Shares of Sweetgreen, Inc. (SG) tumbled 6.99% in after-hours trading on Thursday, following the release of the company's financial outlook for fiscal year 2025. The sharp decline comes as investors digest disappointing projections for the salad chain's performance.

Sweetgreen announced that its same-store sales change for FY25 is expected to be approximately flat, signaling stagnant growth in existing locations. This lackluster forecast was compounded by the company's revenue outlook, which projects FY25 revenue to be between $740 million and $760 million. These figures appear to have fallen short of market expectations, prompting a sell-off in the stock.

Prior to the earnings release, options activity had suggested that traders were anticipating significant movement in Sweetgreen's share price. Market data indicated that pre-earnings options volume was 2.2 times the normal level, with calls slightly outpacing puts. The implied volatility had pointed to an expected 13.0% move in the stock price following the earnings announcement. The actual 6.99% drop falls within this range but clearly reflects negative sentiment towards the company's prospects.