Fast-casual salad chain Sweetgreen reported significant operational challenges in its latest quarter, with comparable sales declining 11.5% and revenue falling 3.5% below analyst expectations. The company's net losses expanded to $49.7 million, underscoring the financial pressures facing the restaurant operator amid softer consumer spending patterns and ongoing operational transitions.
Management attributed some of the weakness to disruptions from a loyalty program transition, while broader macroeconomic headwinds continued to weigh on customer demand. To address these challenges, the company has initiated a "Sweet Growth Transformation Plan" and begun testing new menu items including wraps, signaling an effort to diversify its offerings and reignite growth momentum.
Looking ahead, Sweetgreen's 2026 guidance projects further comparable sales declines of 2% to 4%, suggesting management expects continued pressure in the near term. The cautious outlook has done little to alleviate investor concerns about the company's path to profitability and its ability to compete effectively in the competitive fast-casual dining segment.