Sweetgreen Is Up 32% Since the Cyclospora Outbreak Ended. Is There More Room To Run?
Sweetgreen (NYSE:SG) has been a bitter pill to swallow for investors over the last two years, as the stock is down 80% from its peak in late 2024. Sales growth at the fast-casual chain turned negative amid concerns about a lack of value in its menu, as its customer base has faced years of elevated inflation and the high cost of living. Additionally, Sweetgreen has faced headwinds related to a change in its loyalty program, and one-off events like the LA wildfires and the cyclospora outbreak. The company also sold the business that owns the Infinite Kitchen, though it retains the rights to use the food prep and expediting technology. Of those challenges, the cyclospora outbreak was the most recent. Though Sweetgreen's food was not implicated, as it doesn't use iceberg lettuce, its association with salad led to a downturn in traffic. Continue reading