Sweetgreen Reports Mixed Q2 2026 Results Amid Consumer Demand…

Event summary

Total revenue increased by 3.8% year-over-year to $192.7 million, driven by new restaurant openings.
Same-store sales declined by 6.2%, reflecting a 2.0% decrease in traffic and a 4.2% decrease in product mix.
Restaurant-level profit margin decreased by 580 basis points to 13.1% due to higher ingredient costs and promotional activity.
Adjusted EBITDA turned negative at $(0.2) million, compared to $6.4 million in the prior year period.
Sweetgreen opened only 2 new restaurants in Q2 2026, down from 9 in the previous year.

The big picture

Sweetgreen's Q2 2026 results highlight the challenges faced by the restaurant industry amid shifting consumer preferences and food safety concerns. The company's focus on digital transformation and operational efficiency is critical as it navigates reduced consumer demand for fresh prepared foods. Sweetgreen's ability to rebuild restaurant-level profitability will be a key factor in its long-term growth strategy.

What we're watching

Consumer Demand Trends: How the multistate outbreak of cyclosporiasis will impact Sweetgreen's sales recovery and consumer confidence.
Operational Efficiency: Whether Sweetgreen can sustain improvements in restaurant execution and guest experience to drive traffic growth.
Digital Strategy: The pace at which Sweetgreen's digital revenue percentage continues to grow, particularly through its loyalty program.