Sweetgreen, Inc.SG

Sweetgreen, Inc. Leases Disclosure

10-KFiled Feb 27, 20262 min read
LEASES
The components of lease cost were as follows:
(dollar amounts in thousands)ClassificationDecember 28, 2025December 29, 2024December 31, 2023
Operating lease costOccupancy and related expense
General and administrative expense
Pre-opening costs		$58,022 $51,576 $48,168
Variable lease costOccupancy and related expense
General and administrative expense		13,263 12,219 11,055
Short term lease costOccupancy and related expense
General and administrative expense		416 612 422
Sublease incomeGeneral and administrative expense— — (356)
Total lease cost$71,701 $64,407 $59,289 
During the fiscal years ended December 28, 2025 and December 29, 2024, the Company recorded non-cash impairment charges related to operating lease assets of $1.6 million and $0.4 million, respectively, which were recorded within impairment and closure costs in the consolidated statements of operations. During the fiscal year ended December 31, 2023, the Company recorded non-cash impairment charges related to operating lease assets of $4.3 million, all of which was recorded within restructuring charges in the consolidated statements of operations. See Note 1.

As of December 28, 2025, future minimum lease payments for operating leases consisted of the following:

(dollar amounts in thousands)
2026$63,503 
202768,070 
202862,745 
202961,179 
203055,319 
Thereafter
149,013 
Total
459,829 
Less: imputed interest105,335 
Total lease liabilities$354,494 

As of December 28, 2025 the Company had additional operating lease commitments of $14.6 million for non-cancelable leases that have not yet commenced, which the Company anticipates will commence in fiscal year 2026. The nature of such lease commitments is consistent with the nature of the leases that the Company has executed thus far.

A summary of lease terms and discount rates for operating leases as of December 28, 2025 and December 29, 2024 is as follows:
December 28, 2025December 29, 2024
Weighted-average remaining lease term (years):
Operating Leases7.167.32
Weighted-average discount rate:
Operating Leases6.88 %6.75 %

Supplemental cash flow information related to leases as of December 28, 2025, December 29, 2024 and December 31, 2023 as follows:
December 28, 2025December 29, 2024December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net of lease incentives$64,443 $39,965 $42,425 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$65,387 $46,167 $24,416 
Derecognition of operating lease assets due to termination or impairment
$1,594 $389 $4,291 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 23, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance