Sweetgreen down after annual forecasts cut on weak demand

** Shares of salad chain Sweetgreen SG.N are down about 15% at $5.00 premarket.

** The company cut its fiscal 2026 same-store sales growth and core profit forecast on Thursday, citing reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis.

** It now expects same-store sales to decline between 7% and 8%, compared with its prior expectations of a 2% to 4% decrease.

** Sweetgreen also sees adjusted EBITDA in a loss range of $23 million to $27 million, compared with a profit of $1 million to $6 million it expected earlier.

** The company missed second-quarter revenue estimates on Thursday, hurt by weak traffic at its stores.

** It reported quarterly revenue of $192.7 million versus estimates of $194.9 million.

** Sweetgreen logged a quarterly same-store sales decline of 6.2%, reflecting a 2% decrease in traffic and a 4.2% decrease in product mix.

** As of the last close, SG was down 13% year to date.