Key Highlights

• SG shares fell approximately 8.09 percent to $5.40, a decline of $0.48 from a prior close of $5.87.

• Second quarter revenue was $192.7 million, down 4 percent year over year, with a wider-than-expected loss of $0.22 per share versus $0.20 expected.

• Comparable restaurant sales declined 6.2 percent, driven by a 4.2 percent decline in transactions and 4.2 percent decline in mix/price increase.

• The company cut full-year 2026 guidance, with comparable restaurant sales now expected to decline 7 to 9 percent.

Guidance Cut Triggers Analyst Reaction

Sweetgreen, Inc. (NYSE:SG), a Los Angeles-based mission-driven fast-casual restaurant chain serving chef-crafted salads, grain bowls, and warm bowls made from fresh, seasonal, and locally sourced ingredients, remained sharply lower, closing down 8.09 percent at $5.40 after tumbling as much as 17 percent following Thursday's disappointing second quarter report. Second quarter revenue was $192.7 million, down 4 percent year over year, with restaurant level profit margin declining to 13.7 percent versus 18.9 percent a year prior, driven by sequential improvement in transaction comps through the quarter (down 11.2 percent in Q1) though flat in July, and operational execution improvements, but momentum was disrupted in mid-July by a Cyclospora outbreak unrelated to Sweetgreen ingredients, causing a roughly 600 basis point impact to July comps.

The guidance cut triggered a wave of price-target reductions from multiple firms, though most maintained Hold or Outperform ratings, with one noting wraps underperformed expectations and 2027 unit growth guidance is coming down below Street estimates.

Updated Guidance and Menu Innovation

Updated FY2026 guidance: full-year comparable restaurant sales now expected to decline 7 to 9 percent, restaurant level profit margin guided to 10.5 to 11 percent, and adjusted EBITDA guided to a loss of $23 to $27 million, with disruption related impact of 600-700 basis points to comps, 100-150 basis points of restaurant margin, and $7 to 10 million on adjusted EBITDA for the year.

The company is testing a redesigned Create Your Own menu in select markets, targeting a full rollout by year-end, and plans to continue disciplined, slower new unit growth (similar to this year's pace) while refining prototype design/costs under a new Chief Development Officer, aiming for a return to $3 million AUVs and margin expansion over time.

Conclusion

In summary, Sweetgreen (NYSE:SG) shares fell approximately 8.09 percent to $5.40 at last closing, after a disappointing second quarter report and a guidance cut that triggered a wave of price-target reductions. These are the verified facts from the earnings release and market data. Whether the decline stabilizes may depend on menu innovation efforts and how the company navigates comparable sales trends through the remainder of the year.