Sweetgreen's menu emphasizes fresh, health-conscious ingredients, offering both signature salads and bowls, as well as customizable options from over 40 daily-prepared components. Seasonal offerings highlight local produce, introducing unique flavors and variety throughout the year. For instance, in autumn 2024, Sweetgreen introduced the Autumn Harvest Bowl, featuring air-fried Maple Glazed Brussels Sprouts, and the Maple Glazed Brussels + Chicken protein plate.

Sweetgreen's "Food Ethos" is grounded in the belief that food choices impact health, communities, and the environment. The approach emphasizes plant-forward, seasonal dishes prepared fresh daily, with a focus on organic, regenerative, and locally sourced ingredients. Strict standards are in place for animal welfare and sustainable seafood, while the menu remains free from processed preservatives, artificial flavors, and refined sugars. Sweetgreen works with over 200 domestic partners - farmers, bakers, and other suppliers - creating an end-to-end supply chain that supports quality ingredients and a commitment to sustainability to support its locations.

Store map as of 06/07/23

Its technology platform offers a five-channel ordering experience for convenience and flexibility. Customers can pick up orders via the app, enjoy wider-range delivery through the Native Delivery Channel, and access exclusive rewards. With over 821 Outpost locations, group orders are easy and affordable for workplaces. Digital channels, accounting for 59% of 2023 revenue, with 36% from Owned Digital Channels alone, drive higher order values and loyalty, while Marketplace Channel users are often converted to Sweetgreen’s app.

In 2021, it acquired Spyce, a kitchen automation company, and transformed its technology into the “Infinite Kitchen.” By 2023, Infinite Kitchen units were launched in two Sweetgreen restaurants, integrating automation to improve speed, accuracy, and freshness in meal prep. Sweetgreen plans to expand these kitchens to more locations.

“Leading Industry with Automation”

Sweetgreen competes with major fast-casual and fast-food brands like Chipotle, CAVA, McDonald's, and Panera Bread, alongside local restaurants and health-focused chains. Expansion into new markets and digital channels brings added competition from delivery kitchens, food aggregators, and grocery stores focused on fresh, organic offerings. Many competitors benefit from larger resources and established brand presence, while platforms like DoorDash and Uber Eats intensify competition by controlling customer data that can redirect orders to rival establishments.

In Q2 2023, it launched its Sweetpass and Sweetpass+ loyalty programs. Sweetpass offers rewards, birthday treats, and menu exclusives for all digital account holders, while Sweetpass+ provides added perks like a daily $3 discount for $10/month. Both programs allow customers to earn rewards through challenges tied to specific purchases. Revenue from Sweetpass+ subscriptions is recognized monthly, as benefits expire at the end of each term.

In Q4 2023, Sweetgreen’s revenue climbed 29% to $153 million, up from $118.6 million in the prior year, driven by same-store sales growth of 6% and contributions from 45 new restaurant openings since Q4 2022. The average unit volume (AUV) remained steady at $2.9 million. Digital sales made up 58% of total revenue, though Owned Digital Revenue slipped to 34% from 40% the previous year. Sweetgreen improved its loss from operations to -$29.3 million (19% margin), compared to -$47.7 million (40% margin) in Q4 2022. Restaurant-level profit rose to $24.8 million, with a margin of 16%, driven by menu price increases, labor optimization, and supply chain efficiencies. Adjusted EBITDA improved significantly, shrinking losses to -$1.8 million, reflecting increased restaurant-level profitability and reduced administrative costs.

In fiscal year 2023, Sweetgreen’s revenue grew by 24% to $584 million, up from $470.1 million in 2022, with same-store sales increasing by 4%. Revenue growth was partially offset by restaurant closures in 2023 and higher discounts from the Sweetpass+ loyalty program launch. AUV held steady at $2.9 million. Digital channels contributed 59% of total revenue, though the Owned Digital Revenue Percentage decreased to 36% from 41%. Operating losses improved significantly to -$122.3 million (21% margin), down from -$193.3 million (41%) the previous year. Restaurant-level profit rose to $101.9 million, with a 17% margin. Net losses narrowed to -$113.4 million, while adjusted EBITDA improved to a near break-even of -$2.8 million. Sweetgreen opened 35 new restaurants, one fewer than last year.

For fiscal year 2024, Sweetgreen expects 23-27 new restaurant openings, with revenue projected between $655 million and $670 million. Same-store sales are anticipated to increase by 3-5%, with a restaurant-level profit margin of 18%-19.5%. Adjusted EBITDA is forecasted to range from $8 million to $15 million. In Q1 2024, Sweetgreen aims for 5-6 new openings and revenue between $150 million and $154 million, with same-store sales growth of around 3%. The restaurant-level profit margin is expected to be 16%-17%, and adjusted EBITDA is projected between -$4 million and -$2 million.

Sweetgreen is well-positioned in its market, led by a management team with a clear vision for the future. The company’s focus on product quality and strong financials establishes it as a solid player, despite facing intense competition. Shifts in consumer habits, combined with Sweetgreen's social media presence, play a critical role in attracting a younger audience willing to invest in healthier food options.