Sweetgreen Q2 Earnings Call Highlights

Sweetgreen NYSE: SG reported second-quarter 2026 revenue of $192.7 million, up approximately 4% from a year earlier, while comparable restaurant sales declined 6.2%.

The company said transaction trends improved sequentially during the quarter, reaching roughly flat comparable transactions in June, but momentum was disrupted in mid-July by consumer concerns surrounding a Cyclospora outbreak attributed to iceberg lettuce.

Chief Executive Officer Jonathan Neman said Sweetgreen does not use iceberg lettuce and has received no indication from suppliers or public health authorities that it is connected to the outbreak.

Still, the company incorporated the expected impact of the headlines and a range of recovery scenarios into its revised full-year outlook.

Sweetgreen also said it proactively removed jalapenos from an affected supplier following a separate voluntary recall announced the day before the call.

Jalapenos are used only in two of its 15 dressings and represent a small part of sales, Neman said.

The company has not included any potential effect from that matter in its outlook because it was too early to estimate.

The company’s comparable transaction trend improved from an 11.2% decline in the first quarter to declines of about 3% in April and May, before reaching approximately flat in June.

McConnell said wraps and early operational improvements supported that progress.

Restaurant-level profit was $25.2 million, or 13.1% of revenue, compared with an 18.9% margin a year earlier.

Food, beverage and packaging costs rose about 210 basis points as a percentage of revenue, primarily due to higher ingredient usage, investments in portions and promotions.

Labor and related expenses increased about 170 basis points, largely from sales deleverage and wage inflation.

Adjusted EBITDA was a loss of $200,000, compared with adjusted EBITDA of $6.4 million in the prior-year quarter.

Management highlighted the national launch of wraps as a major element of its sales strategy.

Neman said wraps maintained approximately 20% incidenc...