Shares of casual salad chain Sweetgreen (NYSE:SG)
fell 27.2% in the morning session after the company reported disappointing second-quarter financial results and slashed its full-year guidance. The salad chain missed analyst estimates on both the top and bottom lines, reporting second-quarter revenue of approximately $185.6 million and a loss of $0.20 per share. A key factor in the weak results was a 7.6% year-over-year decline in same-store sales, which measures revenue growth at existing restaurants and reflects weaker customer traffic. Compounding the issue, Sweetgreen significantly cut its full-year 2025 revenue guidance. The company now forecasts revenue between $700 million and $715 million, down from a previous range of $740 million to $760 million.
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Shares of Sweetgreen are trading sharply lower Friday morning. The company reported weaker-than-expected Q2 results and cut its full-year revenue forecast.
Sweetgreen led the chatter on Stocktwits for the most discussed consumer and retail company, with a whopping 4,000% jump in the last 24 hours following its quarterly report.
Casual salad chain Sweetgreen (NYSE:SG) missed Wall Street’s revenue expectations in Q2 CY2025, with sales flat year on year at $185.6 million. The company’s full-year revenue guidance of $707.5 million at the midpoint came in 4.4% below analysts’ estimates. Its GAAP loss of $0.20 per share was 64.3% below analysts’ consensus estimates.
Sweetgreen shares are tanking in Thursday's after-hours session after the company turned in worse-than-expected financial results and cut its full-year guidance.
A number of stocks fell in the afternoon session after a surprisingly weak U.S. jobs report and renewed fears over international trade policy fueled concerns about a slowdown in consumer spending.
While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth.
A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.
Restaurants increase convenience and give many people a place to unwind. But the side dish is that they’re quite difficult to operate because high inventory and labor costs generally lead to thin margins at the store level.
This leaves little room for error if demand dries up, and it seems like the market has some reservations as the industry has tumbled by 7.4% over the past six months. This drop is a noticeable divergence from the S&P 500’s 5.4% return.
