By Connor Hart

Shares of Sweetgreen slid after the fast-casual restaurant chain cut its full-year outlook, hurt in part by a broad slowdown in consumer spending.

The stock was down 16% to $15.33 in midday trading Friday, a slight rebound from the 52-week low of $14.71 reached earlier in the session. Shares have lost roughly half their value in the past year.

The Los Angeles-based eatery, known for its salads and grain bowls, after the bell Thursday said it now expects full-year revenue of $740 million to $760 million, down from a prior view for sales of $760 million to $780 million. Analysts surveyed by FactSet modeled revenue of $765.3 million for the year.

The company additionally forecast same-store sales--which account for store openings and closings--to be approximately flat for the year, compared with a prior outlook of up 1% to 3%. Analysts were looking for comparable sales to rise 1.8%.

Chief Executive Jonathan Neman said on a call with analysts that sales trends in April were soft, particularly in the company's largest markets, including New York City, Boston and Los Angeles. He attributed the soft sales to a broad slowdown in consumer spending, prompted by an uncertain and volatile macroeconomic environment.

Neman added that the recent quarter was hurt by external headwinds, including calendar shifts stemming from holiday timing, the Los Angeles wildfires and their lingering impacts, and poor weather across several regions.

Sweetgreen's outlook cut came as the company posted a net loss of $25 million for the March quarter, compared with a loss of $26.1 million a year earlier.

Sweetgreen notched a quarterly loss of 21 cents a share, compared with analyst projections for a loss of 20 cents a share, according to FactSet.

Sales increased 5.4% to $166.3 million, topping the $165.1 that analysts expected. The company attributed its higher top line in large part to 30 net new restaurant openings, which helped offset falling same-store sales.

Comparable sales fell 3.1% during the recent quarter. Analysts had forecast same-store sales to fall 4%.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 09, 2025 12:05 ET (16:05 GMT)

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