Customer SoftnessThis is a busy year for SG with a numbers of drivers - fries, loyalty (just launched, a drag at first before redemptions pick up, thus a key swing factor), seasonal items, more IK, another COO change, collabs, and more - which for now, are not enough to offset customer softness.
Guidance RevisionApril comp was meaningfully below expectations, leading to downwardly revised guidance.
Urban Lunch Business WeaknessSweetgreen experienced a decline in sales due to weakness in the urban lunch business, where a significant portion of its sales occur.