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2025-08-08T09:03:53Z
Sweetgreen reported disappointing financials, but the company has a turnaround plan.
Out: ripple fries. They’re too complex.
In: bigger chicken and tofu portions, and some cheaper dishes.
Sweetgreen is having a tougher time selling $15 salads.
On Thursday, the Los Angeles-based salad chain cut sales guidance after reporting disappointing earnings for the second straight quarter. Its turnaround plans include 25% bigger portions of chicken and tofu, recipe upgrades for chicken and salmon, and $13 salads for members.
“It’s pretty obvious that the consumer is not in a great place overall,” said CEO Jonathan Neman on Thursday’s call.
He said consumers started to be more cautious in April and that several large urban markets have been “subdued.” But he said the changes have already helped in the third quarter.
Neman also said Sweetgreen would discontinue its ripple fries — think healthier french fries made in an air fryer — after five months because they were too complex for the restaurants to make.
He added that the company will keep working on new products, including homemade drinks that are in test markets.
“Sweetgreen’s second quarter results reflected a convergence of several headwinds, including macroeconomic pressures, a challenging comparison to last year’s strong Q2, and the transition of our loyalty program,” Neman said in the earnings release. “While we’re not satisfied with today’s results, we’re confident in our ability to improve in the back half of 2025.”
Sweetgreen’s stock fell 23% after hours following the earnings report. The stock is down over 60% this year.
The company reported a net loss of $23.3 million in the second quarter, compared to a loss of $14.5 million last year. Same-store sales dropped 7.6% year-over-year.
Sweetgreen’s competitors including Chipotle have also cited economic uncertainty for weak results. Other chains, from Starbucks to McDonald’s, have launched value meals to bring back price-sensitive customers.
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