Sweetgreen reported second quarter 2026 results that missed analyst expectations on both the top and bottom lines. While total revenue grew 3.8% year-over-year to $192.7 million due to new restaurant openings, the company saw a significant 6.2% contraction in same-store sales. Management lowered its full-year 2026 outlook, citing reduced consumer demand following a cyclosporiasis outbreak that began in mid-July.
Key Highlights
- Same-store sales declined 6.2%, driven by a 2.0% decrease in foot traffic and a 4.2% drop in product mix attributed to heavy promotional activity and a shift toward wraps.
- Restaurant-level profit margin contracted by 600 basis points to 13.1%, pressured by higher ingredient usage and investments in larger protein portions.
- Net loss widened to $26.3 million, or -$0.22 per share, compared to a loss of $23.2 million in the prior year period.
- The company cut its fiscal year 2026 guidance, now expecting same-store sales to decline between 7.0% and 8.0% and Adjusted EBITDA to range from -$27 million to -$23 million.