Sweetgreen, Inc. announced its financial results for the second fiscal quarter ended June 29, 2025, reporting total revenue of $185.6 million, which was flat year-over-year. The company reported a loss of $0.20 per share, missing analyst expectations for a loss of $0.12 per share.
Same-store sales dropped 7.6% during the quarter, a significant underperformance compared to a 9.3% increase in the same quarter a year earlier. This decline was attributed to a more cautious consumer environment, tariff headwinds, and internal challenges.
Management drastically cut its full-year 2025 outlook for the second consecutive quarter. Sweetgreen now expects revenue between $700 million and $715 million, down from its May prediction of $740 million to $760 million. Full-year same-store sales are projected to decline between 4% and 6%, a significant downgrade from the previous 'approximately flat' outlook.
The restaurant-level profit margin for 2025 is now expected to be 200 basis points lower than the May outlook, including a 40 basis-point impact from tariffs. CEO Jonathan Neman described the quarter as 'really, really rough,' highlighting that the transition to the new SG Rewards loyalty program generated a 250 basis-point headwind to Q2 same-store sales.
Operational deficiencies were also noted, with only one-third of restaurants performing at or above standards. The company plans to address these issues through its new Chief Operating Officer, Jason Cochran, and the launch of 'Project One Best Way,' focused on improving speed, food standards, and portion sizes.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.