Sweetgreen (SG) Q4 & FY 2024 Earnings: Growth Amid Expansion & Innovation
- Hardik Shah
- Feb 27
- 2 min read
TL;DR
Financial Performance: Revenue grew 16% YoY to $676.8M in FY 2024, with restaurant-level margins expanding by over 200 basis points.
Market & Operational Trends: Expansion of Infinite Kitchens, menu innovation, and a new loyalty program to enhance customer engagement.
Future Growth Drivers: Plans for 40 new restaurant openings in 2025, further automation integration, and increased marketing investments.
Financial Results
Sweetgreen (NYSE: SG) is a mission-driven restaurant brand focused on serving healthy, fresh, and tech-enabled fast food. The company’s 246 locations leverage digital ordering, automation, and sustainable sourcing to differentiate itself in the fast-casual space.
Sweetgreen Earnings - Q4 2024 Highlights
Revenue: $160.9M (+5% YoY)
Same-store sales: +4% (vs. +6% in Q4 2023)
Net loss: $(29.0)M (vs. $(27.4)M in Q4 2023)
Adjusted EBITDA: $(0.6)M (vs. $(1.8)M in Q4 2023)
Restaurant-level profit margin: 17% (vs. 16% in Q4 2023)
New restaurant openings: 10 (vs. 1 in Q4 2023)
FY 2024 Key Financial Metrics
Total Revenue: $676.8M (+16% YoY)
Same-store sales: +6% (vs. +4% in FY 2023)
Restaurant-Level Profit Margin: 20% (+3pp YoY)
Adjusted EBITDA: $18.7M (first full year of profitability)
Management Commentary:"Our 2024 results exceeded our initial expectations, thanks to the strength of our menu innovation, technology, and overall guest experience," said Jonathan Neman, Co-Founder & CEO.
"This marks our first full year of Adjusted EBITDA profitability, providing a solid foundation to grow and expand in the years to come," added CFO Mitch Reback.
2025 Outlook
Revenue: $760M–$780M
Same-store sales growth: 1%–3%
Restaurant-Level Profit Margin: 19.8%–20.5%
Adjusted EBITDA: $32M–$38M
New restaurant openings: 40, with 20 featuring Infinite Kitchen automation
Operational Performance
Industry & Market Trends
Increased digital engagement: Digital sales accounted for 56% of total revenue.
Macroeconomic challenges: Inflationary pressures and extreme weather disruptions in early 2025 impacted Q1 projections.
Expanding customer base: Double-digit comps growth in Midwest, Texas, and the Southeast.
Key Business Milestones
Tech Innovation: Expansion of Infinite Kitchen, which reduces labor costs by 7% and improves COGS by 1%.
Geographic Growth: Entry into Seattle, Columbus, and Charlotte in 2024.
New Product Launches: Introduction of grass-fed steak and Ripple Fries.
Challenges & Risks
Weather-related disruptions: Los Angeles wildfires impacted ~15% of revenue in early 2025.
Labor Costs: Continuous focus on AI-driven workforce management systems to optimize scheduling and efficiency.
Competitive Pressures: Expansion of rivals in the healthy fast-casual sector.
Strategic Initiatives
Menu Innovation: Increased cadence of seasonal menu items, Michelin-star collaborations, and Ripple Fries launch in March 2025.
Loyalty Program Revamp: SG Rewards launching in April 2025, offering 10 points per dollar spent, with exclusive offers.
AI & Automation: Deployment of AI-powered scheduling tools to optimize labor efficiency.
The Bottom Line
Sweetgreen's strong revenue growth and first full year of adjusted EBITDA profitability validate its strategic initiatives. With 40 new restaurant openings, an enhanced loyalty program, and automation investments, 2025 is set to be a pivotal year for scaling its footprint and increasing customer engagement. Despite macroeconomic challenges and weather-related setbacks, the company remains focused on menu innovation, operational excellence, and technology-driven efficiencies to sustain long-term growth.
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