Reportable SegmentThe Company operates as one operating segment and one reportable segment. The chief executive officer serves as the Company’s chief operating decision maker (“CODM”), defining segments based on the way the Company’s internally reported financial information is regularly reviewed by the CODM to analyze financial performance, make decisions, and allocate resources. The Company has one revenue stream, generating revenue from retail sales of food and beverages by company-owned restaurants within the United States. The menu design and related food and beverage offerings, food ethos, store operations, and distribution channels are consistent throughout the United States. Accordingly, the CODM manages business activities, allocates resources and assess financial performance on a consolidated basis. The accounting policies applied are consistent with those described in the summary of significant accounting policies. Sweetgreen does not have intra-company sales or transfers.
The CODM assesses performance for Sweetgreen and decides how to allocate resources based on Net loss as reported on the consolidated statements of operations. This metric enables the CODM to monitor budget versus actual results and benchmark against competitors, used to evaluate the Company’s performance. Assets are managed centrally and are reported internally in the same manner as the consolidated financial statements. Therefore, no further information is disclosed herein.
Other than certain disaggregated expense information provided in relation to General and Administrative expense (“G&A”), significant expenses regularly provided to the CODM is presented on the face of the
statement of operations. The CODM is also regularly provided disaggregated expense information for G&A, which is disaggregated between operating support center cost, stock-based compensation, all of which was included within G&A (see Note 10), and other expenses, as shown below:
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended
December 28, 2025 | | Fiscal Year Ended
December 29, 2024 | | Fiscal Year Ended
December 31, 2023 |
| General and administrative | | | | | |
Operating support center cost(1) | $ | 103,745 | | | $ | 107,626 | | | $ | 95,452 | |
| Stock-based compensation | 36,475 | | | 39,024 | | | 49,532 | |
Other expenses(2) | 3,181 | | | 3,292 | | | 1,778 | |
| Total General and administrative | $ | 143,401 | | | $ | 149,942 | | | $ | 146,762 | |
| | | | | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.