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Sweetgreen's Losses Widen Despite Price Hikes
27 Feb
Summary
- Sweetgreen reported a $49.7 million loss, exceeding expectations.
- Revenue and same-store sales declined despite a nearly 2% price increase.
- Traffic and mix saw a significant 13% drop, impacting overall sales.
Sweetgreen experienced a substantial financial setback, reporting a $49.7 million loss in the most recent fiscal period. This figure significantly missed analyst expectations and represents an increase from the previous year's loss. The salad chain's revenue saw a 3.5% decrease, alongside an 11.5% drop in same-store sales.
These declines are largely due to a 13% reduction in customer traffic and mix, a trend the company attributes to consumers becoming more discerning with their spending. Efforts to counter this, including menu price increases of nearly 2%, have not yet revitalized sales.
Looking ahead to fiscal year 2026, Sweetgreen anticipates a further 2% to 4% decline in same-store sales, a projection more pessimistic than analysts' forecasts. The company plans to open 15 new restaurants as part of its ongoing transformation strategy, focusing on operational improvements and culinary standards.
