管理層發言
Ladies and gentlemen, thank you for joining us and welcome to the Sweetgreen, Inc. First Quarter 2026 Earnings Call. I will now hand the conference over to Rebecca Nounou, Vice President, Head of Investor Relations. Please go ahead.
Thank you, everyone, and good afternoon. Speaking on today's call will be Jonathan Neman, Co-Founder and Chief Executive Officer; and Jamie McConnell, Chief Financial Officer. Both will be available for questions during the Q&A session following the prepared remarks. Today's call is being webcast live and recorded for replay. The earnings release is available on the Investor Relations section of Sweetgreen's website at investor.sweetgreen.com. I'd like to remind everyone that the information under the heading Forward-Looking Statements included in our earnings release also applies to our comments made during the call. These forward-looking statements are based on information as of today, and we assume no obligation to publicly update or revise our forward-looking statements. We also direct you to our earnings release for additional information regarding our use of non-GAAP financial measures, including reconciliations of non-GAAP financial measures mentioned on the call with their corresponding GAAP measures. Our earnings release can be found on our investor website. And now I'll turn the call over to Jonathan to kick things off.
Thank you, Rebecca, and thank you, everyone, for joining us today. We entered 2026 focused on executing our Sweet Growth Transformation Plan, with a clear priority on strengthening our fundamentals and improving execution across our restaurants. As we communicated last quarter, this work takes time to translate into results, and we expected the first quarter to be the most challenging, given a difficult comparison to the prior year Ripple Fries launch, weather-related headwinds and more work to be done on our transformation plan. While the quarter was pressured, we saw improvement as the quarter progressed with a further step-up in April, reflecting early progress from the actions we have underway through the Sweet Growth Transformation Plan. As restaurant operations continue to improve, we are bringing innovation to market with stronger discipline. Yesterday, we launched Wraps nationwide following a rigorous stage-gate process that validated both the consumer opportunity and our ability to execute in restaurants.
Test results were strong, driving incremental traffic from new and returning guests while expanding our ability to serve more occasions. Now turning to results. For the first quarter of fiscal 2026, revenue was $161.5 million, with comparable sales down 12.8%. We opened 4 net new restaurants, including 3 Infinite Kitchens. Restaurant level margin was 10% and adjusted EBITDA was a loss of $8.1 million. As we moved into April, traffic trends improved, supported by stronger execution in our restaurants, the performance of our Chicken Sesame Crunch Bowl and early contribution from Wraps in test markets, which ran in about one quarter of our restaurants, including New York, our largest market. This reflects a deliberate sequencing, strengthening operations first to build a more consistent foundation and then layering in menu innovation to drive more durable traffic. New York is an important example of the progress we are beginning to see.
Given its significance to our footprint, it has been a key focus as we strengthened leadership, improved Head Coach stability and drove more consistent execution through Project One Best Way. While we still have work to do, transaction trends improved in April, supported by better operations in the Wraps test. We view the progress in New York as an early signal of how the broader system can respond as we continue to execute through the Wraps launch and beyond. We know there is more work ahead of us, and we remain focused on executing against the five strategic priorities under our Sweet Growth Transformation Plan: one, operational excellence; two, food quality and menu innovation; three, personalized experience; four, brand relevance; and five, disciplined profitable investment. Starting with operational excellence, which remains the foundation of our ability to deliver a consistent, high-quality and hospitable experience for our guests.
We continue to strengthen consistency across the system through Project One Best Way, which defines what great looks like at Sweetgreen across craveable food, hospitality, operational flow and people culture. The program is grounded in both customer and restaurant level performance data and is focused on building scalable systems and routines that allow every restaurant to execute at a high level, not just the best ones. Work like this takes time to translate into results, but we are beginning to see improvement in several key operational metrics, including throughput during peak periods, ingredient availability and fewer quality complaints, reflecting stronger operational readiness across the fleet. At the same time, we recognize there is still meaningful opportunity ahead, and we will continue raising the bar as performance improves. That stronger foundation has been critical as we move into the national rollout of Wraps.
We have taken a disciplined stage-gate approach to get here with teams spending months in development and testing, including extensive work in restaurants to build capability, train teams and ensure operational readiness. One of the core principles for our Wraps experience is that the first bite should be the best bite. To deliver on that consistently, we refined our preparation process through multiple rounds of testing and iteration, including in-restaurant operations shakedowns to validate equipment, positioning and workflows. This work ensured we can deliver on quality while maintaining throughput at peak. We then validated the concept through a multi-month market test across approximately 70 restaurants, where we saw strong guest response alongside solid execution in the field. The energy in the field is strong, and we are encouraged by how teams are performing out of the gate. Our focus remains on execution, ensuring every wrap is made right, throughput is strong and the guest experience is consistent from day one.
This quarter, we brought our New York market head coaches together for an Impact Day focused on reconnecting our restaurant leaders to the guest experience through culture and hospitality. Two weeks ago, we also brought our area leaders together for a two-day summit to reinforce consistent execution across markets. The focus was on three major themes: strengthening head coach performance, building the culture of hospitality where speed and service work together and delivering consistent food quality that drives repeat visits. Together, these sessions are helping create greater alignment on the experience we want to deliver and the standards required to deliver it every day. To continue this focus, we will bring our head coaches together for impact days across our remaining regions in the coming weeks. What stood out most to me from Impact Day and the Area Leader Summit was the importance of the connection between our restaurant support center and our field teams.
Delivering a better guest experience starts with strong alignment between the teams closest to our guests and those supporting them. Our head coaches and area leaders are closest to day-to-day operations and their input is critical in helping us refine how we deliver on our standards across food, hospitality and operations. The best ideas come from our restaurants. Building on that operational foundation, one of our key priorities this year is menu innovation, led by the national launch of our Wraps platform. This represents our most significant menu expansion in several years, designed to expand occasions and introduce a more accessible entry point into the brand. We launched Wraps with a core lineup of craveable flavors, including the Classic Chicken Caesar, Chicken Jalapeno Ranch, and Cali Chicken Club, along with the limited-time KBBQ Chicken. We started with our food ethos, delivering flavors through ingredients that don't just taste good, but also make you feel good.
That means preparing seasonal ingredients from scratch every day, cooking our grains, vegetables and antibiotic-free proteins without seed oils and using no artificial flavors, colors or dyes. We were intentional about every component of the wrap, starting with the tortilla. Early in development, we were unable to find a tortilla in the foodservice market that met our standards. So we partnered to create one made with only four ingredients: extra virgin olive oil, unbleached and unenriched wheat flour, sea salt and water, with no preservatives. Guests can taste and feel the difference with social reviews consistently highlighting the quality and flavor of the tortilla. The energy around the test leading into yesterday's launch has been incredible. Wraps are already appearing in a meaningful share of social content tagging Sweetgreen with positive sentiment of around 85%. Guests are responding to the value with entry price points starting at $10.45 and ranging up to $14.95.
This launch is supported by one of our largest social marketing campaigns to date, partnering with hundreds of micro and scaled creators who authentically represent culture to drive awareness and engagement across a range of diverse communities. Our confidence in Wraps is based on the results we saw in testing. Over a multi-month period across approximately 70 restaurants in New York, the Midwest and Los Angeles, Wraps drove incremental traffic from new and returning guests, helped reengage lapsed customers, and showed strong repeat behavior. We are pleased with the combination of incremental traffic and improved customer retention, reflecting strength as a new platform and expanding how guests engage with the brand. Importantly, execution remains strong with throughput maintained and lower-than-average guest complaints. Taken together, these results give us confidence in both the strength of the Wraps platform and our ability to scale it nationally.
We are also continuing to innovate and strengthen our core menu. The Chicken Sesame Crunch Bowl, which launched in March, is already our second-highest mixing salad and contributed to improving trends as the quarter progressed. It is now a permanent menu item, reflecting strong guest response. At the same time, we have rebuilt our pipeline of both core and seasonal innovation for the balance of the year, including summer and fall menu updates, new core offerings, continued expansion of the Wraps platform and upcoming collaborations with leading chefs, bringing distinctive chef-driven flavors into the menu that reflect the core of our brand. This approach allows us to stay relevant with our existing guests while continuing to bring new guests into the brand. I'm encouraged by the product innovation we're bringing this year as well as the progress we're making to elevate the quality and consistency of our core menu.
We've continued to see an increase in salmon entree sales following our internal Miso My Salmon campaign, which was designed to sharpen execution and elevate quality across the system. We've taken the same approach to our other core menu ingredients. For example, we've refined our measurement of protein cook cycles and hold times to ensure dishes are served at peak freshness and have elevated seven of our core ingredients like romaine, quinoa, carrots, napa cabbage slaw and breadcrumbs. This remains an area of focus as we continue to drive greater consistency across the fleet. Looking ahead, we will begin testing a rearchitected pricing ladder in late June. Central to this work is the introduction of clear entry price points and a new Create Your Own construct that is designed to deliver greater price clarity and a more intuitive ordering experience. Together, these efforts will make pricing clearer and make it easier for guests to choose and order, supporting incremental transactions across price points.
We are pacing these initiatives deliberately using disciplined reads on guest response and P&L impact to guide rollout decisions with a focus on bringing more guests into the brand and increasing frequency over time. Turning to our personalized digital experience. Our strategy focuses on deepening our connection with customers, driving engagement and increasing customer lifetime value through more targeted one-to-one interactions. At the center of this strategy is our SG Rewards loyalty program, which enables us to deliver personalized offers, incentives and experiences that make it easier for customers to engage with the brand while driving frequency and spend. At the beginning of the year, we introduced our Craving of the Month program, a key pillar within SG Rewards and a loyalty-exclusive limited time offer available through the Sweetgreen app at a compelling value. The retention and incremental spend signals are encouraging.
Of guests who redeemed a Craving of the Month offer, we see higher frequency and higher net average revenue per user. We also see that this program draws in at-risk and lapsed customers, while driving incremental visits with lighter frequency cohorts. While still nascent, this exclusive platform within our loyalty program is helping us win back customers, drive incremental transactions and incremental spend. Later in the second quarter, we will introduce lower redemption thresholds to our loyalty program, designed to be achievable in fewer visits, making the program more accessible and engaging for a broader set of customers. These new redemption thresholds will include a $3 credit at 700 points, a $5 credit at 1,200 points, and a free wrap reward at 2,000 points. Based on the current customer redemption behavior, we expect these changes to drive increased loyalty engagement and higher visit frequency, especially in our lower frequency customer cohorts.
Before I close, we are excited to welcome Ryan Slemons as our new Chief Development Officer. Ryan brings deep experience across real estate, design, construction and portfolio management with a strong track record of scaling high-quality growth across leading retail and restaurant concepts. His focus on thoughtful design and site selection will be critical as we expand our footprint, reimagine our spaces and create better experiences for our guests and team members. We will also reinforce discipline around build-out costs and capital allocation, supporting consistent high-return unit growth. To close, while the quarter was pressured, we are still in the early innings of our transformation, and we are beginning to see signs that the actions we are putting in place are gaining traction. We are seeing improvement in execution across our restaurants, greater consistency in the guest experience and stronger alignment across our teams.
The progress through the quarter and into April, along with the energy in the field, reinforces that we are focused on the right operational priorities and building a stronger foundation for Sweetgreen. I want to thank our restaurant teams for leaning in and embracing the higher bar we are setting on hospitality and execution, especially as we build momentum coming out of our recent Area Leader Summit. At the same time, we are operating with greater focus as we rebuild the top line. The national launch of Wraps is an important step forward and a clear example of how we are approaching innovation differently. We took the time to test, learn and ensure we could execute at a high level, and the early response gives us confidence in the opportunity to drive incremental traffic and expand into new occasions. As we move through the year, we will continue to build on this foundation by improving execution, refining our menu and pricing architecture, strengthening the guest experience and driving greater discipline in our investments.
As these actions take hold, we expect to see stronger restaurant level performance over time. We are confident in the path we are on and in our ability to build a more consistent, profitable and durable Sweetgreen brand. With that, I'll turn it over to Jamie.
Thank you, Jonathan, and good afternoon, everyone. First quarter results were below our expectations with comparable sales down 12.8%. As Jonathan outlined, we saw improvement as the quarter progressed with trends continuing to improve into April. Sales in the quarter were $161.5 million compared to $166.3 million a year ago. The decline in comparable sales was driven by an 11.2% decrease in traffic and a 2.3% decline in mix, partially offset by approximately 70 basis points of menu price. Traffic was impacted by weather and a difficult comparison to the prior year Ripple Fries launch, which created a headwind to both traffic and mix. Mix declined in the quarter, reflecting strategic promotional offers to reengage guests as well as the transition to SG Rewards. Traffic improved sequentially through the quarter, supported by menu innovation and targeted loyalty offers with improvement continuing into April.
As we look ahead, we expect comparable sales trends to improve as we continue to execute our transformation plan with Wraps now launched nationally. The comparisons also become easier as we move through the year. Restaurant level margin was 10%, down from 17.9% last year. Food, beverage and packaging costs in the quarter were 29% of revenue, an increase of 250 basis points year-over-year. The increase was primarily driven by higher ingredient usage, portion investment and targeted pricing and promotional investments, partially offset by supply chain saving initiatives. Ingredient usage was a headwind of approximately 140 basis points year-over-year. We have taken initial steps to improve visibility into these drivers for our field teams, which is helping us better identify and prioritize the opportunities across the system. Our focus is on improving the flow of food in our restaurants from receiving orders to inventory management, prep and ensuring accuracy at the point of sale.
While we are still early, we see this as a meaningful opportunity to improve consistency and reduce variability over time. We are taking a disciplined approach. While we have made progress on visibility, there is more work to do to strengthen the tools and processes that support the field. This requires alignment between the systems and how our restaurants operate. So we are being thoughtful about how we evolve and roll this out to ensure it works effectively in our restaurants and delivers consistent results. For the second quarter, we expect food, beverage and packaging costs to be in line with the first quarter with pressure from weather-related produce costs as well as fuel surcharges. We expect the produce-related pressure to be transitory and largely concentrated in the quarter. First quarter labor and related expenses were 31.4% of revenue, an increase of 250 basis points year-over-year.
This was primarily driven by sales deleverage and wage inflation. In our restaurants, we are focused on getting the right labor in the right place at the right time with work underway across staffing and scheduling to better align labor to demand throughout the day, particularly during peak hours where better coverage supports throughput and the customer experience. For the second quarter, we expect labor cost to be in the low 29% range, reflecting low single-digit wage inflation. Other operating expenses for the quarter were 18.5% of revenue, an increase of 110 basis points year-over-year, driven primarily by sales deleverage. G&A expense in the quarter was $29.3 million, a decrease of $9.1 million year-over-year. The improvement was primarily driven by lower stock-based compensation and reduced salary and benefits following our 2025 headcount reduction initiatives. Underlying support center costs, excluding stock-based compensation and one-time expenses, was $23.2 million, a decrease of $4.5 million year-over-year.
We are maintaining discipline in support center spending while continuing to invest in the capabilities that matter most to the transformation. Net income for the quarter was $125.8 million compared to a net loss of $25 million in the prior year. This was primarily driven by a one-time gain from the sale of Spyce, which closed during the first quarter of 2026. Adjusted EBITDA was a loss of $8.1 million compared to a gain of $285,000 last year, driven primarily by lower restaurant level profit. We ended the quarter with $156.8 million in cash. During the quarter, we opened 4 net new restaurants and ended the quarter with 285 restaurants, of which 33 restaurants are powered by the Infinite Kitchen. Now turning to fiscal year 2026 guidance. We are reiterating our same-store sales guidance with Wraps now in Sweetgreen restaurants nationwide and comparisons easing. We expect same-store sales to be a decline in the range of negative 4% to negative 2%.
We expect restaurant level margin to range from 14.2% to 14.7% and adjusted EBITDA to range between $1 million and $6 million. On unit growth, we now expect to open approximately 13 net new restaurants this year, reflecting 18 openings and a handful of lease-related closures, where we mostly see an opportunity to strengthen nearby locations. Our development pipeline is equally weighted this year and nearly half of our openings will feature the Infinite Kitchen. To close, we are still early in our transformation work, but we are beginning to see progress from the actions we have taken. As execution improves and we bring more discipline to how we operate and invest, we expect to see more consistent performance over time, supported by initiatives like the national launch of Wraps as we rebuild top line momentum and improve restaurant level economics. Our focus remains on strengthening execution in our restaurants, restoring traffic and managing cost and capital discipline. With that approach, we are focused on building a more consistent and profitable Sweetgreen over time. And now we're happy to take your questions.
分析師問答
Our first question comes from the line of Jeff Bernstein with Barclays.
Great. This is Pratik on for Jeff. Very encouraging to hear the April traffic trends improving. And in the release, you referred to the momentum you have. Could you just level set with us what degree of improvement you've been seeing? It would just be helpful to get kind of an embedded assumption from you for how you see the rest of the quarter playing out, even if you're not explicitly guiding to a comp number in the second quarter?
Yes. So we saw January and February — starting with Q1, we saw some pressure with the weather. But as we moved into March, we saw about 100 basis point improvement in transactions. We also have price fully rolling off, and we had some mix headwinds due to some of the promotional activities and as we launched SG Rewards. And in April, we improved to about a decline of negative 8%. And we just launched Wraps. And so we're excited about our launch from all the results that we saw in the testing, and we expect that Q2 to land around negative 4%.
Your next question comes from the line of Brian Bittner with Oppenheimer & Company.
This is Mike Tamas on for Brian. You talked about the improving operations and also the incrementality from Wraps. So I guess, can you maybe just help us understand what that incrementality looks like from the Wraps? And then as the year unfolds, you're talking about doing more menu innovation, but also having all of these improvements in operations that you've done so far and more to come. So what guardrails are you putting in place to sort of make sure that the operations don't deteriorate as you step up that amount of menu innovation?
Sure. Thanks for the question. So as it relates to Wraps, as I mentioned in the prepared remarks, we took a very disciplined approach, starting with an operations shakedown, a rapid ops test in eight stores and then a multi-month stage-gate process in three separate markets. And we were able to both understand the operational impacts as well as the customer behavior. While I'm not going to guide to an exact number on incrementality, I'll say that we were very encouraged. It mixed in really well. We saw really high return rates on the Wraps. I think most importantly, customers were really delighted with the quality as well as the price. The Chicken Caesar Wrap, in most — it starts at $10.45 in certain markets, and no wrap in any market is above $15. So I think both from quality, craveability and price value, we are really delivering and customers are noticing it. So it definitely is incremental, and that was all before media.
But typically, we do see a pretty nice lift once we advertise things, and we have one of our largest social-first campaigns going live right now, getting much more awareness in trial. So we're still very early. We launched yesterday, but very encouraged by how it's mixing in, the response and the comeback rate on Wraps. As it relates to operations and menu innovation, we really spent last year instituting Project One Best Way, really building the operational foundation with a focus on people, food, feel and flow. And we've gotten much better. We've seen our quality complaints come down significantly. We've seen our in-stock percentages improve, so our out-of-stocks go down significantly. So much more in stock. So we feel good about how we're operating there. And the focus has really moved more towards culture within our restaurants and hospitality as well as continuing to elevate the quality and consistency of what we do.
Given the stage-gate process we have, everything that we're putting out from a menu innovation perspective both has to meet our operations sandbox requirements in terms of complexity and number of ingredients and any incremental labor hours, but also has to go through a stage-gate process to make sure it doesn't disrupt our core operation. If I can leave you with anything, it's that the most important thing we are focused on right now is the fundamentals of delivering an excellent customer experience. The menu innovation is all layered on top of that. That's what gives us confidence with Wraps and future menu innovation: we believe we've laid the operational foundation to continue to innovate. We have a robust innovation calendar coming for the rest of the year, but done in a way which really limits the complexity for our store teams and should be something that customers love. So very encouraged by the recent momentum. But as I mentioned, we're still early in the transformation and there's a lot of work to do.
Your next question comes from the line of Sara Senatore with Bank of America.
Austin on for Sarah. Just in the line of menu additions, it kind of seemed like protein plates were an important driver back in 2024, but kind of faded moving into 2025. Are there any learnings on how you guys will manage that with Wraps on the menu now just going through the remainder of the year?
Yes, that's a good question. One of the learnings is to consistently bring new news to a category. So what you'll see us do with Wraps is not only the launch of Wraps being compelling, but continuing to support it with media and new news and new wrap builds. Today, we have three core wraps and one limited-time offering. We have a couple of planned incremental wraps that we will introduce throughout the year, whether that be core or limited-time. Today, it's four signature wraps, all can be modified. We know customers eventually want a build-your-own wrap, which is something that we're looking at. Plates have been successful. They've helped us grow our dinner. Some of those plates do exceptionally well like our Miso Salmon plate. We do expect to continue innovating on the plates category. Expect some more innovation on plates. It's something that we know our customers love.
The next question comes from the line of Sharon Zackfia with William Blair.
You've done so much work over the last year in different efforts to improve your value perception. And I'm curious if you have any kind of quantifiable research on how the consumer has recognized that. Do you think you're getting credit for all of the efforts you've done? And what have you done that's really landed well and where were maybe you a bit more disappointed in something that you rearchitected that the customer just didn't really appreciate?
Thank you, Sharon. So as you mentioned, we have been working on value perception through a number of different initiatives. I think first and foremost, we are proud of the food we serve. We believe when we execute on our core fundamentals and deliver a great customer experience that given all that we do from a sourcing and scratch cooking perspective, we offer tremendous value. Having said that, we do see opportunities to offer more entry-level pricing and a different pricing ladder for different consumers to drive acquisition and repeat behavior. A few of the things that we've done that we believe are resonating: one is Wraps. If you look at the social commentary on Wraps, some of the lower pricing is really resonating, and we are seeing the comeback rate or the return rate of many of those customers as an encouraging sign. Two, we're getting more juice out of our loyalty program, both the core program as well as Cravings of the Month.
We're seeing high adoption of that. As I mentioned on the call, we're seeing the average revenue of those users be incremental. So it's a good activation for both new customers and lapsed customers, and those customers stick with us. We do not plan on continuing promotional discounts at this level. We do expect to wean off of this. The biggest price moves we're going to make, we're going to go into test in about a month or so on a whole pricing architecture change, which I described in the prepared remarks, both on our Build Your Own framework as well as testing some more entry-level pricing. As it relates to data to quantifiable research, we have now done a baseline on price value. Over coming quarters, we'll share more on how that has changed. But really the focus is delivering on the fundamentals and delivering a great customer experience. When we do that, what we offer is worth the money, and we're proud of that.
The next question comes from the line of Jon Tower with Citi.
I just maybe you can help us think through: there's a lot of moving parts on the business right now, whether it's Wraps or changing the pricing architecture in the future. How are you thinking about incremental flow-through going forward for the business? Specifically, with focusing on lower price points, I would assume that check is going to be a little bit lower. Can you help us think through that?
Yes. So we still expect flow-through to be around the 40% range. What we are seeing with Wraps is there is some check dilution, but we are getting the incremental transactions. What we're also seeing is the prep for the produce that goes into the wraps is less and waste is less. So we're actually seeing favorable cost of goods sold on our wraps even with the lower price point. As we test the menu price architecture, that's something we're going to be very careful and sequenced about, and that's why we've paced every kind of discount and promotion that we've done because we want to measure the results and make sure we get the return. We're going to be disciplined about that approach and make sure that it's working.
Your next question comes from the line of Andrew Charles with TD Cowen.
This is Zach Ogden on for Andrew. For the full year restaurant level margin guidance, it does imply about 100 basis points, maybe a little bit more in the second half of the year in terms of leverage. So can you talk about the drivers that will get you back to that margin level leverage? And then maybe talk about any pricing plans as a part of that?
Yes. When you look at our margins for the quarter, about half of it is sales deleverage. We also have wage inflation of about 40 basis points, but the remainder is really within our control. There's a lot of work being done behind the scenes, especially as it relates to cost of goods sold. We have just introduced visibility to the field on the waste by different categories, but there's still a lot more work to be done to make sure that they're ordering the correct amount, they're prepping the right amount and that we're giving them the tools to be successful in doing this. We've unlocked the visibility, but we plan to unlock the tools through the back half of the year, and we are seeing quarter-over-quarter improvements. Also within labor, we have a labor study going on right now. We are looking at our labor and making sure that we have the right people staffed during the peak hours to drive throughput and make sure that we're getting sales leverage on those transactions. So a lot of work being done behind the scenes on the margin.
Your next question comes from the line of Rahul Krotthapalli with JPMorgan.
Can you update us on where you are in the efforts around reestablishing the coolness factor, if you will, as you continue to be a premium and aspirational brand while also being affordable and making progress in democratizing wellness and mindful eating? And I have a follow-up.
Thanks, Rahul. One thing I'll point to broadly is last year we rebuilt our leadership team. Under our Chief Commercial Officer, we've rebuilt much of our marketing and brand team. We are taking a new approach to how we invest in the brand and leaning more into the lifestyle elements. The first thing that builds a brand, and my team hears me say this often, is word of mouth on delivering a great experience in our restaurants. So first and foremost is executing an excellent customer experience and living up to our promise around consistency, quality and hospitality. We're also leaning into some new things. For example, with our Wraps launch, you'll see a different kind of launch with a more bottoms-up approach with social-first content and other moves into culture. As you move into the summer, you'll see us do some notable things leaning into collaborations in both culture and chefs, something that we've done in the past that resonates with our guests. You're also seeing us do a lot more real-life events. Even tonight, we're celebrating our Wraps launch with an event here in Los Angeles at our Silver Lake restaurant. Expect much more with creators, influencers, storytelling and leaning into the lifestyle elements of the brand. So expect to see more as the year continues.
On the owned digital customers approaching 40%, there's a lot of work being done on our loyalty channel. That's why we're beginning to see momentum there, especially within our native channel. With the Cravings of the Month and targeted loyalty actions, we are seeing improvements in our own channel. We're also seeing increases of loyalty users signing up month-over-month.
The other change in owned digital is continued momentum on people using loyalty in restaurants from a scan-to-pay perspective. The scan-to-pay has reached about 20% of in-store transactions. That's a positive signal because once we get them into our digital ecosystem, we love them ordering in restaurant, but that gives us the benefit of ordering in restaurant and having a digital connection where we can market to them directly. So some encouraging signs around frequency, but there's a lot more work to do.
Congrats on the Wraps launch. The KBBQ is my favorite and it's fire.
Our next question comes from the line of Kelly Merrill with Morgan Stanley.
I just wanted to continue on the digital conversation and see if you had anything else to add as percent digital revenue and owned digital revenue saw a nice tick up sequentially and year-over-year. And then just one more: what trends have you been seeing on third-party delivery as of late?
Sure. We've continued to invest in our digital ecosystem. We're probably best-in-class in our digital experience in restaurants, not only what we do within our app, but how we support it in our restaurants. We've been intentional about building an omnichannel restaurant where we don't disrupt the in-store experience for digital customers. We've done a lot of work on the back end, like throttle management, working on accuracy and on-time rates so people can trust those digital channels. We continue to A/B test features, and we have a robust roadmap across the rest of this year. We've accelerated our digital roadmap, especially given the advent of AI; we can move faster on a lot of those things. Customers really love and trust our digital experience. Remind me the second part of your question?
Just on trends in third-party delivery recently.
Trends in our third-party delivery: that is a channel we're focused on. There's a number of work streams under place-to that, one, make sure we're delivering a great experience and not missing items or being inaccurate. We've been working on that, including time-to-order and pick-up. There's a lot of work behind the scenes. We've seen some good improvement on our native channel and marketplace is starting to improve; we're seeing trends improve into April.
Marketplace has improved into April. We've optimized both the paid side of the marketplace and the organic side. There's a lot we can do to show up higher in the algorithm, especially around wait times, order readiness and small items like marketplace SEO. Getting smarter and sharper there, we expect marketplace to be a strong growth channel for us the rest of the year.
Your next question comes from the line of Brian Mullan with Piper Sandler.
Just a question on development specific to next year. Not looking for precise guidance, but really just trying to understand your current appetite to build new restaurants beyond projects that are already underway during the time period that you're going through this fleet transformation plan process. So just how you're thinking about development right now?
Yes. We're taking a very disciplined approach, focused on high return on invested capital restaurants that we have a high level of confidence in. We don't expect an acceleration in development until we start to see the flywheel working, comps improving significantly and we feel much better about the core operation. We will continue to develop new restaurants. We're working on both the design and prototype of new restaurants. We're excited to welcome our new Chief Development Officer, Ryan Slemons. Expect a tempered year of development, and we'll come back with more as the year progresses.
And our final question comes from the line of Dennis Geiger with UBS.
This is Paul on with Dennis. My first part is encouraging to see the improvement in April so far. I appreciate the color you provided on transactions and pricing. Just wondering if you noticed any shift in consumer behavior during the past few months? And then the second part was following up on the development pipeline question, particularly over the longer term, what is the future opening mix between entering new markets and penetrating further in existing markets?
In terms of consumer behavior, we are seeing some improvements in our younger cohorts. The 18 to 35 segment has really started to pick up, which is good to see. In March, we launched our Chicken Sesame Crunch Salad. That was a huge hit. Now we have launched Wraps. We're hoping to continue seeing momentum. In terms of the development pipeline, I'll turn that over to Jonathan.
As it relates to the development pipeline, we're focused on building out many of the newer markets where we've seen success. One bright spot in development recently has been a number of those new markets. For example, we entered Phoenix last year and we're seeing about $3.2 million AUVs in that market. We're in Sacramento with about $3 million AUVs. Some really bright spots in these new markets, but we still have a number of new markets where we're lightly penetrated and have a lot of room to grow. So probably not a lot of totally greenfield markets and more building out those lightly penetrated markets so we can get efficiencies around supply chain, operations and brand.
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