Sweetgreen cuts full-year outlook as cyclospora fears weigh on sales

📰 source: cnbc_topnews · 💼 business

salad chain sweetgreen cut its full-year outlook on thursday, projecting same-store sales declines of 7% to 8% for 2026, steeper than the 2% to 4% drop it previously forecast. shares fell more than 15% in extended trading. the company blamed reduced consumer demand for fresh prepared foods due to the ongoing cyclospora outbreak, though sweetgreen hasn't been linked to the contaminated lettuce. the fda has pointed to iceberg lettuce from a taylor farms facility in mexico as the likely culprit. the outbreak has sickened at least 10,000 people and led to two deaths, according to the cdc. taco bell, the only national chain linked, is already seeing sales bounce back.

sweetgreen also reported its second-quarter results after the bell tuesday. its quarterly loss was steeper than expected and revenue missed wall street forecasts. for the year, the company now expects an adjusted loss of $27 million to $23 million, versus the prior outlook for positive ebitda of $1 million to $6 million. other chains are feeling the fear too — chipotle said cyclospora worries cut about 2 percentage points off sales in late july, and salad and go filed for bankruptcy on tuesday, citing consumer mistrust from the outbreak.

why it matters: cyclospora fears are forcing sweetgreen to slash its outlook, a sign the outbreak is denting sales across the restaurant sector.

source: cnbc_topnews
sentiment: -0.50 · impact: 0.40