Sweetgreen stock plummets after Q2 earnings and guidance disappointments.

Sweetgreen, a restaurant chain, saw its stock price slide to below $10 for the first time in over 20 months after a disappointing Q2 earnings report and a sharp cut in guidance. The company's full-year guidance was also lowered, causing investors to lose confidence in the stock. The stock price decline is a significant setback for the company, which has been struggling to regain momentum after a tumultuous 2022.

Sweetgreen Inc. (NYSE: SG) saw its stock price plummet to below $10 for the first time in over 20 months following a disappointing Q2 earnings report. The casual salad chain missed Wall Street's revenue expectations, posting flat year-on-year sales of $185.6 million [1]. The company's full-year revenue guidance was also lowered, further dampening investor confidence. Sweetgreen's stock price dropped by 23.3% to $9.70 immediately after the earnings announcement [1].

Key highlights from Sweetgreen's Q2 report include:

- Revenue: $185.6 million, missing analyst estimates of $191.8 million by 3.3% [1].
- EPS (GAAP): -$0.20, significantly below analyst expectations of -$0.12 [1].
- Same-Store Sales: Fell by 7.6% year on year [1].
- Full-Year Revenue Guidance: Reduced to $707.5 million at the midpoint, down from $750 million [1].
- Operating Margin: -14.2%, down from -8.8% in the same quarter last year [1].

The company's stock has declined over 60% year-to-date and currently trades near its 52-week low of $11.84 [2]. Sweetgreen's market capitalization stands at $1.49 billion [2]. Despite the setbacks, the company plans to open at least 40 new restaurants in 2025 and aims for 1,000 domestic locations in the long term [2].

During the earnings call, CEO Jonathan Neiman expressed dissatisfaction with the current results and emphasized a focus on operational excellence and quality food standards. CFO Mitch Reback highlighted the company's long-term margin expansion goals [2].

References:

[1] https://finance.yahoo.com/news/sweetgreen-nyse-sg-misses-q2-212129204.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-sweetgreen-q2-2025-sees-stock-dip-after-earnings-miss-93CH-4179974