Sweetgreen, Inc. Q2 2026 Earnings Recap

Sweetgreen shares dropped 11.5% following the quarter as investors reacted negatively to a sharper-than-expected deceleration in comparable restaurant sales and ongoing margin pressure, compounded by a cautious outlook that incorporated uncertainties from recent produce-related health incidents.

Key Takeaways

• Comparable restaurant sales declined 6.2%, signaling continued traffic weakness despite sequential monthly improvement.
• Restaurant-level profit margin contracted to 13.1%, reflecting margin compression amid operational challenges.
• Adjusted EBITDA showed a slight loss of $0.2 million, indicating the business is still struggling to return to profitability.
• Management highlighted operational improvements and new initiatives like wraps to drive frequency, but these have yet to offset broader sales declines.
• The outlook was tempered due to potential impacts from external supply issues, including a cyclospora outbreak (affecting the category) and a jalapeño recall, adding uncertainty to future performance.