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LOS ANGELES--(BUSINESS WIRE)--Sweetgreen today announced the appointment of John Karangis as Executive Chef and Senior Vice President, Culinary. In his new role, Karangis will lead sweetgreen's culinary strategy, overseeing menu innovation, strengthening the core menu and bringing new chef-crafted offerings from the test kitchen to restaurants nationwide. Karangis brings extensive culinary experience spanning fine dining, hospitality and global restaurant brands. Most recently, he served as Exe.

If you love ordering salads from Sweetgreen (SG +1.39%) and see that its share price is just $10.10, you might start thinking about investing in it. I'd caution you to think twice, though, for multiple reasons. Here's why I am not planning to invest in it, despite enjoying its Harvest Bowls.

My main reason is this: The company is struggling. It did post a 3.8% increase in revenue in its second quarter, to $197 million, but sales at locations that have been open more than a year dropped by 6.2%. It posted an operating loss of $27.4 million, a bit greater than the year-before loss of $26.4 million. It opened two new restaurants, net, versus nine in the year-ago quarter.

Image source: The Motley Fool.

Is the company doomed? Not necessarily. It has been struggling, with issues such as inflation making it hard to keep costs and prices down, and also making it hard for many would-be customers to justify buying somewhat costly salads. The cyclospora outbreak didn't help, either.

$10.18+$0.14 (+1.39%)

NYSE · As of 4:00 PM ET 10/19/26

But management said in the quarterly report that:

Our results are not where they need to be, but the progress we saw in the second quarter reinforces our confidence that the plan is working... Guests are responding to wraps, restaurant execution is improving, and transactions strengthened throughout the quarter. We remain focused on ... bringing more guests into Sweetgreen, and rebuilding restaurant-level profitability.

It's promising that the company is working on turning itself around, but I'd rather wait for it to become profitable. There are, after all, plenty of other exciting portfolio candidates.

Whether you're intrigued by Sweetgreen or not, it's important to understand that a seemingly "cheap" stock price doesn't mean a stock is a good buy. Sweetgreen, for example, is not profitable at the moment. But PepsiCo, recently priced at $131 per share, is hugely profitable and seemingly undervalued, with a recent price-to-earnings (P/E) ratio of 16 and a fat dividend yield of 4.6%. A stock's share price alone doesn't really tell you much.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.

Sweetgreen (NYSE: SG - Get Free Report) and NextTrip (NASDAQ: NTRP - Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation. Valuation and Earnings This table compares Sweetgreen and

The chain is counting on lower-priced wraps and pricing transparency to attract diners.

In the latest close session, Sweetgreen, Inc. (SG - Free Report) was up +2.28% at $9.85. This change outpaced the S&P 500's 0.06% loss on the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.44%.

Coming into today, shares of the company had gained 35.63% in the past month. In that same time, the Retail-Wholesale sector gained 1.66%, while the S&P 500 gained 2.36%.

The upcoming earnings release of Sweetgreen, Inc. will be of great interest to investors. The company's earnings report is expected on November 5, 2026. In that report, analysts expect Sweetgreen, Inc. to post earnings of -$0.28 per share. This would mark a year-over-year decline of 3.7%. Simultaneously, our latest consensus estimate expects the revenue to be $168.56 million, showing a 2.22% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.34 per share and a revenue of $682.69 million, signifying shifts of +129.82% and +0.47%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sweetgreen, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sweetgreen, Inc. presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Sweetgreen, Inc. is presently trading at a Forward P/E ratio of 28.32. This denotes a premium relative to the industry average Forward P/E of 19.88.

It is also worth noting that SG currently has a PEG ratio of 2.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.77.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 102, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) will release financial results for the third quarter of 2026 after the market close on Thursday, November 5, 2026. On that day, the company will host a webcast at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the company's business and financial results.A live webcast of the company's earnings call will be available on the investor relations section of the company's website at https://investor.sweetgreen.com/. An archived web.

In the latest close session, Sweetgreen, Inc. (SG - Free Report) was up +1.49% at $8.87. The stock exceeded the S&P 500, which registered a loss of 0.25% for the day. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq gained 0.24%.

The company's shares have seen an increase of 35.08% over the last month, surpassing the Retail-Wholesale sector's loss of 6.54% and the S&P 500's loss of 0.42%.

Market participants will be closely following the financial results of Sweetgreen, Inc. in its upcoming release. It is anticipated that the company will report an EPS of -$0.28, marking a 3.7% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $168.56 million, down 2.22% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.34 per share and a revenue of $682.69 million, representing changes of +129.82% and +0.47%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Sweetgreen, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Currently, Sweetgreen, Inc. is carrying a Zacks Rank of #4 (Sell).

Digging into valuation, Sweetgreen, Inc. currently has a Forward P/E ratio of 25.9. Its industry sports an average Forward P/E of 20.7, so one might conclude that Sweetgreen, Inc. is trading at a premium comparatively.

Also, we should mention that SG has a PEG ratio of 2.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SG's industry had an average PEG ratio of 1.76 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 172, finds itself in the bottom 31% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

In the latest close session, Sweetgreen, Inc. (SG - Free Report) was up +2.11% at $7.25. The stock's change was more than the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.

Prior to today's trading, shares of the company had gained 13.06% outpaced the Retail-Wholesale sector's loss of 7.24% and the S&P 500's loss of 0.82%.

The upcoming earnings release of Sweetgreen, Inc. will be of great interest to investors. The company is predicted to post an EPS of -$0.28, indicating a 3.7% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $169.57 million, indicating a 1.64% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.34 per share and a revenue of $683.84 million, representing changes of +129.82% and +0.64%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sweetgreen, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.58% higher. At present, Sweetgreen, Inc. boasts a Zacks Rank of #4 (Sell).

Looking at its valuation, Sweetgreen, Inc. is holding a Forward P/E ratio of 21.04. This denotes a discount relative to the industry average Forward P/E of 21.53.

It's also important to note that SG currently trades at a PEG ratio of 1.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.77.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--sweetgreen, the mission-driven restaurant brand serving healthy food at scale, is bringing its first-ever Jacksonville location to 4624 Town Crossing Dr. in St. Johns Town Center on September 15. The restaurant marks sweetgreen's first location in Northeast Florida, with opening-day celebrations featuring local partnerships, special offerings and a chance to win a custom surfboard. Open daily from 10 a.m. to 10 p.m., the 2,560-square-foot restaurant will off.

[url="]sweetgreen[/url], the mission-driven restaurant brand serving healthy food at scale, will open its first Utah restaurant on September 8 at 2188 Highland

HONG KONG, Aug 19, 2026 - (ACN Newswire) - Everest Medicines (01952.HK) announced its interim results for the six months ended June 30, 2026. Everest delivered strong growth and reached an important profitability milestone in the first half of 2026. Total revenue increased 157% year-on-year to RMB 1.148 billion, driven by continued commercial momentum across the company's portfolio. Gross margin excluding non-cash items reached 73.7%, while operating expenses as a percentage of revenue decreased by 64.0 percentage points year-on-year, reflecting increasing operating leverage and execution efficiency.

From the first-half results, the company's growth drivers are broadening beyond the commercialization of core products to include portfolio expansion, monetization of innovative assets, and global expansion.

In the first half of 2026, the company achieved non-IFRS net profit of RMB 97.23 million, while IFRS net loss narrowed by 98% year-on-year. Everest ended the period with RMB 1.859 billion in cash. Following the reporting period, the company received approximately RMB 770 million in July from the upfront payment under its global licensing and collaboration agreement for civorebrutinib, further strengthening its financial position and capacity to invest in future growth.

Mr. Yifang Wu, Chairman of the Board of Everest Medicines, said: 'Everest Medicines has entered a new phase of development as an innovation-driven, integrated biopharmaceutical company. Guided by our 2030 Strategy, we are strengthening our capabilities in innovation, commercialization, and global development, accelerating the realization of global value and laying a stronger foundation for sustainable, high-quality growth.'

During the period, the company achieved profitability, while expanding its innovative pipeline and advancing its R&D programs. Through continued efforts to strengthen its BD capabilities, the company is developing a model that combines in-licensed and internally developed early-stage assets, exemplified by civorebrutinib (also known as EVER001), with internal incubation and development creating opportunities to out-license innovative assets and realize their value. At the same time, the company is bringing in high-quality mid- to late-stage assets, exemplified by NEFECON(R), while continuing to build its commercialization capabilities and generate further opportunities for BD partnerships. These efforts are enhancing the efficiency of innovation resource allocation and accelerating the translation of innovation into clinical and commercial value.

Everest's marketed portfolio continued to gain momentum

NEFECON(R) maintained strong sales momentum. In the first half of 2026, sales revenue from NEFECON(R) reached RMB 889 million, with net sales increasing 94% year-on-year. Through deeper penetration across key hospitals, broader market expansion, enhanced physician and patient education, and continued generation of real-world evidence, Everest is supporting broader adoption of treatment strategies focused on addressing underlying causes, early intervention, and long-term management. Following approval, VELSIPITY(R) moved rapidly into commercialization, with local manufacturing progressing. XERAVA(R) delivered steady hospital sales growth, while local manufacturing advanced as planned. The company also reached an understanding with Hainan Herui Pharmaceutical Co., Ltd. regarding certain NEFECON(R)-related patent matters and entered into a commercialization collaboration for budesonide enteric capsules, further broadening treatment options for patients.

Meanwhile, commercialization services for Hasten Biopharmaceuticals continued to contribute to revenue growth. Services for mature products under the CSO arrangement commenced in March 2026, generating RMB 145 million in service revenue and RMB 28 million in commercialization profit in the first half of the year.

Mr. Rogers Yongqing Luo, Chief Executive Officer of Everest Medicines, said: 'In the first half of 2026, the company continued to execute its strategy and accelerate the translation of innovation into clinical and commercial value. Solid progress across commercialization, BD, in-house R&D, and global expansion further strengthened our foundation for sustainable growth and our ability to bring innovative therapies to patients.

Our BD strategy is building a diversified portfolio of future growth drivers through global partnerships for internally developed assets and selective in-licensing of differentiated innovative assets, while our in-house R&D continues to generate clinical progress. With the establishment of a pan-Asia-Pacific commercialization platform, we are also extending our proven capabilities from China into other Asian markets.'

EVER001 global licensing deal expected to accelerate overseas development

In June, the company entered into an exclusive licensing and collaboration agreement with Travere Therapeutics, Inc. ( TVTX) for the development and commercialization of civorebrutinib (also known as EVER001) in all markets outside China and certain countries in East and Southeast Asia. The deal has a total potential value of up to $1.1425 billion, including an upfront payment of $112.5 million and up to approximately $1.03 billion in additional cash payments tied to specified clinical development, regulatory and commercial milestones across up to five indications. Travere will also pay tiered royalties on future sales in its licensed territories, ranging from high single-digit to double-digit percentages based on annual net sales thresholds.

CICC believes the partnership is expected to accelerate the global clinical development and commercialization of EVER001 and could advance its development in membranous nephropathy. BOCOM International is positive on EVER001's overseas market potential and its development opportunities across additional indications. EVER001 achieved positive 52-week Phase 1b/2a clinical results, and a Phase 2 basket trial has been initiated in China to further evaluate its potential in autoimmune kidney diseases, including FSGS, MCD, and IgAN.

BD expansion further strengthens the product pipeline

The company continued to selectively introduce mid- to late-stage assets with strong commercial potential. MT1013, DMX-200, and Bejescin(R) strengthened its nephrology and autoimmune portfolio; CARDAMYST(R) and Sumecigrel (formerly known as Vicagrel) further expanded its cardiovascular portfolio; and LNZ100, together with VIS-101, enhanced its ophthalmology portfolio.

With multiple assets moving through key regulatory and commercialization milestones, the company is building a diversified portfolio of future growth drivers. CARDAMYST(R) is expected to receive approval in the third quarter of 2026, LEROCHOL(R) and LNZ100 are expected to receive approval in 2027, and MT1013 is expected to receive approval in 2028.

In-house R&D and pan-Asia-Pacific expansion advance

The company's in-house R&D also translated into clinical progress. The company's proprietary AI+mRNA platform also advanced, with its personalized mRNA cancer vaccine EVM16 achieving its first-in-human clinical data readout and planned to enter an investigator-initiated Phase 1b study in the fourth quarter of 2026. EVM18, the company's in vivo CAR-T therapy, has initiated IIT studies across multiple autoimmune diseases and is advancing toward global IND filings.

The acquisition of Hasten Biopharmaceuticals (SG) Pte. Ltd. further strengthened the company's global commercialization capabilities and established a pan-Asia-Pacific commercialization platform. The platform provides a foundation for scaling the company's proven commercialization capabilities from China across Asian markets, supporting the regional expansion of both existing and future products.

Meanwhile, CBC Group and the company's Directors have collectively purchased 5.163 million shares since December 2025, with the transactions totaling more than HK$172.5 million, demonstrating their confidence in the company's strategic direction and long-term prospects.

Overall, Everest Medicines is gradually developing a growth model built on the commercialization of core products, portfolio expansion through BD, a pipeline of innovative assets generated through in-house R&D, and international expansion through global partnerships and its pan-Asia-Pacific platform. As the company enters its new phase, the coordinated strengthening of its capabilities in innovation resource integration, commercialization, and global development is expected to provide an important foundation for future growth.

Source: Everest Medicines Limited

Copyright 2026 ACN Newswire . All rights reserved.

Sweetgreen Inc. CEO Jonathan Neman says the cyclospora outbreak had an impact on the business but the US FDA now says it's safe to eat iceberg lettuce again. He says Sweetgreen's supply chain isn't affected by the cyclospora outbreak and its restaurants don't serve that kind of lettuce.

MarketBeat Week in Review – 06/22 - 06/26Sweetgreen NYSE: SG reported second-quarter 2026 revenue of $192.7 million, up approximately 4% from a year earlier, while comparable restaurant sales declined 6.2%. The company said transaction trends improved sequentially during the quarter, reaching roughly flat comparable transactions in June, but momentum was disrupted in mid-July by consumer concerns surrounding a Cyclospora outbreak attributed to iceberg lettuce.

Chief Executive Officer Jonathan Neman said Sweetgreen does not use iceberg lettuce and has received no indication from suppliers or public health authorities that it is connected to the outbreak. Still, the company incorporated the expected impact of the headlines and a range of recovery scenarios into its revised full-year outlook.

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Investors Are Buying Into Sweetgreen Again—Should They?Sweetgreen also said it proactively removed jalapenos from an affected supplier following a separate voluntary recall announced the day before the call. Jalapenos are used only in two of its 15 dressings and represent a small part of sales, Neman said. The company has not included any potential effect from that matter in its outlook because it was too early to estimate.

Quarterly Sales and Profitability Comparable sales were pressured by a 2% decline in transactions and a 4.2% decline in product mix. Sweetgreen did not take a year-over-year menu price increase. Chief Financial Officer Jamie McConnell said the mix headwind reflected targeted promotions aimed at reengaging customers, the lower entry price of its wraps, and a comparison with higher side-item attachment following the prior-year introduction of Ripple Fries, which were discontinued in the third quarter of 2025.

Why Consumers Are Abandoning Chipotle, Sweetgreen and CavaThe company’s comparable transaction trend improved from an 11.2% decline in the first quarter to declines of about 3% in April and May, before reaching approximately flat in June. McConnell said wraps and early operational improvements supported that progress.

Restaurant-level profit was $25.2 million, or 13.1% of revenue, compared with an 18.9% margin a year earlier. Food, beverage and packaging costs rose about 210 basis points as a percentage of revenue, primarily due to higher ingredient usage, investments in portions and promotions. Labor and related expenses increased about 170 basis points, largely from sales deleverage and wage inflation.

Adjusted EBITDA was a loss of $200,000, compared with adjusted EBITDA of $6.4 million in the prior-year quarter. Sweetgreen ended the quarter with $142.6 million in cash and 287 restaurants, including 35 locations powered by its Infinite Kitchen technology.

Wraps Drive Frequency but Pressure Check Mix Management highlighted the national launch of wraps as a major element of its sales strategy. Neman said wraps maintained approximately 20% incidence, exceeding the company’s expectations, and generated about 200 basis points of comparable-sales uplift, including roughly 500 basis points of transaction improvement.

More than half of guests who ordered a wrap returned within 30 days, according to the company. Neman said wrap customers showed about a five-point increase in frequency, and wraps achieved the strongest return rate among Sweetgreen menu items, exceeding that of the Harvest Bowl.

However, the accessible price point created a check and product-mix headwind. McConnell said the gap between the transaction contribution of wraps and their reported comparable-sales contribution was “all primarily related to the lower check.” She added that wraps are priced with margins comparable to other menu items.

The company expects product mix to remain a low-single-digit headwind in the second half of 2026 as it reduces promotional activity and laps the prior-year Ripple Fries comparison. Management said it has been targeting promotions more narrowly toward lapsed guests rather than broadly extending offers to all loyalty members.

Operational, Marketing and Menu Initiatives Neman said Sweetgreen is prioritizing restaurant throughput, with an emphasis on ensuring locations are “Rush Ready Before Peak” periods. At its highest-volume restaurants, frontline peak entrees prepared per hour increased from the low 50s in May to the low 60s in June after the company introduced more structured weekly throughput accountability. On its busiest days, its best restaurants exceeded 250 entrees per hour, he said.

New regional general managers in New York and Seattle helped those markets return to positive transaction comparisons during the second quarter, according to Neman. The company is also redesigning training for head coaches, kitchen leads and team members, while testing restaurant-specific scheduling and deployment models intended to better align labor with peak demand.

On the menu, Sweetgreen plans to continue wrap innovation, launch seasonal Brussels sprouts in the fall and introduce a collaboration with a chef later this year. Management also said it sees an opportunity to expand dinner occasions through protein-forward plates. Neman cited the relaunched Hot Honey Chicken Plate, which he said produced a 30% improvement in its 30-day reorder rate.

Sweetgreen is testing a redesigned Create Your Own ordering and pricing experience that includes a protein in the base price and offers greater transparency around premium add-ons. The test began in Indianapolis, expanded to the Washington, D.C., market, and recently reached Southern California and Orange County. Neman said customer feedback has been encouraging, though it remains too early to assess transaction or frequency effects.

Updated 2026 Outlook Sweetgreen lowered its full-year outlook to reflect the Cyclospora-related disruption. The company now expects:

Comparable restaurant sales to decline between 8% and 7% for full-year 2026. Restaurant-level profit margin of 10.5% to 11%. Adjusted EBITDA loss of $27 million to $23 million. The outlook assumes a 600- to 700-basis-point comparable-sales impact in the third quarter from the disruption. The low end assumes a partial recovery in the fourth quarter, while the high end assumes a return to the pre-disruption trend at the start of the fourth quarter. Sweetgreen estimated that the disruption will reduce full-year comparable sales by 200 to 300 basis points, restaurant-level margin by 100 to 150 basis points, and adjusted EBITDA by $7 million to $10 million.

Looking ahead, Neman said Sweetgreen intends to maintain a conservative restaurant development pace, similar to or slower than its pace this year, while refining restaurant prototypes, construction costs, market selection and unit economics. The company opened four restaurants and closed two during the second quarter, and it entered Tennessee in July with an opening in Nashville’s Gulch neighborhood.

About Sweetgreen (NYSE:SG)Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company's menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Sweetgreen (SG -8.01%) delivered another disappointing earnings report Thursday after hours, and while there were some signs of progress in its turnaround efforts, it clearly wasn't enough as the stock was trading down double digits Friday morning before recouping some of those losses.

Image source: Sweetgreen.

Trends are improving, but the numbers are still declining The clearest picture from the report is that Sweetgreen's results are moving in the right direction, but not fast enough, and sales and profits are still declining.

Its same-store sales decline improved from 12.8% in the first quarter to 6.2% in the second quarter, but that's still a substantial slide. The nationwide roll-out of wraps in the second quarter drove some momentum for the company. Same-store traffic was down just 2% in the quarter, with a 4% decline in sales and mix due to promotions and comparatively lower prices for wraps than bowls.

The company also showed positive momentum in the quarter as same-store traffic was flat in June after falling by 3% in April and May. Management said that comps were positive for the first 10 days of July before the cyclospora outbreak. Based on those results, Sweetgreen seemed to be on its way to a strong second half. However, the turnaround hit a wall due to the cyclospora outbreak that started in mid-July. Even though Sweetgreen's products weren't directly affected by the outbreak, and the company doesn't even use iceberg lettuce, consumer fears led to a downturn in fresh salad consumption, which cut July comparable sales by an estimated 600 basis points.

As a result of the outbreak, management slashed its same-store sales guidance for the full year from a decline of 2%-4% to down 7%-8%, and it cut adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance to a loss of $23 million-$27 million from a profit of $1 million-$6 million.

Management said, "The pace and timing of recovery remain uncertain" due to the outbreak.

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There's still light at the end of the tunnel Management acknowledged that its results need to be better, but it pointed to a number of operational improvements that should deliver results in the coming quarters.

Throughput is improving as the company said that some restaurants are able to turn out 250 entrees in an hour, compared to just 50 in others, and it said that wrap adoption continues to grow in the markets where it first introduced it, New York and Seattle.

The company also introduced a modified create-your-own pricing structure in order to eliminate the sticker shock from customers building their own bowls, which should help solve the company's value perception challenges.

Overall, Sweetgreen still seems to have an appealing opportunity for recovery because its food has always been popular. Even after a year-and-a-half of declining sales, its average sales per restaurant is still $2.5 million, above the industry average in the fast food industry, and management believes it can get back to previous levels at $3 million, which would put it in line with Chipotle, the fast-casual leader.

The company's challenges have traditionally centered around value perception and throughput. Consumers like its food, but find it too expensive or say its lines are too long. Its experience with ripple fries are a good example of this. The company introduced the popular product last year, but it slowed down kitchen speeds too much, so it got rid of it after five months.

However, management is now clearly focused on tackling its pricing and throughput, and if its initiatives pay off, comparable sales should turn around. Management noted that it's trailed its peer group in price increases by 13 percentage points since 2019, so it's bringing prices more in line with peers, and it didn't raise prices in the last year.

Additionally, the positive comps in the first 10 days of July show the business was on the right track before the cyclospora outbreak.

Given that the business looks stronger than the stock slide or the report makes it look. With the cyclospora outbreak still continuing, investors will need to have patience, but the business seems like it's on the right track to recovery.

As the cyclosporiasis outbreak continues to rage across the United States, salad chains like Sweetgreen are preparing for a significant decline in sales.

Shares of Sweetgreen (SG -7.07%) were taking another post-earnings dive after the fast-casual salad chain missed second-quarter estimates and cut its guidance for the year due to the impact of the cyclospora outbreak, though the company has not been directly affected by it.

As of 9:58 a.m. ET, the stock was down 13.2% on the news.

Image source: Sweetgreen.

Sweetgreen shrinks again The fast-casual chain said same-store sales fell 6.2%, an improvement from the first quarter when they were down 12.8%, but that's still a substantial decline.

Revenue, boosted by new store openings, increased 3.8% to $192.7 million, which missed the consensus at $194.5 million.

Other key metrics were moving in the wrong direction as well. Restaurant-level profit margin fell from 18.9% to 13.1%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $6.4 million to a loss of $0.2 million.

On the bottom line, its generally accepted accounting (GAAP) loss per share expanded from $0.20 to $0.22, worse than the consensus at a loss of $0.12.

Despite the disappointing results, the trend in the quarter was positive. Same-store traffic was down just 2%, with the remaining decline due to price and sales mix, as the company rolled out wraps nationally in the quarter, which are cheaper than its bowls. Average transaction was also down due to discounting. It exited the quarter with flat same-store traffic in June.

"Our results are not where they need to be, but the progress we saw in the second quarter reinforces our confidence that the plan is working."

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Cyclospora adds another challenge As the improvement in traffic seems to indicate, Sweetgreen's performance was recovering, but the cyclospora outbreak, which began in mid-July, has turned customers off, even though Sweetgreen has not been directly affected by it and does not use iceberg lettuce, the implicated food item.

Management said, "The pace and timing of recovery remain uncertain," and said it lowered same-store sales by 600 basis points in July.

As a result, it cut its full-year same-store sales guidance to a decline of 7%-8% from a previous range of down 2%-4%. It also now expects an adjusted EBITDA loss of $23 milion-$27 million, compared to an earlier view of a profit of $1 million-$6 million.

The cyclospora setback is unfortunate, as the company seemed to be progressing before it. If investors can look past it, there still seems to be upside potential to the stock if it can return to positive comparable sales growth, though that will take time.

Between hellacious jalapeños and lamentable lettuce, salad-centric chains are getting slammed.

The latest victim is Sweetgreen, shares of which fell 10% Friday after the “slop bowl” chain said diners are avoiding its salads over fears of a cyclospora outbreak and removed jalapeño peppers from its restaurants due to a separate string of illnesses.

In its earnings report Thursday evening, Sweetgreen slashed its full-year forecast to an adjusted loss before interest, taxes, depreciation and amortization of $27 million to $23 million – much deeper than its previous estimate of $1 million to $6 million.

Sweetgreen shares fell 13% Friday after the “slop bowl” chain said diners are avoiding its salads over fears of a cyclospora outbreak. Getty Images The company also said it expects its annual same-store sales could shrink 7% to 8% this year, worse than a previous forecast of a 2% to 4% decline.

“The company’s updated outlook reflects reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis since mid-July,” Sweetgreen said in a statement.

“The pace and timing of recovery remain uncertain.”

For the second quarter ending June 28, Sweetgreen’s same-store sales fell 6.2% – its sixth straight decline.

The stock has plunged roughly 30% since mid-July as fearful diners avoid salads and fresh produce over fears of cyclospora, an explosive diarrhea-causing parasite – even though Sweetgreen and its products have not been linked to the outbreak.

But it seems Sweetgreen’s outbreak troubles are not yet behind the salad chain, as it revealed on Thursday that it removed jalapeños from its supply chain earlier this week amid a new salmonella outbreak.

In its earnings report Thursday evening, Sweetgreen slashed its full-year forecast. Boston Globe via Getty Images “In a separate and unrelated matter, a voluntary recall involving jalapeños was issued yesterday. As an added precaution, we proactively removed and discarded all jalapeño from the supplier in the affected areas,” CEO Jonathan Neman said during an earnings call Thursday.

“Jalapeños are used in only two of our 15 dressings and nowhere else on our menu, representing a very small portion of our sales mix. Because the communication was issued only yesterday, it is too early to reasonably estimate any potential impact,” Neman added.

The salmonella outbreak — which has sickened at least 345 people and led to 36 hospitalizations across the country — has been linked to fresh jalapenos from Mexico supplied by Coast Citrus Distributors.

Chipotle and QDOBA, a Mexican fast-casual restaurant chain, both received shipments from Coast Citrus and have since removed the impacted peppers from their stores, according to the FDA.

Meanwhile, shoppers are still avoiding restaurant menu items with lettuce and fresh produce at the grocery stores as they fear an outbreak of cyclosporiasis that has sickened at least 10,000, caused around another 10,000 suspected cases, hospitalized hundreds and led to two deaths, according to the CDC.

Sweetgreen has not been linked to the outbreak.

The FDA has tied the pestilential plague to iceberg lettuce from a Taylor Farms facility in Mexico. 

Sweetgreen said it removed jalapeño peppers from its restaurants due to a separate outbreak. Pixel-Shot – stock.adobe.com Taco Bell is the only major national restaurant chain to be linked to the outbreak, though it has already recalled the contaminated products and started to see sales bounce back. 

Many other restaurants have been hit by the dampened demand for lettuce.

Chipotle said its sales weakened about 2% around the time of the outbreak in the second half of July.

Earlier this week, Salad and Go filed for bankruptcy and announced plans to close all of its locations, saying the cyclospora outbreak “compounded” challenges it was already facing.

Cyclospora is a microscopic parasite that is typically transmitted when food or water is contaminated with infected feces.

It can cause an intestinal illness called cyclosporiasis, characterized by symptoms like watery diarrhea, loss of appetite, weight loss, stomach cramps or pain, bloating, gas, nausea and fatigue, according to food safety regulators. Some people show no symptoms after becoming infected.

Item 1 of 2 The Sweetgreen logo is displayed on a banner, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York City, U.S., November 18, 2021. REUTERS/Shannon Stapleton

[1/2]The Sweetgreen logo is displayed on a banner, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York City, U.S., November 18, 2021. REUTERS/Shannon... Purchase Licensing Rights, opens new tab Read more

CompaniesAug 7 (Reuters) - Shares of Sweetgreen (SG.N), opens new tab slumped 15% in premarket trading on Friday, a day after the salad chain slashed its annual same-store-sales projections as consumers grew wary of fresh produce ​amid a wide outbreak of cyclosporiasis in the U.S.

U.S. cyclosporiasis cases have climbed to ‌record levels this year with the current outbreak among the largest caused by foodborne illnesses in recent national history.

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The illness, which can be contracted by consuming food — typically raw fruits and vegetables — or water contaminated with ​feces, can cause diarrhea, nausea and other gastrointestinal symptoms.

The current outbreak, tied to ​recalled iceberg lettuce from central Mexico, has led some U.S. consumers to ⁠buy less lettuce and avoid some restaurant chains as the outbreak raises concerns about food safety.

While ​U.S. health authorities are continuing to look for sources of the illness beyond iceberg lettuce, Sweetgreen ​has reiterated that iceberg lettuce is not used anywhere on its menu and has no indication from health authorities or its suppliers that the company is linked to the outbreak.

The company now expects a 7% ​and 8% decline in annual same-store sales, compared with its previous forecast for a 2% ​to 4% drop. Sweetgreen said its guidance reflects reduced consumer demand since mid-July due to concerns surrounding the ‌outbreak.

For ⁠the second quarter ended June 28, same-store sales declined for a sixth straight quarter, falling 6.2%, but an improvement over the 7.6% decline a year earlier.

"Beginning in mid-July, heightened consumer concern related to the recent cyclospora headlines disrupted that momentum, and the impact to July comparable sales ​was about 600 basis ​points," CFO Jamie ⁠McConnell said on a post-earnings call on Thursday.

"While the timing of a full recovery is difficult to predict, we are confident in our ​ability to rebuild momentum," McConnell added.

Sweetgreen's shares have fallen nearly 30% since ​mid-July, when ⁠concerns about the outbreak began weighing on restaurant chains that rely heavily on fresh produce.

The company, along with other salad chains, has posted notices emphasizing that it does not use iceberg lettuce ⁠to reassure ​customers.

Sweetgreen, which has a market capitalization of roughly $700 million, ​separately said on Thursday it had also recalled some jalapenos earlier this week, as health authorities are also investigating a ​Salmonella outbreak linked to Mexican jalapeno peppers.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Sweetgreen, Inc. (SG - Free Report) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to a loss of $0.2 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -69.23%. A quarter ago, it was expected that this company would post a loss of $0.23 per share when it actually produced a loss of $0.27, delivering a surprise of -17.39%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

Sweetgreen, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $192.66 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $185.58 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Sweetgreen shares have lost about 9.8% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for Sweetgreen?While Sweetgreen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Sweetgreen was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.16 on $183.68 million in revenues for the coming quarter and $0.64 on $705.42 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Arcos Dorados (ARCO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13.

This restaurant owner is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +36.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Arcos Dorados' revenues are expected to be $1.28 billion, up 12.1% from the year-ago quarter.

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The company now expects same-store sales to drop between 7% and 8% due to lower demand from the multistate cyclosporiasis outbreak.

Sweetgreen (SG -8.22%) has served up a sour bowl for investors over the last year and a half.

The stock is down 86% from its peak in late 2024, amid a wide range of challenges. Discretionary spending on fast-casual food slowed broadly in response to ongoing inflation and the “K-shaped economy.” The company changed its loyalty program, leaving members of the earlier Sweetpass membership program miffed, and it sold Spyce, the unit that owns the Infinite Kitchen, though it retained the rights to use it.

As a result, with comparable sales falling by double digits in the first quarter, investors seem to have given up on what was once one of the most promising growth stories in the restaurant industry.

However, Sweetgreen appears to be on the verge of a turnaround. Here are a few reasons the stock could soar on its second-quarter earnings report, due after hours on Thursday.

Image source: The Motley Fool.

1. Wraps are resonatingSweetgreen launched wraps nationally in May, and the product seems to solve a number of problems for the company. First, it offers customers a cheaper option, helping to assuage concerns about a lack of value from its menu. Second, it matches competing handheld menu items from other fast-casual chains like Chipotle and Cava, offering an alternative to customers who don’t want a salad; third, it brings in customers interested in trying new menu items, keeping the menu fresh.

Anecdotally, the wraps seem to be receiving a favorable response, which is a good sign for both second-quarter results and the business’s long-term performance.

2. Same-store sales could turn positiveIn addition to the impact of wraps, there are other reasons to suspect that Sweetgreen could report positive comps, or at least something close to it.

The company is lapping the quarter in which it replaced its loyalty program, which led to some customer defections, so it’s facing easy comparisons with the quarter a year ago. Data from Placer.ai, a location intelligence company, showed that overall foot traffic rose 22.7% from the quarter a year ago, though that includes the impact of new stores.

Additionally, Chipotle reported its fastest comparable sales growth rate in six quarters in the second quarter, posting 2.2% same-store sales growth, a trend that could bode well for other fast-casual operators like Sweetgreen.

Finally, the company guided to a same-store sales decline of 2%-4% for the full year, implying that comparable sales are expected to be roughly flat after a 12.8% decline in the first quarter, so Q2 could be positive if results are better than expected.

3. The stock looks oversoldAfter falling nearly 90%, the stock seems to be priced as if the business is headed for extinction. In addition to the sell-off, 22% of the float is short, which could trigger a short squeeze and send the stock soaring if it delivers a strong quarter.

On a price-to-sales basis, the stock trades at a ratio just above 1, which looks like a great price for a company with Sweegreen’s growth potential.

Though its comparable sales have fallen sharply, the company still has average restaurant sales of $2.5 million, not far behind Chipotle, and it’s opening new stores. Sweetgreen is unprofitable, but if it can return to comparable sales growth in the coming quarter, that could change. Over the next few years, the stock could move a lot higher from its current price if the business returns to health.

It's an understatement to say Sweetgreen (SG +2.83%) has stumbled recently.

The fast-casual salad chain has plunged since it peaked in late 2024, down 86%. Almost everything that could go wrong for the salad slinger has.

Same-store sales have turned sharply negative as concerns about high food prices, a change to its loyalty program, and persistent inflation have all weighed on results. Additionally, the company surprised investors when it sold Spyce, the business containing the Infinite Kitchen, though it retained the right to use that technology, which helps automate food prep.

Showing how bad things have gotten for Sweetgreen, same-store sales fell 12.8% in the first quarter, and revenue was down 2.9% to $161.5 million, as the company continues to open new stores.

However, even as the stock has languished, there are signs that it could be turning the corner.

Image source: Sweetgreen.

Why Sweetgreen could be poised for a comeback Earlier this year, Sweetgreen introduced wraps as a lower-priced option to push back on complaints that its menu had gotten too expensive and to give customers a handheld option. The move rounds out its menu and, with bowls and wraps, gives it a similar offering to Chipotle and Cava, two top fast-casual chains.

According to some anecdotal observations and third-party data, the wraps appear to be driving a comeback. Placer.ai, a location intelligence platform that estimates foot traffic for national restaurants and retailers, found that Sweetgreen's same-store traffic turned positive in the second quarter after falling in every month since at least last July. Following an 8.4% decline in March, according to Placer, same-store visits were down 2.9% in April, then up 1% in May, and 3.9% in June.

Placer's data for the first quarter seemed to underestimate the decline in traffic, which was down 11.2%, so investors should take the numbers with a grain of salt, but the trend is clear. Store traffic dramatically improved in the second quarter, and that clearly bodes well for the business.

In addition to the tailwind from the wraps, Sweetgreen is also lapping a change in its loyalty program that turned off some customers, so comparable sales should benefit as that headwind rolls off.

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Why Sweetgreen could pop next month Sweetgreen is priced like a broken stock, but it still has promising growth ahead, and the last few quarters could prove to be a temporary setback. The stock trades at a price-to-sales ratio of just 1, and though it's not currently profitable, profits shouldn't be far away if it can get back to steady comparable sales growth. Sweetgreen's guidance calls for just that, and the Placer.ai data shows the company appears to be ahead of the curve.

If it can deliver positive comps in its second-quarter report on Aug. 6, or just report that it exited the quarter with positive comps, the stock could rip higher. After all, this is still a popular chain, with average sales per restaurant still exceeding $2.5 million.

Jeremy Bowman has positions in Cava Group, Chipotle Mexican Grill, and Sweetgreen. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Mr. Market didn't have much of an appetite for Sweetgreen (SG -0.66%) stock over the past few days. The salad-focused healthy cuisine restaurant chain operator fell out of favor due to increasingly stern warnings about the current outbreak of the cyclospora parasite, which has been linked to lettuce.

No cases have been reported at any Sweetgreen restaurant, but since it's a salad purveyor, investors were spooked anyway. According to data compiled by S&P Global Market Intelligence, the company's stock tumbled by almost 15% over the course of the trading week.

A widening outbreak The federal government's Centers for Disease Control and Prevention (CDC) issued its first Health Alert Network advisory last week. Since then, healthcare authorities have issued several updates indicating that cyclospora is spreading.

Image source: Getty Images.

The latest came on Friday, with the Food and Drug Administration (FDA) announcing that the outbreak, thought to originate in central Mexico, appears to have caused illnesses in nine states -- Illinois, Indiana, Kansas, Kentucky, Michigan, Ohio, Oklahoma, Pennsylvania, and West Virginia.

All told, based on findings from the CDC, the parasite has affected 1,947 people. Of these, 98 hospitalizations have been reported, although there have been no fatalities.

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Avoidance tactics While we're still some distance from a major, nationwide food healthcare emergency, the spread of cyclospora has been rapid, and caution is more than warranted. Diners will surely avoid restaurants like Sweetgreen, which in turn is going to affect the company's results. I think this stock has further to fall, so I'd avoid investing in it personally.

Sweetgreen (SG) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.