Jim Cramer Reveals Why Sweetgreen, Inc. (SG) Is Struggling

We recently published Jim Cramer Just Couldn’t Stop Talking About These 13 Stocks. Sweetgreen, Inc. (NYSE:SG) is one of the stocks Jim Cramer recently discussed.

Sweetgreen, Inc. (NYSE:SG) is a fast food company whose shares are among the worst performers in 2025 as they have lost a stunning 71.6% year-to-date. The reason the shares have just been obliterated is Sweetgreen, Inc. (NYSE:SG)’s financial performance, which saw it cut guidance again in August. This guidance cut came as part of the firm’s second-quarter earnings report, which saw Sweetgreen, Inc. (NYSE:SG) miss analyst revenue and EPS estimates of $192 million and -$0.12 by posting $186 million and -$0.20. Crucially, the firm also cut full-year revenue guidance to a $707.5 million midpoint, which was a significant drop over its earlier guidance of $750 million. Cramer asserted that Sweetgreen, Inc. (NYSE:SG) is struggling due to high prices:

“They’re too high. Costs too much. Versus when you go to Brinker and you get that ten dollar burger with a three for me, they use top shelf. . .”

Previously, the CNBC TV host discussed Sweetgreen, Inc. (NYSE:SG)’s business environment:

“Sweetgreen and CAVA… Last week… the salad chain announced that its same-store sales had fallen by 7.6%. Wall Street was looking for a 5.5% decline. Sweetgreen lost 20 cents per share. The analysts were only looking for an 11-cent hit.

… To me, it’s pretty clear what’s going on. CAVA and Sweetgreen have to lower their prices or give us a couple of much lower-priced dishes if they want to turn things around. For now, they’re pricing themselves out of this American market. I get why they’re reluctant to cut prices. What business wants to lower margins?… The problem is, unlike McDonald’s, they’re either maybe too proud or too obtuse, I don’t know, to realize that the consumer’s gotten serious about avoiding high-priced foods, including theirs, even though the food is fresh and good.”

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.