Sweetgreen $SG drops 15% after 2026 same-store guide cut to -8%

Sweetgreen $SG fell more than 15% in extended trading after cutting its 2026 outlook because consumer demand for fresh prepared foods weakened during the multistate cyclosporiasis outbreak. The move cleared the Tier-1 threshold because the single-stock reaction exceeded 8% and the catalyst was a company guidance cut with concrete numbers.

In its SEC-filed Q2 release, Sweetgreen reported revenue of $192.7 million, up 3.8% from the prior year. Same-store sales were down 6.2%, reflecting a 2.0% decrease in traffic and a 4.2% decrease in product mix. Restaurant-level profit fell to $25.2 million from $35.1 million, and restaurant-level margin narrowed to 13.1% from 18.9%.

The income statement also showed weaker profitability. Net loss widened to $26.3 million from $23.2 million, and adjusted EBITDA moved to a $0.2 million loss from a $6.4 million profit a year earlier. Sweetgreen opened 2 net new restaurants in the quarter, compared with 9 in the year-earlier period.

The guidance cut was the market-moving line. Sweetgreen now expects about 13 net new restaurant openings in fiscal 2026, with roughly half featuring Infinite Kitchen. It guided same-store sales to a decline of 8.0%-7.0%, restaurant-level profit margin to 10.5%-11.0%, and adjusted EBITDA to a loss of $27.0 million-$23.0 million. CNBC reported that Sweetgreen has not been implicated in the outbreak, but that the broader consumer reaction to fresh produce still hit sales.

The next checks are whether traffic stabilizes after the outbreak concern fades, whether restaurant-level margin can move back above 13.1%, and whether the 2026 adjusted EBITDA loss stays inside the $27.0 million-$23.0 million range.

Not investment advice. Verify all figures with primary sources before acting.