The challenge: Sweetgreen is feeling the squeeze. Macroeconomic headwinds—especially in major urban markets—are prompting more cost-conscious consumers to think twice before splurging on a salad. After a second straight quarter of weak performance, the chain slashed its same-store sales guidance from flat to down between 4% and 6% for the year.

The numbers:

• Loss per share was 20 cents, wider than a 13-cent loss a year ago and missing analysts’ expectation of a 12-cent loss.
• Revenues were $185.6 million, up 0.5% YoY, but below the $191.8 million forecast.

Reading the room: Sweetgreen’s response to shifting consumer sentiment has struggled to resonate.

• Earlier this year, it introduced ripple fries, a “healthier” take on the fast food staple made with avocado oil and air-fried. But the move felt off-brand for a salad-focused concept, and the fries often sat out too long, compromising taste.
• More recently, it boosted tofu and chicken portion sizes by 25%—at a 120 basis point cost hit—introduced limited-time pricing, and launched $13 bowl drops for loyalty members. But in a market where competitors like Potbelly are promoting full meal combos at $7.99, even $13 feels steep.

Our take: With value top of mind for many consumers, Sweetgreen needs to do more than tweak pricing or portion sizes; it must convince customers that its offering is worth the premium pricing. Without a clearer value narrative, it risks losing relevance in an increasingly budget-conscious dining landscape.