1218 ET - Sweetgreen's ingredient supply chain is largely insulated from tariffs, CFO Mitch Reback says on a call with analysts, though he warned that other areas of the business will likely be affected by new levies. The fast-casual salad chain sources the vast majority of its ingredients domestically, Reback says. It previously sourced its packaging from China but began moving items out of the country about six months ago in preparation for tariffs, he adds. Still, tariffs are expected to contribute to higher costs for technology, such as the company's proprietary automated salad builder, which sources about 15% of its components from China. Levies are additionally likely to increase build-outs cost for new restaurants by about 10%, Reback says. Shares fall 17% after Sweetgreen cut its outlook, citing a slowdown in spending. (connor.hart@wsj.com)
(END) Dow Jones Newswires
May 09, 2025 12:18 ET (16:18 GMT)
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