What Happened?

A number of stocks fell in the afternoon session after a surprisingly weak U.S. jobs report and renewed fears over international trade policy fueled concerns about a slowdown in consumer spending. 

The July 2025 jobs report revealed that hiring slowed dramatically, with the U.S. economy adding only 73,000 new jobs—the weakest gain in over two years. Furthermore, job numbers for May and June were revised significantly lower, suggesting the labor market is weaker than previously thought. This is a critical headwind for restaurants, as a shaky job market often leads consumers to cut back on discretionary spending like dining out. Compounding the issue, the announcement of new U.S. tariffs on trading partners has heightened fears of inflation and a broader economic slowdown, prompting investors to sell shares in consumer-facing sectors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Traditional Fast Food company Dutch Bros (NYSE: BROS) fell 3.8%. Is now the time to buy Dutch Bros? Access our full analysis report here, it’s free.
• Sit-Down Dining company Brinker International (NYSE: EAT) fell 3.3%. Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
• Modern Fast Food company Sweetgreen (NYSE: SG) fell 7.5%. Is now the time to buy Sweetgreen? Access our full analysis report here, it’s free.
• Sit-Down Dining company Kura Sushi (NASDAQ: KRUS) fell 3%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free.
• Sit-Down Dining company First Watch (NASDAQ: FWRG) fell 4.6%. Is now the time to buy First Watch? Access our full analysis report here, it’s free.

Zooming In On Sweetgreen (SG)

Sweetgreen’s shares are extremely volatile and have had 66 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 3.4% on the news that the company announced a new restaurant opening, continuing a trend of positive news. The fast-casual chain confirmed its expansion with a new restaurant planned for McLean, Virginia. In a statement, the company's CEO expressed excitement about planting roots in the community and furthering the company's mission. This announcement built on a period of positive momentum for the company, as its stock had already climbed 27% over the past month. The positive sentiment was further supported by analyst forecasts that suggested Sweetgreen's revenue was expected to grow 17% annually over the next three years, outpacing the broader industry's projection of 13% growth.

Sweetgreen is down 62.4% since the beginning of the year, and at $12.07 per share, it is trading 72.6% below its 52-week high of $43.97 from November 2024. Investors who bought $1,000 worth of Sweetgreen’s shares at the IPO in November 2021 would now be looking at an investment worth $243.84.

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