Sweetgreen (SG) closed out FY 2025 with fourth quarter revenue of US$155.2 million and a basic EPS loss of US$0.42, with trailing twelve month revenue at US$679.5 million and a TTM basic EPS loss of US$1.14 that keeps the story firmly in loss-making territory. Over recent quarters, revenue has moved between US$166.3 million and US$185.6 million, while quarterly basic EPS losses have ranged from US$0.20 to US$0.42. Taken together, this provides a clear picture of a business still investing heavily for scale rather than near term profitability. Margins remain compressed, so the key question for investors now is how quickly those losses can narrow as the restaurant base and sales density evolve.

See our full analysis for Sweetgreen.

With the headline numbers on the table, the next step is to see how this earnings profile stacks up against the main narratives around Sweetgreen, highlighting where the story is reinforced and where expectations may need a reset.

Same Restaurant Sales Slide To 7.9% Decline

• On a trailing 12 month basis, same restaurant sales fell 7.9% while the store count increased to 281 locations, so more restaurants are spreading over a softer traffic and ticket base.
• Bears argue that weakening demand for premium fast casual is a key risk, and the recent same restaurant sales declines of 3.1%, 7.6%, 9.5% and the 7.9% TTM figure give that view some support, yet menu launches and loyalty changes are still cited as ways to rebuild traffic and check size.
  • The bearish narrative highlights pressure in urban markets and price sensitivity, which fits with the step down from positive 5.6% same restaurant sales in 2024 Q3 to mid single digit and high single digit declines in 2025.
  • At the same time, bears worry that aggressive expansion could add more units in markets where underlying demand is already soft, which the move from 251 to 281 restaurants over the year makes important to watch.

On this backdrop, skeptics point to recent traffic softness and expansion plans as reasons to question how quickly Sweetgreen can reach its long term restaurant target, and why tighter unit economics matter so much for the thesis today. 🐻 Sweetgreen Bear Case

TTM Net Loss Of US$134.1 Million

• The trailing 12 month net loss widened to US$134.1 million with TTM basic EPS at a loss of US$1.14, compared with a TTM net loss of US$90.4 million at 2024 Q4, so the company is still firmly loss making even as it trims losses over a longer five year window.
• Consensus narrative leans on automation and store optimization to eventually improve margins, but the recent step up in losses and quarterly EPS swings between US$0.20 and US$0.42 of loss show that the margin path is still bumpy.
  • Analysts point to Infinite Kitchen formats and process standardization as margin drivers, yet FY 2025 quarterly net losses of US$23.2 million to US$49.7 million show restaurant level and overhead costs are still weighing on the income statement.
  • Management ambitions around smaller, more efficient formats and relocations sit against industry wide cost pressures, with wage and occupancy costs cited as rising, which helps explain why losses remain substantial despite revenue of US$679.5 million over the TTM period.

P/S Of 1.2x With Less Than One Year Cash Runway

• The stock trades on a P/S of 1.2x, below both the peer average of 1.5x and US Hospitality at 1.7x, while the business has less than one year of cash runway and is still not expected to reach profitability over the next three years.
• Bulls see automation and a healthier food focus as drivers that could make that lower P/S multiple appealing over time, yet the limited cash runway and ongoing losses mean any path to value creation runs through tangible progress on margins and unit level returns.
  • Bullish arguments around Infinite Kitchens and new store formats improving labor efficiency sit side by side with data showing trailing losses of more than US$130 million and no profitability forecast within three years.
  • The bullish view that Sweetgreen can support higher long term growth than the 7.3% revenue growth seen over the last year also has to contend with slower growth than the broader US market at 11.4% and the need to fund that growth with a currently tight liquidity position.

For anyone weighing whether that lower 1.2x P/S is a genuine opportunity or a reflection of these cash and profitability pressures, it helps to compare the full bullish case against the latest reported numbers. 🐂 Sweetgreen Bull Case

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 feels like a mixed picture, treat it as your cue to check the numbers directly, compare scenarios, and decide where you stand before the next update. To weigh those concerns against your own thesis, start by reviewing the 2 important warning signs.

See What Else Is Out There

Sweetgreen is contending with falling same restaurant sales, sizeable TTM net losses of US$134.1 million, a compressed 1.2x P/S, and less than one year of cash runway.

If those pressures on profitability and liquidity make you cautious, it is worth scanning companies with stronger cushions by checking the solid balance sheet and fundamentals stocks screener (44 results).

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.