Sweetgreen Shares Plummet 23% on $320M Volume in Historic Single-Day Drop

Sweetgreen (SG) shares plummeted 23.06% on August 8, 2025, with a trading volume of $320 million, marking the largest single-day decline in its history. The drop followed a weak earnings report revealing a 7.6% quarterly decline in same-store sales and a broader-than-expected Q2 loss of $0.15 per share. Management attributed the underperformance to shifting consumer spending habits, particularly reduced demand for premium-priced salads, and weaker performance in Northeast locations. The company announced strategic adjustments, including increasing tofu and chicken portion sizes by 25% and discontinuing Ripple Fries to simplify operations and enhance perceived value.

CEO Jonathan Neman acknowledged the challenges, stating the changes aim to boost customer satisfaction while offsetting costs through efficiency measures in general and administrative expenses. However, analysts remain divided. TD Cowen’s Andrew Charles expressed skepticism about the efficacy of these moves amid “severe deterioration in trends,” while UBS’s Dennis Geiger highlighted long-term potential in store development and automation. The stock has fallen nearly 80% from its 52-week high and 70% year-to-date, reflecting investor concerns over execution risks and market saturation.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 yielded a 166.71% return, outperforming the benchmark by 137.53%. The results underscore the influence of liquidity concentration in short-term performance, particularly in volatile markets, where high-volume stocks like Sweetgreen can experience amplified price movements due to trading activity and investor sentiment.