The salad chain reported $192.7M revenue, missing estimates, and slashed full-year guidance amid a cyclospora outbreak impact.
Sweetgreen (NYSE: SG) shares fell 13.2% after the company reported weaker-than-expected second-quarter results and reduced its annual guidance. Revenue rose 3.8% to $192.7 million, below the $194.5 million consensus, while same-store sales declined 6.2%, an improvement from the 12.8% drop in Q1.
Restaurant-level profit margins contracted to 13.1% from 18.9%, and adjusted EBITDA swung to a $0.2 million loss from a $6.4 million gain. The GAAP loss per share widened to $0.22 from $0.20, exceeding the $0.12 loss forecast. The company cited the cyclospora outbreak’s indirect impact for the guidance cut.
Same-store traffic improved, down just 2% in Q2, with flat traffic in June. Discounting and the national rollout of lower-priced wraps pressured average transaction values.