Why Sweetgreen Stock Slid 12% in September
Shares of fast-casual salad chain Sweetgreen (NYSE: SG) have been sinking since the end of 2024, and September continued the trend. A disappointing earnings report in August led to a steep one-day drop, and some turnover in the C-suite in early September didn't stop the bleeding. Sweetgreen stock shed 12.3% of its value in September, according to data provided by S&P Global Market Intelligence, and the rout may not be over, as the restaurant chain faces continued challenges.
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Sweetgreen enjoyed a period of strong growth after it went public a few years ago, but economic realities are now catching up with the pricey salad chain. Same-store sales plunged 7.6% in the second quarter, restaurant-level profit slumped, and the company posted a larger operating loss than in the prior-year period. Overall sales edged up slightly, but only because Sweetgreen opened new restaurants.
Source Fool.com
