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2d ago

Sweetgreen Shares Slide 25% After Q2 Earnings Miss and Second Outlook Downgrade

Sweetgreen is betting on a new COO-led operational overhaul to address steep same-store sales declines.

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People sit on the steps eating Sweetgreen at The Metropolitan Museum of Art as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on August 29, 2020 in New York City.
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Overview

  • Sweetgreen reported Q2 revenue of $185.6 million and a loss of $0.20 per share, falling short of analyst expectations of $194.3 million in revenue and an $0.11 loss.
  • The company cut its full-year 2025 revenue guidance for the second quarter in a row, lowering its outlook to $700 million–$715 million from a previous range of $740 million–$760 million.
  • Same-store sales declined 7.6% year-over-year in Q2, and Sweetgreen now forecasts full-year same-store sales to drop between 4% and 6% amid tougher comparisons and loyalty program changes.
  • Shares plunged more than 25% in after-hours trading, trading near $9.36 as investors reacted to the disappointing results and outlook cut.
  • Under new COO Jason Cochran and the launch of Project One Best Way, Sweetgreen is focusing on speeding service and improving store execution to boost traffic and margins.