The economics of a Sweetgreen salad

5/13/24 12:03PM

Greener linings

Shares in salad seller Sweetgreen jumped a whopping 34% on Friday, after the company beat Wall Street’s expectations, as revenues rose 26% year-on-year to hit $158M in the first quarter.

That makes Sweetgreen — popular for peddling premium salads that can cost as much as $20 — one of the best performing stocks in America this year, having soared more than 185% in 2024.

Raw deal

Investors were buoyed by the company raising both its revenue and adjusted EBITDA guidance for the rest of 2024. However, despite selling more salads than ever before in Q1, Sweetgreen still isn’t profitable... which may come as a shock to anyone who’s paid $15-20 for a salad and left feeling like they could have made it themselves for a fraction of the price.

By indexing Sweetgreen’s earnings to $15 — roughly the price of a typical salad at the chain — it’s easy to see exactly where the leafy costs are coming from. In fact, for every $15 of revenue in Q1, the company incurred operating expenses of more than $17.50.

Interestingly, the cost of the actual food, drinks, and packaging is only a fraction (about $4.15 out of $15 in our example) of the final sale price. Labor costs take another $4.35 bite out of the earnings, and then rent, property costs, and other expenses swallow $3.78. Those total costs tally just over $12 — great! Sweetgreen’s restaurant operations, in isolation, are very profitable for a food service business… but, of course, there are overheads to consider. Those overheads take Sweetgreen well into the red.

Over the hot summer months, Sweetgreen is likely to sell more salads (who doesn’t love a light lunch when it’s hot?), which might finally get the premium salad chain’s bottom line into the black. Other things that might help the rest of this year? Robots and steak.

Beefing up

Last year, Sweetgreen began deploying robots in the kitchen to mix salads, dispense ingredients, and take orders. Indeed, its first automated location opened in Illinois last May, following rivals in the quick-serve sector that were already tinkering with automated stores. That’s good for the “labor” part of Sweetgreen’s costs on the chart above… and less good for employment prospects. In fact, the two locations that are automated, which Sweetgreen calls its “Infinite Kitchens”, posted profit margins (at the restaurant level) of 28%... some 10% higher than all of the others, per QSR.

The other innovation is more recent: Sweetgreen has started selling a number of steak-heavy salads. Those have quickly become best-sellers in initial testing, according to the company, although they jar with the company’s very public push to be sustainable.

Tom Jones6/24/26

Prime Day is here again and Amazon’s subscription service has never been more popular

Well, it’s that time of year again: many have made their wish lists, people are scraping together the money they’ve saved to pick out a perfect gift, some are presumably leaving out refreshments for the weary delivery drivers and, more and more, drones.

It’s Amazon Prime Day — meaning that it’s the second day of the four-day promotional event that Amazon still calls Prime Day — of course, and it’s even come early this year, with the company bringing the period into late June from July, when it’s been traditionally held for the last five years.

The Prime Age

Alongside the eyes and endless clicks that the arbitrary stream of listicles on “The Best Prime Day Deals” that almost every media outlet pours into, Amazon will also be cheering the fact that there’s now more Prime users than ever before to devour the retailer and its sellers’ sometimes-contested “discounts.” Indeed, according to the latest annual estimates from Consumer Intelligence Research Partners (CIRP), there were just over 200 million American shoppers using Amazon’s massive subscription service at the end of 2025.

Max Knoblauch6/15/26

Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

Millie Giles6/11/26

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”