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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Sweetgreen (SG) Shares Are Trading Lower Today

SG Cover Image

What Happened?

Shares of casual salad chain Sweetgreen (NYSE: SG) fell 27.2% in the morning session after the company reported disappointing second-quarter financial results and slashed its full-year guidance. The salad chain missed analyst estimates on both the top and bottom lines, reporting second-quarter revenue of approximately $185.6 million and a loss of $0.20 per share. A key factor in the weak results was a 7.6% year-over-year decline in same-store sales, which measures revenue growth at existing restaurants and reflects weaker customer traffic. Compounding the issue, Sweetgreen significantly cut its full-year 2025 revenue guidance. The company now forecasts revenue between $700 million and $715 million, down from a previous range of $740 million to $760 million.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sweetgreen? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Sweetgreen’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. But moves this big are rare even for Sweetgreen and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 7.5% as 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.

Sweetgreen is down 70.6% since the beginning of the year, and at $9.44 per share, it is trading 78.5% 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 $190.61.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

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