Sweetgreen's Sales Decline Sparks Concerns over Q2 Performance

Sweetgreen's stock price fell significantly due to concerns over its Q2 sales trends. According to Bloomberg Second Measure data, credit card sales declined in Q2. This negative data came after a downgrade from TD Cowen last week. The decline in sales raises concerns about the company's performance and future prospects.

Sweetgreen (NYSE:SG) faced a significant stock price decline on July 1, 2025, due to concerns over its second-quarter (Q2) sales trends. According to Bloomberg Second Measure data, credit card sales for the period showed a decline, which followed closely after TD Cowen's downgrade of Sweetgreen from a "buy" to a "hold" rating last week [1].

The negative data from Bloomberg Second Measure, combined with the downgrade from TD Cowen, has raised concerns about Sweetgreen's performance and future prospects. The analyst firm TD Cowen cited rising competition in urban areas and risks to the salad chain's performance this year and next as reasons for the downgrade [1].

Sweetgreen's stock price fell by 8.9% at 11:40 a.m. on July 1, 2025, trading close to its 2025 lows. The company's short interest, which stands at 14.7% of the total float, is the 7th highest in the restaurant sector [1]. Despite the negative news, Sweetgreen is expected to report its Q2 earnings during the first week of August, which could provide more clarity on its financial performance.

The broader market context also played a role in Sweetgreen's stock performance. Tesla (TSLA) shed 6% due to President Donald Trump's comments on potential cost-cutting measures for the electric vehicle maker [2]. Meanwhile, other companies like AeroVironment and Progress Software also experienced significant price movements due to their respective news and earnings reports [2].

As investors await Sweetgreen's Q2 earnings report, the market will closely watch for any signs of recovery or further decline in the company's performance. The company's ability to navigate the challenges posed by rising competition and maintain its long-term prospects will be key factors in determining its future stock price trajectory.

References:
[1] https://seekingalpha.com/news/4465633-sweetgreen-slides-amid-concerns-over-q2-sales-trends
[2] https://www.cnbc.com/2025/07/01/stocks-making-the-biggest-moves-premarket-tsla-sg-avav-has-and-more.html