Q2 2026 Sweetgreen Inc Earnings Call Transcript
Key Points
- Sequential improvement in comparable transaction trends, with flat transaction comps in June.
- Wraps drove a couple hundred basis points of comparable sales uplift and approximately 500 basis points improvement in transactions, with high frequency and retention rates.
- New York and Seattle markets returned to positive transaction comps in Q2 due to improved leadership and execution.
- Throughput improvements at high-volume restaurants, with entrees prepared per hour rising from the low 50s to low 60s in June.
- SG Rewards program enhancements, including new redemption options, are resonating with members and driving engagement.
- Comparable restaurant sales declined 6.2% in Q2, with a 2% decline in transactions and a 4.2% decline in product mix.
- Cyclospora outbreak negatively impacted July comparable sales by about 600 basis points, disrupting momentum.
- Restaurant level profit margin fell to 13.1% from 18.9% year-over-year, due to higher food, labor, and other operating costs.
- Adjusted EBITDA was a loss of $0.2 million, down from a profit of $6.4 million in the prior year.
- Full year guidance was lowered, with comparable sales expected to decline 8% to 7% and adjusted EBITDA loss of $27 million to $23 million.
Ladies and gentlemen, thank you for joining us and welcome to the SweetGreen Inc. Second Quarter 2026 Earnings Call.
After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Anthony Wiginton, VP of Finance and Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. Speaking on today's call will be Jonathan Neiman, co-founder and Chief Executive Officer, as well as Jamie McConnell, Chief Financial Officer. Both will be available for questions during the Q&A session following the prepared remarks.
Today's call is being webcast live and recorded for replay.
The earnings release is available on the Investor Relations section of Sweetgreen's website at investor.sweetgreen.com.
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