Why Sweetgreen Stock Was Going Sour Today

Key Points

• Sweetgreen missed estimates on the top and bottom lines and comparable sales tumbled.

• The company is facing macro headwinds, difficult comparisons, and a shift in its loyalty program.

• Guidance indicated the second half of the year would be challenging as well.

• 10 stocks we like better than Sweetgreen ›

Shares of Sweetgreen (NYSE: SG) were plunging today after the fast-casual salad chain reported another disappointing quarter, including a comparable sales decline and a widening loss on the bottom line.

Unsurprisingly, the results drove more investors away from what seemed like a promising growth stock not long ago. At 12:21 p.m. ET, the stock was 25.6% on the news.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Sweetgreen faces more challenges

Same-store sales fell 7.6% in the quarter after jumping 9.3% the year before, and overall revenue ticked up just 0.5% to $185.6 million, missing estimates at $191.8 million.

Management noted several headwinds weighing on the business, including macroeconomic pressures, a challenging comparison with the quarter a year ago, and a transition in its loyalty program.

On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $12.4 million to $6.4 million, and the loss per share according to generally accepted accounting principles (GAAP) widened from $0.13 to $0.20, which was significantly worse than expectations at $0.05.

CEO Jonathan Niman said, "While we're not satisfied with today's results, we're confident in our ability to improve in the back half of 2025. Early signs from our new loyalty program are encouraging, our summer menu is bringing customers back more often, and we remain fully committed to raising the bar on execution across every restaurant."

What's next for Sweetgreen

Looking ahead, management's guidance didn't call for any immediate recovery. For the full year, it expects a same-store sales decline of 4%-6%, and revenue of $700 million-$715 million, which compares to the consensus at $713.8 million, and represents growth of less than 5% at the midpoint.

The company continues to expand its footprint with 40 new restaurants expected this year, but it will have to improve profitability and return to comparable sales growth in order for the stock to recover.

Should you invest $1,000 in Sweetgreen right now?

Before you buy stock in Sweetgreen, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sweetgreen wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*

Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Jeremy Bowman has positions in Sweetgreen. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.