Shares of Sweetgreen (SG) are down 25% after the restaurant chain lowered its 2025 outlook for the second quarter in a row, citing weak consumer sentiment.
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For all of this year, Sweetgreen now expects revenue of $700 million to $715 million, down from an earlier forecast of as high as $780 million. Management at the restaurant chain that specializes in salads also blamed issues with its loyalty program, tariffs, and store challenges for the guidance cut.
Sweetgreen added that it expects negative same-store sales growth in 2025, estimating declines of 4% to 6%. Previously, management had forecast single-digit same-store sales growth. Sweetgreen CEO Jonathan Neman said the company had a “really rough quarter.”
Cautious Consumers
Neman added that “a more cautious consumer environment starting in April, lapping a tough comparison with last year’s successful steak launch and the transition of our new loyalty program at the beginning of the quarter” contributed to the lowered forward guidance.
Alongside the guidance cut, Sweetgreen reported second-quarter earnings and revenue misses, announcing a loss of $0.20 per share versus a loss of $0.12 expected by analysts. Revenue in Q2 came in at $186 million compared with Wall Street estimates of $192 million. Same-store sales dropped 7.6% during the quarter. SG stock is down 70% this year.
Is SG Stock a Buy?
The stock of Sweetgreen has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on seven Buy and seven Hold recommendations issued in the last three months. The average SG price target of $15.17 implies 60.53% upside from current levels. These ratings could change after the company’s financial results.
