People walk in a Sweetgreen restaurant in Manhattan.
Jeenah Moon | Washington Post | Getty images
Sweetgreen The Salad series recorded its 2025 approach to its loyal program, weak consumer spirit, tariff headwind and stores challenges for the second consecutive quarter, declining over 25% on Friday after a cut in 2025 outlooks of the salad chain.
For 2025 throughout the year, Sweetgreen now expects revenue between $ 700 million and $ 715 million, from its prediction from $ 740 million to $ 760 million and below $ 760 million to $ 780 million from its February point of view.
It also projects the sale of negative equal-store for the whole year, which estimates the decline between 4% and 6% below its original perspective of solo-making development. The restaurant-level profit margin for 2025 is expected to decrease 200 basis points compared to Sweetgreen’s latest approach in May. This includes 40 base-point hits due to the effect of tariff.
On calling with analysts on Thursday, CEO Jonathan Neman stated that Sweetgreen had “actually, actually a thick quarter”.
He said that both external headwinds and internal functions played a role in the performance, which included a difficult comparison with the transition of our new loyalty program at a more cautious consumer environment starting in April, successful stake launch of last year and our new loyalty program at the beginning of the quarter. “
The company reported earnings and revenue miss in the second quarter, reporting a loss of 12-per cent versus a loss of 12-per cent versus 20 cents by the surveyed analysts. Revenue came in $ 186 million as compared to a $ 192 million LSEG estimate.
Same store sales decreased by 7.6% during the quarter, a large extent in the same quarter a year ago when the company reported an increase in equal-store sales of 9.3%. According to the Strikint, analysts were expecting a decline in the second quarter of 5.5%.
Officials said “Loyalty Headwind” played an important role in the results. Neman said that in a new program from Sweetgreen+ Subscription Program, SG rewards, in the second quarter of the company, produced 250 base-point headwinds for the sale of similar-store in the second quarter of the company. He said Sweetgreen saw the fall in revenue from Sweetgreen+ customers’ revenue from the small but high-existing corket, but said he believed that the effect would be temporary.
Moving forward, the company leaders said that they are focusing on improving customers’ satisfaction and operation in shops.
Neman told investors on Thursday that only one-third of the restaurant is performing or above the standards, while the remaining two-thirds “represent a meaningful opportunity for improvement.”
He said that the company is aiming to improve operations under the leadership of its new COO, Jason Kochran, and the launch of a new program called Project One Best Way focused on improving speed and food standards and enhancing the size of the part.
Consumer Bhavna has played a role in the company’s performance. Reback said that the pressure on consumer spending has been longer than expected.
“It is very clear that the consumer is not in a great place overall,” Neman said.
