Key Points
October comparable sales rose 5% with 4% transaction growth.
Tenured head coaches leading top stores can earn over $200,000.
Sweetgreen plans to halve net new store openings in 2027.
On its third-quarter 2026 earnings call, held on Nov. 5, 2026, Sweetgreen (NYSE:SG) announced that its sales momentum is building. Long-term investors need to see whether operational tweaks can expand margins and sustain store profitability. Three things management said stand out.
1. High Compensation Targets Aim to Retain Top Restaurant Leaders
Store execution depends heavily on store managers, so management is boosting pay to reduce turnover among experienced leaders. Top performers can now participate in equity and revenue sharing.
Those with three or more years at Sweetgreen who lead our highest volume restaurants can earn over $200,000 a year in total compensation, including equity and a new revenue share bonus based on sales upside.
-- Jonathan Neman, Co-Founder and Chief Executive Officer
2. Labor Scheduling Adjustments Target Higher Margin Efficiency
A recent labor study showed opportunities to align employee staffing with peak customer traffic hours. Management expects better scheduling deployment to reduce costs without hurting guest service.
Based on what we learned from the study and what our best restaurants are already achieving today, we believe there is around a couple hundred basis points of labor efficiency opportunity over time.
-- Jamie McConnell, Chief Financial Officer
3. Store Expansion Slows to Prioritize Individual Unit Profitability
Instead of opening new locations at the previous pace, the company is slowing its expansion to strengthen returns from existing stores. Capital allocation will focus on refining site selection and building design.
Looking ahead to 2027, we expect net new restaurant openings to be about half of the 2026 level as we prioritize strengthening the economics of our existing restaurant base.
-- Jamie McConnell, Chief Financial Officer
Looking Ahead
Transaction growth is improving past prior public health disruptions, showing operational progress across the chain.
We believe we have moved past the sales impact of the Cyclospora headlines, and sales momentum continues to build.
-- Jonathan Neman, Co-Founder and Chief Executive Officer
Sweetgreen benefits from proprietary automated kitchen technology and a growing digital loyalty program. Management is watching menu pricing architecture and prep scheduling to drive long-term value. Focusing on core store economics and disciplined expansion should help stabilize margins.
The work now is to make that performance consistent across the fleet and translate it into profitable growth and attractive returns for shareholders.
-- Jamie McConnell, Chief Financial Officer
The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.