Sweetgreen (NYSE:SG) stock slid over 30% at its lows in extended trading on Tuesday after posting disappointing second quarter results.
The California-based fast casual chain reported $124.9M in revenue alongside a $0.36 per share loss. Analysts had anticipated $130.5M in revenue and only a $0.30 loss. While management focused on improving margins amid a recovery from COVID impacts, the focus fell squarely on declining sales in Tuesday’s after hours trading.
“We began to see softness in revenue around Memorial Day and are therefore lowering our 2022 guidance,” CFO Mitch Reback explained.. “We will continue to manage corporate overhead and efficiently run our restaurants as we work towards profitability.”
The chain now expects revenue ranging from $480M to $500M for the full year, down from the prior expectation of $515M to $535M. An updated same-store sales forecast of between 13% and 19% was also well below prior guidance of 20 to 26%.
The company also announced a 5% headcount reduction effective as of Monday. The employees impacted were based at the Sweetgreen Support Center, which the company noted it is downsizing.
Shares remained under pressure in after hours trading, swinging between 20 to 30% declines.
Read more on the details of the results.