Sweetgreen Q4 Same-Store Sales Plunge 10% While Cava Gains 0.5%
Sweetgreen’s same-store sales dropped nearly 10% in Q4 with foot traffic down 12%, marking a 16% year-to-date stock decline despite twenty years of operations. Competitor Cava reported record annual revenue and Q4 same-store sales growth of 0.5%, driving a 42% stock gain.
1. Q4 Performance Decline
Sweetgreen reported a 9.8% decline in same-store sales during the fourth quarter, driven by a 12% drop in foot traffic. The chain’s inability to attract repeat customers contributed to a 16% year-to-date decline in its share price.
2. Competitor Growth Comparison
Cava posted record full-year revenue and delivered 0.5% same-store sales growth in Q4, outperforming peers in lower-income neighborhoods. This turnaround has propelled Cava’s stock up 42% year-to-date, underscoring stronger consumer demand for its menu offerings.
3. Persistent Profitability Challenges
Despite operating for nearly two decades, Sweetgreen has yet to record an annual profit. Initiatives like the baked fries launch, which required an expensive marketing push and disrupted lunch service, have failed to generate sustainable margin improvement.