyce sale, offsetting a $34.3M operating loss.
Digital revenue share rose to 67.2%, with owned digital channels at 38.9%.
Restaurant-level profit margin dropped to 10.0% from 17.9% YoY.
Sweetgreen opened 4 new restaurants, down from 5 in the prior year.

The big picture

Sweetgreen's Q1 2026 results reflect the challenges of its Sweet Growth Transformation Plan, as the company balances menu innovation with operational efficiencies. The digital shift and strategic menu expansions aim to reposition the brand in a competitive fast-casual market, but profitability remains a key hurdle. The Spyce sale provided a one-time boost, but long-term growth will depend on executing its transformation strategy effectively.

What we're watching

Menu Innovation: Whether the nationwide launch of Wraps can drive sustained guest acquisition and retention.
Operational Execution: The pace at which Sweetgreen can improve restaurant-level profitability amid rising costs.
Digital Strategy: How the shift to owned digital channels will impact customer engagement and revenue.