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SG
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11 days

Sweetgreen shares drop 25% after salad chain cuts outlook for the second time in two quarters

1. Sweetgreen shares dropped over 25% after cutting 2025 revenue outlook. 2. Revised revenue forecast of $700-$715 million, down from previous estimates. 3. Projected same-store sales decline of 4% to 6% for 2025. 4. CEO cited loyalty program transition and weak consumer sentiment as issues. 5. Focus on improving operations and customer satisfaction going forward.

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FAQ

Why Very Bearish?

The significant revision of revenue and profit outlook reflects poor performance, reminiscent of high-profile retail collapses that led to major stock declines.

How important is it?

The drastic outlook change and operational challenges indicate significant headwinds for SG's stock price.

Why Short Term?

Market reactions to poor earnings typically manifest quickly, but ongoing improvements may take longer.

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