Sweetgreen’s Stock Plummets as Growth Plans Collapse and Losses Mount

Sweetgreen, the fast-casual chain known for healthy meals and sustainability, has faced a tough year. Once valued at $28 per share during its 2021 IPO, the company’s stock now trades at a fraction of that price. Despite ambitious expansion plans, financial struggles and falling sales have forced a sharp slowdown in growth.

In early 2025, Sweetgreen aimed to open 37 new locations. By the end of the third quarter, it had 266 restaurants—far below earlier projections. The company has since cut its 2026 expansion target to just 20 new sites, a significant pullback from previous goals.

Financial results for the first nine months of 2025 paint a grim picture. Revenue grew by only 2%, while same-store sales dropped by 7%. Net losses worsened, rising from $61 million in 2024 to $84 million this year. Operating expenses also climbed, adding to the pressure. The chain’s focus on automation, health, and sustainability has not translated into stock gains. Challenges with scaling its Infinite Kitchen technology, higher costs, and weak sales growth have hurt performance. Competitors like Chipotle and Cava, meanwhile, have thrived with stronger customer traffic, better pricing power, and more efficient operations. Sweetgreen currently holds $130 million in cash and expects another $100 million from selling its automation unit, Spyce. Yet, with shares down nearly 80% over the past year and a price-to-sales ratio of 1.2, investor confidence remains shaky.

Sweetgreen’s future as a reliable investment stays uncertain. The company has slowed expansion and sold off assets to shore up finances. But with declining sales, rising losses, and a struggling share price, recovery will depend on turning around its core business performance.