Shares of Sweetgreen, Inc. (SG) experienced a sharp decline in after-hours trading, plummeting 6.99% following the release of the company's financial outlook for fiscal year 2025. The salad chain's stock movement reflects investor disappointment with the company's projections.

Sweetgreen announced that its same-store sales change for FY25 is expected to be approximately flat, indicating a lack of growth in existing locations. This stagnation in comparable sales could be a red flag for investors, as it may suggest challenges in attracting repeat customers or increasing average transaction values.

Adding to the bearish sentiment, Sweetgreen provided its revenue outlook for FY25, projecting between $740 million to $760 million. While this range represents the company's expectations, it's possible that investors were hoping for more robust growth figures, especially considering the competitive nature of the fast-casual dining sector.

The after-hours plunge suggests that the market is reassessing Sweetgreen's growth prospects and profitability potential in light of these announcements. Investors will likely be closely watching for any additional commentary from management regarding strategies to stimulate growth and improve financial performance in the coming quarters.