What changed in this filing

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Item 1. Business

2025-02-27 compared with 2024-02-29 · 51 added, 83 removed, 124 unchanged (52% of the section changed)

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This is our Food Ethos, and it is firmly rooted in every aspect of our business.

At Sweetgreen, we only serve Real Food, which for us means:

At Sweetgreen, we focus on Real Food, which for us means:

• Plant-forward

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Our Core Menu

• Our core menu features 13 curated, signature items which are offered year-round in all of our locations, including our latest addition of protein plates.

• In addition to our core menu items, our single most popular item is the “custom” salad or bowl, which can include millions of combinations from 40-plus ingredients prepared fresh in each of our restaurants every day, as well as our made-from-scratch dressings.

• Our core menu features 13 curated, signature items which are offered year-round in all of our locations, including our new steak plate.

• In addition to our core menu items, our single most popular item is the “custom” salad or bowl, which can include millions of combinations from 40-plus ingredients as well as our made-from-scratch dressings.

• We keep our menu fresh by curating a smaller seasonal and limited time offer menu throughout the year.

We believe our seasonal menu rotation, which celebrates the strength of our regional supply

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chain by highlighting fresh local ingredients, increases order frequency by introducing new flavor combinations for our customers to sample.

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Our Supply Chain

We have built a differentiated, end-to-end supply chain that begins with more than 200 domestic food partners, such as farmers and bakers, and culminates in delicious, high-quality food for our customers.

Consistent with our Food Ethos, we prioritize ingredients that are certified organic, regenerative, or locally sourced, and meet strict and humane animal welfare and seafood standards.

We build direct relationships with our farmers and growers and we are proud to showcase them on the walls of every restaurant and spotlight them on our digital platform.

Our national supply chain is organized into regional distribution networks that align retail proximity with cultivation, while also making it easy to leverage existing relationships as we enter new markets in that region.

We have built a differentiated, end-to-end supply chain that culminates in delicious, high-quality food for our customers.

We currently have more than 140 active domestic food partners, such as farmer, bakers, and distributors.

Consistent with our Food Ethos, we seek to prioritize ingredients that are certified organic, regenerative, or locally sourced, and meet high animal welfare and seafood standards.

We build direct relationships with farmers and growers and we are proud to showcase them on the walls of every restaurant and spotlight them on our digital platform.

Our national supply chain is organized into regional distribution networks.

We seek to align retail proximity with cultivation, and to leverage existing relationships as we enter new markets in that region.

Quality Control and Food Safety

At Sweetgreen, we refer to food safety as our “license to operate.” For Sweetgreen, food safety starts with our food supply.

At Sweetgreen, we refer to food safety as our “license to operate,” and that starts with our food supply.

All of our suppliers provide appropriate food safety certification and third-party audits as part of the onboarding process.

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Our Real Estate

We opened 35 Net New Restaurants in fiscal year 2023.

We op ened 25 Net New Restaurants in fiscal year 2024.

As we continue to expand, we are confident that our compelling restaurant-level economics will continue to work across geographies and market types.

We utilize a rigorous, data-driven real estate selection process to identify new restaurant sites with both high anticipated foot traffic and proximity to workplaces and residences that support our multi-channel approach.

We continue to test new restaurant design concepts to bring Sweetgreen into a wider variety of trade areas and markets.

We have thoughtfully designed all of our restaurants to both reflect the culture and feel of our local communities and to support our multiple digital channels including exterior pick-up windows and mobile pickup lanes for digital orders.

We recently launched our second automated restaurant pilot with the opening of our Huntington Beach location.

We continue to learn from these pilots and are incorporating our findings into more of our future restaurant openings.

We continue to test new restaurant design concepts to bring Sweetgreen into a wider variety of trade areas and markets, including but not limited to a mobile pickup lane for digital orders.

We have thoughtfully designed our restaurants to both reflect the culture and feel of our local communities and to support our multiple digital channels.

Our Technology

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Customers place their order through our mobile app or website and pick it up from their chosen Sweetgreen location at the time most convenient for them.

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Native Delivery.

We launched our Native Delivery Channel in January 2020, and believe it offers a superior customer experience to our Marketplace Channel, generally with lower menu item pricing than our Marketplace Channel, greater delivery radii than our Marketplace Channel in many locations, enhanced customization features, access to our seasonal menu items and ingredients, and access to exclusive promotions via Sweetgreen Rewards and Challenges.

customization features, access to our seasonal menu items and ingredients, and access to exclusive promotions via Sweetgreen Rewards and Challenges.

Outpost and Catering.

Our Outpost and Catering Channel enables office workers or building residents to get their custom Sweetgreen order delivered directly to an outpost station at their location during a dedicated time window each day, with lower customer fees than our delivery channels.

Our Outpost and Catering Channel enables office workers or building residents to get their custom Sweetgreen order delive red directly to an outpost station at their location during a dedicated time window each day, typically with lower customer fees than our other delivery channels.

As of the end of fiscal year 2024, we had 823 live Outpost locations.

In addition, our Outpost and Catering Channel includes our catering offerings, which refer to sales to customers made through our catering website for pickup at one of our restaurants or delivery to a customer specified address.

During fiscal year 2022, we began piloting our Catering program with a goal of serving event and group customers in an additional format through which they prefer to order.

In addition, our Outpost and Catering Channel includes our catering offerings, which refer to sales to event and group customers made through our catering website for pickup at one of our restaurants or delivery to a customer specified address.

Bulk orders of salads, warm bowls, sides, and drinks can be ordered for delivery together and are prepared at select locations.

In addition to a strategic focus on our Owned Digital Channels, our In-Store Channel is core to our platform and serves as a critical path to attract new customers via our iconic physical locations.

Digital scan-to-pay was eliminated during fiscal year 2023.

P rior to the elimination of digital scan-to-pay, c ustomers could pay digitally using the “scan-to-pay” feature on our mobile app.

Purchases made in our In-Store Channel via cash or credit card are referred to as “Non-Digital” transactions, and purchases made in our In-Store Channel via digital scan-to-pay, prior to its elimination, were included as part of our Owned Digital Channels.

Purchases made in our In-Store Channel via cash or credit card are referred to as “Non-Digital” transactions, and purchases made in our In-Store Channel via digital scan-to-pay, prior to its elimination in 2023, were included as part of our Owned Digital Channels.

Our Marketplace Channel often serves as an effective means to reach new digital customers who have not used our native mobile app or website before.

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For fiscal year 2024 , 30% of our revenue was from our Owned Digital Channels, as compared to 36% from our Owned Digital Channels in fiscal year 2023.

When including orders placed on our Marketplace Channel, this digital share increases to 59% of our fiscal year 2023 revenue, as compared to 62% of our revenue in fiscal year 2022.

When including orders placed on the Marketplace Channel, 56% of our fiscal year 2024 revenue was derived from digital channels, as compared to 59% of our revenue in fiscal year 2023.

The convenience of our multi-channel approach, combined with our ability to offer personalized content and recommendations, results in a highly engaged cohort of habitual Sweetgreen customers.

Not only are our owned digital users our most frequent customers, but the average order value (which is the dollar value of an order exclusive of taxes and any fees paid by the customer) for orders placed on our Owned Digital Channels is higher than Non-Digital orders placed through our In-Store Channel.

Not only are users of our Owned Digital Channels our most frequent customers, but the average order value (which is the dollar value of an order exclusive of taxes and any fees paid by the customer) for orders placed on our Owned Digital Channels is higher than non-digital orders placed through our In-Store Channel.

Proprietary Technology Powers our Operations at Scale

In addition to our customer-facing digital platform, we have also invested in technology to support our back of house operations and simplify the work of our team members.

In addition to our customer-facing digital platform, we have also invested in technology to support our back of house operations, simplify the work of our team members, and enhance how we hire, train, and schedule team members.

These investments include leveraging systems that manage inventory in our restaurants to ensure freshness, guide prep work, optimize our meal assembly process, and manage our team members’ output to enhance our order fulfillment times.

In 2021, we acquired a kitchen automation technology company, Spyce, and have further developed and deployed Spyce’s kitchen automation technology, which we refer to as the Infinite Kitchen.

We deployed units of the Infinite Kitchen in two of our restaurants during fiscal year 2023, and expect to deploy additional Infinite Kitchen units in new and existing Sweetgreen restaurants.

In 2023, our Infinite Kitchen was named as one of Time’s Best Inventions, which recognizes 200 extraordinary inventions that changed the way we live, work, play, and think about what’s possible.

In 2021, we acquired a kitchen automation technology company, Spyce Food Co.

(“Spyce”), and have further developed and deployed Spyce’s kitchen automation technology, which we refer to as the Infinite Kitchen.

We incorporate our Infinite Kitchen technology into new and existing restaurants based, in large part, upon our evaluation of the potential economic and other benefits for those restaurants.

We deployed units of the Infinite Kitchen in two of our restaurants during fiscal year 2023 and ten of our restaurants during fiscal year 2024.

Of the 10 restaurants that received the Infinite Kitchen technology in fiscal year 2024, three were retrofits and seven were new restaurant openings.

We continue to learn from these deployments and are incorporating our findings into future deployments.

In 2023, our Infinite Kitchen technology was named as one of Time’s Best Inventions, which recognizes 200 extraordinary inventions that changed the way we live, work, play, and think about what’s possible.

Our Marketing Strategy

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By connecting food and culture to amplify our mission, we use a carefully crafted combination of brand, retail, and digital marketing to build awareness, generate sales, and drive brand love.

In 2023, we were named one of Fast Company’s Brands That Matter, which recognized companies and nonprofits that have undeniably impacted business and culture.

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In each of 2023 and 2024, we were named one of Fast Company’s

Brands That Matter, which recognized companies and nonprofits that have undeniably impacted business and culture.

Since inception, we have collaborated with some of the world’s best chefs, athletes, musicians, and thought leaders in our communities to help us amplify the power of healthy food.

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We hire team members who are passionate about our purpose and strive to maintain a friendly, fun, and positive work environment.

We pay competitive wages and believe we offer best-in-class benefits relative to the industry, including medical, dental, and vision insurance for eligible employees and their spouses or domestic partners, paid time off, paid parental leave, and equity incentives for our Head Coaches.

In 2023, Built In included Sweetgreen in their “U.S.

Best Places to Work” list, and Forbes recognized Sweetgreen as one of “America’s Best Midsized Employers.”

We pay competitive wages and believe we offer many best-in-class benefits relative to the industry, including medical, dental, and vision insurance for eligible employees and their spouses or domestic partners, paid time off, paid parental leave, and equity incentives for our Head Coaches.

In each of 2023 and 2024, Built In included Sweetgreen in their “100 Best places to Work in Los Angeles,” and in 2024 Forbes recognized Sweetgreen as one of “America’s Best Employers for Women.”

Our Restaurant Team Structure and the Pathway to Opportunity

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By providing opportunities for advancement, professional development, and ultimately leadership, we have been able to promote high-performing talent, and by extension, scale our Sweetgreen culture.

At Sweetgreen, the best leaders come from within—we develop a talent-rich pipeline by having a clear promotional track for team members to become a Head Coach (our title for a store manager) within as few as three years.

At Sweetgreen, we believe the best leaders come from within, so we deve lop a talent-rich pipeline by having a clear promotional track for team members to become a Head Coach (our title for a store manager) within as few as three years.

During fiscal year 2024, 58% of open restaurant leadership roles were filled with promotions of existing employees.

We also saw our average Head Coach tenure grow from 36 to 40 months.

Commitment to Diversity and Inclusion

We believe that diversity, equity, and inclusion give us a competitive edge.

It allows us to tap into a wider pool of knowledge, skills, and experiences, which in turn enhances our ability to innovate, attract and retain top talent, and improve our team dynamics.

We are committed to representation at all levels and a culture of inclusion where all individuals, regardless of their background, can contribute.

To that end, we provide all employees with cultural competency and unconscious bias training and measure workforce representation quarterly.

In 2023, Newsweek recognized us as one of "America's Best Workplaces for Diversity." Moreover, we are proud to have achieved a 100% score in the Human Rights Campaign's Corporate Equality Index for two consecutive years.

As of December 29, 2024, we had a total of 6,407 employees, 334 of whom worked at our Sweetgreen Support Center and 6,073 of whom worked in our restaurants.

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Our mission to build healthier communities by connecting people to real food extends to positively impacting the lives of our customers, team members, and citizens of the communities we serve.

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During each new restaurant opening, we distribute fresh Sweetgreen meals to local charities such as food pantries and soup kitchens to help alleviate food insecurity in the community.

Additionally, for every meal purchase on opening day, we donate a meal to a local nonprofit impact partner to distribute to someone in need.

Together, through our new restaurant opening meal donation program, we donate up to 100,000 meals annually.

• Fundraising for Local Charities:

Our restaurants are more than just places to eat;

they are community hubs where we make a positive impact.

One way we do this is by hosting fundraisers to support causes that our customers care about, such as parent-teacher associations and youth sports leagues.

For every meal purchase on opening day, we donate a meal to a local nonprofit impact partner to distribute to someone in need.

In 2024, we donated over 68,000 meals through our new restaurant opening program.

• Volunteering as a Team:

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Trademarks and Other Intellectual Property

We protect our intellectual property primarily through a combination of trademarks, domain names, copyrights, and trade secrets.

Since our inception, we have undertaken to strategically and proactively develop our

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trademark portfolio by registering our trademarks and service marks in the United States and various strategic foreign jurisdictions.

Domestically, we registered our core marks (“Sweetgreen,” “SG,” and the Sweetgreen logo) and certain other marks, such as “SG Outpost,” “Sweetgreen Outpost,” and “SweetPass.” Internationally, we currently have registered our core Sweetgreen mark, along with selected other marks, in foreign jurisdictions including Australia, Canada, China, the European Union, Hong Kong, Japan, Mexico, South Korea, and the United Kingdom.

We protect our intellectual property primarily through a combination of trademarks, domain names, copyrights, patents, and trade secrets.

Since our inception, we have undertaken to strategically and proactively develop our trademark portfolio by registering our trademarks and service marks in the United States and various strategic foreign jurisdictions.

Domestically, we registered our core marks (“Sweetgreen,” “SG,” and the Sweetgreen logo) and certain other marks, such as “SG Outpost,” “Sweetgreen Outpost,” and “SweetPass.” Internationally, we currently have registered our core Sweetgreen mark, along with selected other marks, in foreign jurisdictions including Argentina, Australia, Canada, China, the European Union, Hong Kong, Japan, Mexico, South Korea, and the United Kingdom.

Most of our marks are registered in multiple international trademark classes, including for restaurant services and related goods and services.

We are currently pursuing additional trademark and trade dress registrations in the United States and abroad and will continue to pursue additional trademark registrations to the extent we believe they would be beneficial and cost-effective .

Additionally, as a result of the acquisition of Spyce Food Co.

(“Spyce”), we have two issued patents and four patent applications pending in the United States, and one issued patent in the People’s Republic of China.

We i ntend to pursue additional patent protection (including in respect of Spyce’s automation technology) to the extent we believe it would be beneficial and cost-effective.

Additionally, in connection with our Infinite Kitchen technology, we have three issued patents and four patent applications pending in the United States, and one issued patent in the People’s Republic of China.

We i ntend to pursue additional patent protection with respect to the Infinite Kitchen technology to the extent we believe it would be beneficial and cost-effective.

We have obtained a registration of the Sweetgreen.com domain name as well.

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The development and operation of restaurants depends to a significant extent on the selection and acquisition of suitable sites, which are subject to zoning, land use, environmental, traffic, and other regulations and requirements.

Our restaurants are also subject to state and local licensing and regulation by health, sanitation, food and occupational safety, and other agencies, which regulation has increased since the COVID-19 pandemic.

Our restaurants are also subject to state and local licensing and regulation by health, sanitation, food and occupational safety, and other agencies.

We may experience material difficulties or failures in obtaining the necessary licenses, approvals or permits for our restaurants, which could delay planned restaurant openings or affect the operations at our existing restaurants.

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We may also be subject to lawsuits or investigations from our current or former employees, the U.S.

Equal Employment Opportunity Commission, the Department of Labor, or others alleging violations of federal and state laws regarding workplace and employment matters, discrimination and similar matters, and we have been a party to a number of such matters in the past.

Equal Employment Opportunity Commission, the Department of Labor, or others alleging violations of federal and state laws regarding workplace and employment matters, discrimination and similar matters, and we are and have been a party to a number of such matters.

These lawsuits and investigations require significant resources from our senior management and can result in material fines, penalties, and/or settlements, some or all of which may not be covered by insurance, as well as significant remediation efforts that may be costly and time consuming, and which we may not implement effectively.

We are also subject to the Americans with Disabilities Act (the “ADA”) and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations and other areas, including our restaurants, website, and smartphone applications.

In the past, we have settled various lawsuits related to our alleged ADA non-compliance, which resulted in accommodations to our website, smartphone applications and physical restaurant locations.

We are currently a party to lawsuits in which it is alleged that we were not ADA compliant, and in the past, we have settled various lawsuits related to our alleged ADA non-compliance, which resulted in accommodations to our website, smartphone applications, and physical restaurant locations.

Our revenue fluctuates as a result of seasonal factors and weather conditions.

Historically, our revenue has been lower in the first and fourth quarters of the year due, in part, to the holiday season and the fact that fewer people eat out during periods of inclement weather (generally the winter months, though inclement weather conditions may occur in certain markets at any time of the year) than during periods of mild to warm weather (the spring, summer, and fall months).

In addition, a core part of our menu, salads, has proven to be more

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popular among consumers in the warmer months.

As consumer behavior trends have changed due in part to the COVID-19 pandemic and the emergence of hybrid or remote work environments, the seasonality in our business has been less predictable than in prior years and we have seen an increase and prolonged negative impact on our revenue around national holidays.

Historically, our revenue has been lower in the first and fourth fiscal quarters of the year due, in part, to the holiday season and the fact that fewer people eat out during periods of inclement weather (generally the winter months, though inclement weather conditions may occur in certain markets at any time of the year) than during periods of mild to warm weather (the spring, summer, and fall months).

In addition, a core part of our menu, salads, has proven to be more popular among consumers in the warmer months.

In recent years, as consumer behavior trends have changed, due in part to the emergence of hybrid or remote work environments, the seasonality in our business has been less predictable than in prior years although we have seen an increased and prolonged negative impact on our revenue around national holidays.

Data Privacy and Security

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Accordingly, we are or may become subject to numerous data privacy and security obligations, including federal, state, local, and foreign laws, regulations, guidance, and industry standards related to data privacy and security.

Such obligations may include, without limitation, the Federal Trade Commission Act, the Telephone Consumer Protection Act of 1991, the Children’s Online Privacy Protection Act of 1998, the Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003, the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020 (“CPRA”), (collectively, “CCPA”), the Canadian Personal Information Protection and Electronic Documents Act, Canada’s Anti-Spam Legislation, the European Union’s General Data Protection Regulation 2016/679 (“EU GDPR”), the EU GDPR as it forms part of United Kingdom (“UK”) law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (“UK GDPR”) (EU GDPR and UK GDPR collectively as “GDPR”), the ePrivacy Directive, and the Payment Card Industry Data Security Standard (“PCI DSS”).

Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020 (“CPRA”), (collectively, “CCPA”), consumer health data privacy laws such as Washington state’s My Health My Data Act, the Canadian Personal Information Protection and Electronic Documents Act, Canada’s Anti-Spam Legislation, the European Union’s General Data Protection Regulation 2016/679 (“EU GDPR”) and the EU GDPR as it forms part of United Kingdom (“UK”) law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (“UK GDPR”) (collectively, “GDPR”), and the Payment Card Industry Data Security Standard (“PCI DSS”).

Several states within the United States have enacted or proposed data privacy and security laws.

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Also, the CCPA provides for civil penalties and a private right of action for data breaches which may include an award of statutory damages.

In addition, the California Privacy Rights Act of 2020 (the “CPRA”), which became effective January 1, 2023, expanded the CCPA by, among other things, giving California residents the ability to limit use of certain sensitive personal information, establishing restrictions on personal information retention, expanding the types of data breaches that are subject to the CCPA’s private right of action, and establishing a new California Privacy Protection Agency to implement and enforce the new law.

In addition, the CPRA expanded the CCPA by, among other things, giving California residents the ability to limit use of certain sensitive personal information, establishing restrictions on personal information retention, expanding the types of data breaches that are subject to the CCPA’s private right of action, and establishing the California Privacy Protection Agency to implement and enforce the CCPA.

Foreign data privacy and security laws (including but not limited to the GDPR) impose significant and complex compliance obligations on entities that are subject to those laws.

As one example, the EU GDPR applies to any company established in the EEA and to companies established outside the EEA that process personal information in connection with the offering of goods or services to data subjects in the EEA or the monitoring of the behavior of data subjects in the EEA.

These obligations may include limiting personal information processing to only what is necessary for specified, explicit, and legitimate purposes;

requiring a legal basis for personal information processing;

requiring the appointment of a data protection officer in certain circumstances;

increasing transparency obligations to data subjects;

requiring data protection impact assessments in certain circumstances;

limiting the collection and retention of personal information;

increasing rights for data subjects;

formalizing a heightened and codified standard of data subject consents;

requiring the implementation and maintenance of technical and organizational safeguards for personal information;

mandating notice of certain personal information breaches to the relevant supervisory authority or authorities and affected individuals;

and mandating the appointment of representatives in the UK and/or the EU in certain circumstances.

See the section titled “Risk Factors—Risks Related to Our Intellectual Property and Information Technology” for additional information about the laws and regulations to which we may become subject and about the risks to our business associated with such laws and regulations.

Corporate Information

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We were founded in November 2006 and incorporated in October 2009 in Delaware.

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Available Information

Sweetgreen’s Annual Report on Form 10-K reports, along with all other reports and amendments filed with or furnished to the U.S.

Securities and Exchange Commission (the “SEC”), are publicly available free of charge on the Investor Relations section of our website at investor.sweetgreen.com or at www.sec.gov as soon as reasonably practicable after these materials are filed with or furnished to the SEC.

Sweetgreen’s Annual Report on Form 10-K reports, along with all other reports and amendments filed with or furnished to the SEC, are publicly available free of charge on the Investor Relations section of our website at investor.sweetgreen.com or at www.sec.gov as soon as reasonably practicable after these materials are filed with or furnished to the SEC.

We also use our website as a tool to disclose important information about the company and comply with our disclosure obligations under Regulation Fair Disclosure.

Our corporate governance guidelines, code of business conduct and ethics and Board committee charters are also posted on the Investor Relations section of Sweetgreen website.

Our corporate governance guidelines, code of business conduct and ethics and Board committee charters are also posted on the Investor Relations section of the Sweetgreen website.

The information on our website (or any webpages referenced in this Annual Report on Form 10-K) is not part of this or any other report Sweetgreen files with, or furnishes to, the SEC.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business