People pass in front of a Sweetgreen restaurant in Manhattan.
Jeenah Moon | The Washington Post | Getty images
Sweetgreen Actions dropped by more than 25% on Friday after the salad chain reduced its 2025 prospects for the second consecutive quarter, citing problems with its loyalty program, the weak feeling of consumers, the price -contrary winds and the challenges in store.
For the full year 2025, Sweetgreen now provides turnover between $ 700 million and $ 715 million, down from its May 740 million prediction to $ 760 million and its February $ 760 million prospects at $ 780 million.
It also projects sales with negative comparable stores for the whole year, estimating a decrease between 4% and 6%, down compared to its prospects for growth in growth. The beneficiary margin at the restaurant for 2025 should be 200 basis points lower than those of the latest Sweetgreen prospects in May. This includes a 40 -point stroke due to the impact of prices.
During a call on Thursday with analysts, CEO Jonathan Neman said that Sweetgreen had a “really, really difficult neighborhood”.
He said that external winds and internal actions have played a role in performance, including “a more prudent consumption environment from April, hanging a difficult comparison with the launch of successful steak and the transition of our new loyalty program at the start of the quarter”.
The company declared a profit and income from the second quarter, reporting a loss of 20 cents per share against a loss of 12 cents expected by the analysts interviewed by LSEG. Revenues have reached $ 186 million compared to the LSEG estimate of $ 192 million.
Sales with comparable stores dropped 7.6% during the quarter, considerably underperforming the same quarter a year earlier when the company said an increase in sales at 9.3% comparable stores. Analysts expected a decrease in the second quarter of 5.5%, according to Streetaccount.
The leaders said that the “loyalty -contrary winds” had played a key role in the results. Neman declared that the transition from the Sweetgreen + subscription program to a new program, SG Rewards, has generated a 250 -point -in -base wind to sales of comparable stores in the company’s second quarter. He said Sweetgreen had seen a fall in income from this little but high frequency of Sweetgreen +customers, but he said that he thought the impact would be temporary.
In the future, business leaders said they focused on improving customer satisfaction and store operations.
Neman told investors on Thursday that only a third of restaurants behave to standards or above, while remaining two thirds “represent a significant opportunity for improvement”.
He said that the company was aimed at improving operations thanks to the management of its new COO, Jason Cochran, and the launch of a new program called Project One Best Way, focused on improving speed and food standards and increased portion size.
Consumers’ feeling has played a role in business performance. REBACK said the pressure on consumption spending has persisted longer than expected.
“It is quite obvious that the consumer is not in an ideal place overall,” added Neman.