Sweetgreen (SG) just closed out FY 2025 with Q4 revenue of US$155.2 million and a basic EPS loss of US$0.42, while trailing 12 month revenue came in at US$679.5 million with a TTM basic EPS loss of US$1.14. Over the year, the company has seen quarterly revenue shift from US$166.3 million in Q1 and US$185.6 million in Q2 to US$172.4 million in Q3 and US$155.2 million in Q4, with basic EPS losses ranging from US$0.21 to US$0.42 per quarter. With TTM net losses still substantial and same restaurant sales moving from growth in 2024 to declines through 2025, the focus for investors now is firmly on whether Sweetgreen can tighten unit economics and protect margins as it adds new restaurants.

See our full analysis for Sweetgreen.

With the latest numbers on the table, the next step is to see how this earnings print compares with the main narratives around Sweetgreen's growth potential, path to profitability, and the risks investors are watching most closely.

Same store sales slide from +6% to mid single digit declines

• Same restaurant sales went from 6% growth in Q4 2024 to declines of 3.1%, 7.6% and 9.5% across the first three quarters of 2025, even as the store count rose from 246 to 266 locations.
• Bulls argue that Infinite Kitchens and new formats can lift unit economics. The shift from 6% growth to a 9.5% decline tests that view, because:
  • Rising total restaurants through 2025 shows expansion continuing while like for like sales turn negative, which can dilute average unit volumes if traffic does not keep up.
  • The bullish focus on better margins per store sits against FY 2025 trailing 12 month net losses of US$134.1 million, so the financial impact of newer formats is not yet visible at the consolidated level.

Bulls point to automation and new formats as future growth drivers, but these results show how much has to go right for that thesis to play out. 🐂 Sweetgreen Bull Case

Losses widen to US$49.7 million in Q4

• Net loss in Q4 2025 was US$49.7 million versus US$29.0 million in Q4 2024, and on a trailing 12 month basis losses were US$134.1 million with basic EPS at a loss of US$1.14.
• Bears focus on rising costs and execution issues, and the numbers give that argument some backing, because:
  • Across 2025, quarterly net losses moved from US$25.0 million in Q1 to US$23.2 million in Q2, US$36.1 million in Q3 and US$49.7 million in Q4, so the company is not yet showing a clear path toward break even at the income statement level.
  • Forecasts indicating the company remains unprofitable over the next three years, combined with a cash runway of under one year, line up with the cautious view that ongoing investment and higher costs could keep pressure on margins.

If you are weighing whether these losses are temporary growing pains or something more structural, it helps to see how skeptics frame the downside. 🐻 Sweetgreen Bear Case

P/S around 1x with slower forecast growth

• With trailing 12 month revenue of US$679.5 million and a P/S of 1.0x that sits below peers at 1.3x and the US hospitality average at 1.7x, the market is pricing Sweetgreen at a discount while revenue is forecast to grow at 7.2% a year versus 10.3% for the broader US market.
• Consensus narrative highlights reduced losses over five years and a lower P/S multiple, but the current print adds some tension to that view, because:
  • The five year loss reduction trend of roughly 9.7% a year contrasts with the latest trailing 12 month net loss of US$134.1 million, which has not yet reflected any move toward the industry profit margin of 8.2% that analysts often reference.
  • The current share price of US$5.55 sits below the single allowed analyst price target of US$7.42, so anyone relying on that target has to reconcile the discount P/S and slower forecast growth with the ongoing lack of profitability.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Sweetgreen on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this all feels mixed, that is exactly why looking at the underlying data yourself matters. By reviewing the information directly, you can move quickly and shape your own view based on 2 important warning signs.

Explore Alternatives

Sweetgreen is still dealing with same restaurant sales declines, widening losses of up to US$49.7 million per quarter, and no clear route to profitability yet.

If you are uneasy about ongoing losses and want ideas with stronger fundamentals, take a look at our 77 resilient stocks with low risk scores that prioritises stability and fewer red flags right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.