Sweetgreen Stock Plunges 25% on Weak Earnings and Declining Comparable Sales

Sweetgreen shares cratered 25.6% after the salad chain reported disappointing quarterly results. Comparable sales fell 7.6%, reversing prior growth, while revenue growth stalled at 0.5% to $185.6 million—missing analyst estimates. The company's GAAP loss per share widened significantly to $0.20, far worse than the projected $0.05 loss.

CEO Jonathan Neman acknowledged the challenges but expressed confidence in a second-half 2025 rebound, citing early traction with its revamped loyalty program and summer menu offerings. Macroeconomic pressures and tough year-over-year comparisons compounded the struggles.

The dramatic selloff reflects evaporating investor patience for what was once considered a high-growth restaurant concept. With adjusted EBITDA halving to $6.4 million, Sweetgreen now faces mounting skepticism about its path to profitability.