Post-pandemic darling sweetgreen was once touted by its boosters as the “next Chipotle.” Nearly four years after its public debut, it's going hungry on Wall Street.
The fast casual salad chain — which predominately operates in affluent metros like Los Angeles, New York City, and Chicago — is down more than 82% since its Nov. 2021 debut, with its 300%+ rally coming undone amid slowing sales and a still-unprofitable business.
Its 300% rally, which made it a hot commodity among traders last year, was made possible by fantastic growth. The company's same-store revenue rose 9.3% year-over-year in Q2 2024, which was helping to improve the company's losses.
However, all its progress has come undone. In the first quarter of 2025, the company downgraded its outlook for the year, blaming the LA Wildfires for its poor performance. For that, its stock sank, but investors gave it a pass.
However, as declining reviews among a cropping of nationwide sweetgreen locations showed, it wasn't just the weather driving away affluent urbanites. It might well have been the $17 salads. In Q2 2025, same-store sales fell off a cliff, declining 7.6% year-over-year. As a result, it cut its growth outlook for the year for a second time.
Things are going the wrong way for the one-time retail darling. As a result, it's pulling out the stops to stop the business from unfolding.
More Bowl for your Buck
In response to the steep decline in same-store sales, sweetgreen sent out an email blast to customers on Friday, committing to increase the amount of protein in its bowls and salads, likely a means to win back customers who have shrugged off the brand.
A company representative told TheStreet that, “We remain focused on strengthening our value proposition, and have increased our chicken and tofu portioning by 25%.” They say that guest satisfaction has increased in response to the larger portions.
Some of that approximation has been made possible by the company's Infinite Kitchen robot, which has turned new locations into a high-throughput assembly line for salads and bowls with the help of human workers.
However, the macros on sweetgreen's web menu have not been updated to reflect the larger portions of protein, so we'll have to wait and see how this is applied in practice.
Independent of improving its perceived value, the company plans to continue pushing its discounted $13 Bowl of the Week, which drops every Monday for its Sweetpass Rewards members. (It's free to sign up.)
At the same time, sweetgreen is giving up on process-intensive products like its Ripple Fries, which it referred to as “a fan favorite in 2025.” A representative said that the effort would help their various locations “shift kitchen operations to focus on what we do best, and make room for even more newness and innovation.”
End of the Bowl Market?
sweetgreen is hardly alone. While it's down 70% year-to-date, other ‘Bowl Market' plays which rallied throughout 2023 and 2024 are coming undone as well. Competitors Chipotle (CMG) and Cava Group (CAVA) are down 30% and 28% year-to-date respectively, a sign that this is by no means an isolated incident.
The pullback in these once high-flying consumer giants points to increased reluctance among consumers, even affluent-types, to eat out. To what extent that's a product of an already-diminished economic environment, waning perceptions about ‘value' in fast casual chains, or a pushback to higher prices is up to estimation.
But at this stage, sweetgreen no longer sees the growth it forecasted going into 2025. Instead, the company now sees same-store sales shrinking by 4-6% in the fiscal year. And despite the chain continuing its expansion, investors might be wary about coming along for the ride, particularly given the drastic turnaround for the brand since the start of the year.
