After-hours trading on Tuesday saw a 10% decline in Sweetgreen shares after the salad company disclosed a larger-than-expected loss and decreased its full-year revenue forecast.
The business now expects its revenue for 2022 to be in the $480 million to $500 million range or less. It has decreased its sales outlook for the second straight quarter.
According to Sweetgreen, their same-store sales increased 6% in the third quarter completely due to menu price increases. In an effort to boost sales, the chain declared the opening of its first national dessert on Monday.

Executives at Sweetgreen claimed in August that sales for the business started to decline around Memorial Day. They gave a range of explanations for the slowdown, including summer travel, postponed returns to work, and an additional wave of Covid-19 patients.
In response to increasing inflation, other restaurant groups have noted a wider shift in consumer spending. Investors were informed by executives at Chipotle Mexican Grill and McDonald’s that higher-income patrons were spending more money at their eateries, while some lower-income patrons were dining out less frequently or choosing less expensive menu items.

A year ago, Sweetgreen reported a net loss of $30.1 million, or $1.58 per share, for the third quarter of its fiscal year. This year, it posted a net loss of $47.4 million, or 43 cents per share. Refinitiv surveyed Wall Street experts who predicted a loss of 37 cents per share.

In order to save money, Sweetgreen stated in August that company would relocate to a smaller office building and lay off 5% of the staff at its support centre. It spent $11.1 million before taxes in the third quarter on these restructuring charges. This sum includes the $600,000 it cost to give up potential restaurant locations in order to speed up development.

In contrast to projections of $129.4 million, net sales increased by 29% to $124 million. Additionally, the chain fell short of Wall Street’s projections for same-store sales growth.
As of Tuesday’s close, the stock had lost 45% of its value for the year, bringing its market worth to $1.9 billion.