After the salad chain lowered its forecast, the shares of Sweetgreen plummeted.
5% of the restaurant company's support center workforce was laid off and it will downsize to a smaller office building.
Since its IPO in November, Sweetgreen's stock has fallen 37%.
Here is what the company reported compared with what Wall Street was expecting.
The company revised its forecast lower due to softer sweetgreen sales around Memorial Day.
On the company's conference call, executives blamed a number of factors, including "unprecedented levels of summer travel," a slow return to the office, and another wave of Covid-19 cases.
Sweetgreen's net sales increased 45% in the second quarter of the year. Menu price hikes helped its same-store sales increase.
Sweetgreen has lowered its revenue forecast for the year from $515 million to $535 million. The chain lowered its projection for same-store sales to 20% to 26%.
Reback said on the call that they had been wrong on many of the calls.
Sweetgreen now expects adjusted losses before interest, taxes, depreciation and amortization to range from $45 million to $35 million, wider than its previous range of $40 million to $33 million.
The chain is taking steps to achieve profitability, including layoffs and moving to a smaller office. Severance packages and related benefits are expected to cost the company between $500,000 to $800,000. Third-quarter results are expected to be impacted by the charges.
The company reported a second-quarter net loss of $40 million, or 36 cents per share, compared to a net loss of $26 million, or $1.55 per share, a year ago. The increase in stock-based compensation was blamed for the company's increased losses.
You can read the full report here.
Sweetgreen's previous forecast for its same-store sales growth was incorrect.
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