Sweetgreen cuts full-year outlook as cyclospora fears weigh on sales
cnbc.com • • business
Key Points:
- Sweetgreen lowered its full-year outlook, projecting same-store sales declines of 7% to 8% for 2026 due to reduced consumer demand amid fears related to the ongoing cyclospora outbreak.
- The salad chain's shares dropped more than 15% in extended trading following the announcement, despite Sweetgreen not being implicated in the outbreak.
- The outbreak, linked to contaminated iceberg lettuce from a Taylor Farms facility in Mexico, has sickened over 10,000 people and caused two deaths, affecting consumer confidence in fresh produce.
- Sweetgreen now expects an adjusted EBITDA loss of $23 million to $27 million, a significant revision from its prior forecast of positive earnings between $1 million and $6 million.
- Other restaurant chains, including Chipotle and Salad and Go, have also experienced sales declines or financial difficulties due to consumer concerns about cyclospora contamination.
