Sweetgreen, Inc. (SG): BCG Matrix [Dec-2025 Updated]

You're looking at Sweetgreen, Inc.'s business right now, and honestly, the picture is a classic tug-of-war: high-growth bets clashing with a slowing core. As of late 2025, we see aggressive expansion, targeting 37 net new openings, driving revenue toward the $688 million guidance, yet the core same-store sales are projected to drop by as much as (8.5)%. Mapping this onto the BCG Matrix reveals where the capital is being poured-the Stars and Question Marks-and where the pressure is mounting, particularly with the $(13) million Adjusted EBITDA loss looming. Let's break down exactly which parts of the business are funding the future and which are draining resources right now.

Background of Sweetgreen, Inc. (SG)

You're looking at Sweetgreen, Inc. (SG), which started back in 2007 as a mission-driven restaurant and lifestyle brand focused on serving healthy food at scale. Honestly, the core concept is simple: they aim to be as ubiquitous as traditional fast food but with a commitment to quality ingredients, emphasizing plant-forward, seasonal, and local sourcing. As of late 2025, the company is still navigating a tough macro environment, but its focus remains on innovation and disciplined expansion.

Let's look at the scale. By the end of 2024, Sweetgreen, Inc. operated 246 restaurants across 22 states and Washington, D.C.. For the trailing twelve months ending September 28, 2025, the total revenue hit about $685.18 million, which was a modest increase of 2.43% year-over-year. However, the most recent quarterly report for Q3 2025 showed a slight dip, with total revenue at $172.4 million, down 0.6% compared to the same period last year.

The growth story right now is complicated by consumer spending, as Same-Store Sales Change for that third quarter fell to (9.5)%. Still, the digital side is a bright spot; Total Digital Revenue as a percentage of total revenue climbed to 61.8% in Q3 2025. Management is pushing hard on operational improvements, especially through technology like the Infinite Kitchen units, which are central to their strategy.

For the full fiscal year 2025, Sweetgreen, Inc. is projecting revenue to land between $682 million and $688 million, alongside plans for 37 Net New Restaurant Openings, with 18 of those featuring the advanced Infinite Kitchen technology. This push for efficiency is critical because the Restaurant-Level Profit Margin in Q3 2025 was 13.1%, a noticeable drop from 20.1% the year prior, largely due to ingredient and packaging cost pressures. The company also made a strategic move by selling Spyce and partnering with Wonder to evolve that Infinite Kitchen strategy further.

Sweetgreen, Inc. (SG) - BCG Matrix: Stars

You're looking at the units and technologies that are currently driving Sweetgreen, Inc.'s growth trajectory, which, in the BCG framework, are the Stars. These are the areas with high market share potential in a growing segment-in this case, tech-enabled, high-throughput restaurants-but they still demand significant investment to maintain that lead.

The company's aggressive physical expansion plan for 2025 is a key indicator of this Star status. Sweetgreen, Inc. updated its guidance to target 37 Net New Restaurant Openings for the fiscal year 2025. This expansion is directly tied to the overall financial outlook, with the company projecting full-year revenue in the range of $682 million to $688 million. To be fair, this is a revision from an earlier projection of at least $740 million to $760 million in revenue, showing the near-term pressure on the overall portfolio, but the new openings are still the engine for future growth.

The primary driver for these new units, and the reason they are considered Stars, is the Infinite Kitchen (IK) technology. This automation is where the high-growth market share capture is happening, promising superior unit economics that will eventually transition these concepts into Cash Cows when the market growth rate slows.

Here's a look at the unit economics powering the Star segment:

The investment in IK is massive, but the potential payoff is clear. For instance, one location in Hingham, Massachusetts, hit a 30% restaurant-level margin in its first month, which is a 400-basis-point improvement over the original prototype. If this technology scales, it secures market leadership. You can see the commitment in the development plan:

• 18 of the 37 planned net new restaurants for 2025 are slated to feature the Infinite Kitchen technology.
• The technology is projected to deliver an 800-basis-point margin advantage over traditional sites, broken down as 700 basis points from labor savings and 100 basis points from improved Cost of Goods Sold (COGS).
• The first IK location achieved a 31.1% restaurant-level margin, significantly higher than the company's overall targeted margin of 14.5% to 15% for fiscal year 2025.

This focus on high-growth, high-share technology is also fueling geographic expansion. Sweetgreen, Inc. is actively moving into new, high-growth territories to capture early market share. This includes the planned entry into markets like Sacramento, Phoenix, and Cincinnati. You can see the immediate impact of this strategy, as the brand made its highly anticipated debut in Sacramento with two new openings scheduled for December 2025, one in Midtown and another at Fair Oaks + Howe. This aggressive placement in new cities, supported by superior unit economics from the IK rollout, defines these business units as Stars. Finance: draft 13-week cash view by Friday.

Sweetgreen, Inc. (SG) - BCG Matrix: Cash Cows

Cash Cows for Sweetgreen, Inc. (SG) are represented by the established, high-volume traditional locations operating within mature urban markets. These units possess a high market share in a segment where growth prospects are currently constrained, evidenced by the (9.5)% Same-Store Sales Change reported in the third quarter of fiscal year 2025.

The core menu of signature salads and bowls continues to command a brand premium, supporting a high Average Unit Volume (AUV) reported at $2.8 million for the third quarter of fiscal year 2025.

The profitability generated by these mature assets is crucial for funding the broader enterprise. The overall restaurant-level profit margin is projected to be in the range of 14.5% to 15% for the full fiscal year 2025, which is intended to support corporate overhead and expansion efforts, such as the planned 37 Net New Restaurant Openings for the year.

Owned digital channels provide a highly predictable revenue stream. For the third quarter of fiscal year 2025, these channels, encompassing the app and web, accounted for 35.3% of total revenue, an increase from 29.2% in the prior year period.

You can see a comparison of key metrics below:

The focus for these Cash Cow units is maintaining operational efficiency to maximize cash extraction, rather than aggressive promotion. Investments here are geared toward infrastructure improvements that enhance throughput and lower operating costs.

Key operational metrics supporting the Cash Cow thesis include:

• Total Digital Revenue Percentage for Q3 2025 was 61.8%.
• The company operated over 266 locations as of the third quarter of 2025.
• Restaurant-Level Profit in Q3 2025 was $22.5 million.
• The actual Restaurant-Level Profit Margin in Q3 2025 was 13.1%.

The strategy for these established assets involves milking the gains passively while selectively investing in infrastructure that improves the margin, such as the Infinite Kitchen technology, with 18 new units planned to feature it in fiscal year 2025.

Sweetgreen, Inc. (SG) - BCG Matrix: Dogs

You're looking at the part of the Sweetgreen, Inc. (SG) portfolio that needs the most scrutiny right now. These are the units operating in markets or with formats that just aren't pulling their weight in terms of growth or market share. The overall picture for the comparable base is tough, evidenced by the fiscal year 2025 guidance projecting a Same-Store Sales (SSS) Change decline between (8.5)% to (7.7)%. This follows a Q3 2025 SSS Change of (9.5)% and a Q2 2025 SSS Change of (7.6)%. The Average Unit Volume (AUV) dipped to $2.8 million in Q2 2025 from $2.9 million the prior year period, showing the pressure on existing locations.

The decision to prune the portfolio is clear from recent actions. In Q2 2025, Sweetgreen, Inc. took a $5.3 million impairment charge directly related to the closure of 2 restaurants and the decision to keep 3 other restaurants operating under review. Specifically, the two closed locations in New York City-Bleecker and Astor Place-were identified as older, smaller footprint locations. This move signals a necessary step to stop tying up capital in units that aren't positioned for future success.

The physical layout and operational model of older units contribute significantly to their Dog status. Traditional, labor-intensive makelines are struggling with high employee turnover and inherently lower throughput when compared to the newer, automated formats. Here's a quick comparison of the implied performance gap:

Furthermore, the brand is finding that not all geographic areas are equally receptive or scalable. Management specifically cited challenges in established core markets like Los Angeles and D.C., with D.C.'s softness linked to older, smaller locations. Of the 2024 class of new restaurants, 40% was placed in legacy markets, suggesting that even recent additions in established areas are not guaranteed to outperform. The overall AUV decline to $2.8 million in Q2 2025 reflects this pressure across the existing fleet, which includes these lower-performing, legacy-market units.

These Dogs represent cash traps where capital is stuck without adequate returns. The focus is on minimizing exposure through strategic divestiture and redirection of resources toward formats that show higher potential, such as the 20 new restaurants planned with the Infinite Kitchen technology for fiscal year 2025. The current reality is that the fleet average Restaurant-Level Profit Margin fell to 18.9% in Q2 2025, down from 22.5% the prior year period, showing that the overall unit economics are being dragged down by these underperformers.

• Fiscal Year 2025 Projected SSS Change: (8.5)% to (7.7)% decline.
• Q2 2025 Impairment Charge: $5.3 million.
• Q2 2025 Restaurant Closures: 2 locations.
• Q2 2025 AUV: $2.8 million.
• Q2 2025 Restaurant-Level Profit Margin: 18.9%.
• Infinite Kitchen Throughput Increase: 50% over traditional.

Sweetgreen, Inc. (SG) - BCG Matrix: Question Marks

These are the business segments or initiatives within Sweetgreen, Inc. (SG) that operate in high-growth areas but currently hold a low relative market share, thus consuming significant cash while their returns are uncertain.

The aggressive rollout of the Infinite Kitchen technology exemplifies a Question Mark strategy, requiring substantial upfront capital to secure future market position.

• The plan for fiscal year 2025 included 18 new restaurant openings featuring the Infinite Kitchen technology.
• This deployment is part of a broader goal to have half of the total development pipeline, or 40 total locations, feature the Infinite Kitchen by the end of 2025, aiming for a total of 33 such units.
• The Infinite Kitchen is designed for high throughput, capable of fulfilling roughly 500 orders per hour.

New menu innovations represent high-growth attempts to boost customer traffic and perceived value, though their long-term revenue contribution remains unproven.

• Sweetgreen, Inc. is reportedly giving up on process-intensive products like its Ripple Fries.
• New menu items launched in January 2025 included the Spicy Green Goddess bowl (with 24g of Protein) and the Blackened Chicken + Ranch bowl (with 35g of Protein).
• The company increased some protein portions by 25% to lift perceived value.

The new SG Rewards loyalty program is a high-growth effort aimed at increasing customer frequency, but the transition caused short-term negative impacts on comparable sales.

• The points-based SG Rewards program replaced the tiered Sweetpass in early April 2025.
• In the early weeks, the company was acquiring about 20,000 new loyalty members a week.
• The transition of the loyalty program contributed to the (7.6)% negative Same-Store Sales Change reported for the second quarter of fiscal year 2025.

The company's overall financial performance for 2025 reflects this high investment phase, resulting in a projected Adjusted EBITDA loss, which is characteristic of a Question Mark consuming cash.

The projected full-year Adjusted EBITDA loss is estimated to be between $(13) million to $(10) million, illustrating the current cash consumption required to fund growth initiatives like the Infinite Kitchen rollout.