Why Sweetgreen Stock Was Sinking Again

MrDecoder · 2026-02-28T00:12:25+00:00

Sweetgreen's stock plummeted 10.5% after reporting a dismal quarter, with a notable 11.5% drop in comparable sales and a widened net loss of $49.7 million. The company faces challenges as it transitions its loyalty program and seeks to improve customer value.

MrDecoder

2026-02-28 00:12:25

Abstract generation in progress

Shares of **Sweetgreen **(SG 11.89%) were taking a dive today after the fast-casual salad chain posted another disappointing quarter, showing the business continues to head in the wrong direction.

Revenue fell on a double-digit decline in comparable sales, and its net loss widened again.

As of 1:50 p.m. ET, the stock was down 10.5%.

Image source: Sweetgreen.

Sweetgreen goes from bad to worse

Sweetgreen capped off a disastrous year with its worst quarter yet.

Comparable sales plunged 11.5%, lapping a 4.4% increase in the quarter a year ago, and revenue fell 3.5% to $155.2 million, below expectations at $158.8 million.

Restaurant-level profit fell from $28 million to $16.2 million, and its net loss widened from $29 million to $49.7 million, or $0.42 per share, compared to $0.25 in the quarter a year ago. Wall Street had also expected a per-share loss of $0.25.

Management noted continued headwinds in the transition away from its Sweetpass+ loyalty program and a challenging spending environment for consumers.

It also acknowledged that it has to do better. CEO Jonathan Neman said, “We are moving with urgency through the ‘Sweet Growth Transformation Plan’ to strengthen the core of the business.” The company is also testing wraps starting at $10.95 in select markets, and plans to expand them nationwide if they perform well.

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NYSE: SG

Sweetgreen

Today’s Change

(-11.89%) $-0.73

Current Price

$5.41

Key Data Points

Market Cap

$727M

Day’s Range

$5.25 - $6.29

52wk Range

$5.00 - $27.15

Volume

230K

Avg Vol

4.2M

Gross Margin

6.51%

Can Sweetgreen bounce back?

The company’s 2026 guidance didn’t inspire much confidence. It sees comparable sales declining 2%-4%, and expects restaurant-level profit margin of 14.2%-14.7%, below the 15.2% it recorded in 2025. It does see adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improving from a loss of $11 million to a profit of $1 million to $6 million, though that may just reflect scaled-back store openings, as it forecast 15 only new stores versus 35 in 2025.

At this point, the fast-casual company needs some kind of catalyst to turn things around. Keep an eye on the performance of the new wraps as the company has gotten a reputation for being overpriced and needs to work harder to deliver value for its customers.

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