Sweetgreen Faces Sales Decline Amid Salad Safety Concerns

WHO:

Fast Company - Sweetgreen, a salad chain, cofounder and CEO Jonathan Neman, Centers for Disease Control and Prevention (CDC), Food and Drug Administration (FDA), Yum Brands' Taco Bell, Chipotle Mexican Grill, Salad and Go.

WHAT:

Fast Company - Sweetgreen's updated outlook for 2026 now projects same-store sales to drop between 7% and 8%, worse than the previous forecast of a 2% to 4% decline.

CNBC - Sweetgreen is now expecting an adjusted loss before interest, taxes, depreciation, and amortization of $27 million to $23 million, a significant change from the previous forecast of earnings between $1 million and $6 million.

Bloomberg Markets - The cyclospora outbreak has sickened more than 10,000 people and led to two deaths, impacting consumer behavior and restaurant sales across the sector.

Fast Company - Sweetgreen's same-store sales fell 6.2% for the second quarter ending June 28, marking its sixth straight decline.

CNBC - Sweetgreen's adjusted EBITDA is now projected to be a loss of $27 million to $23 million, a change from the previous forecast of earnings between $1 million and $6 million.

Fast Company - Sweetgreen's adjusted EBITDA is now projected to be a loss of $23 million to $27 million, a significant change from the previous forecast of earnings between $1 million and $6 million.

CNBC - Sweetgreen's shares fell more than 15% in extended trading, and the stock is down more than 24% over the last month.

Fast Company - Sweetgreen plans to open approximately 13 net new restaurants, a decrease from 2025’s 35 net and 2024’s 25 net restaurant openings.

Fast Company - Sweetgreen's second quarter earnings report indicated a significant decline in sales due to a cyclospora outbreak.

Fast Company - Sweetgreen predicts same-store sales for the year will drop between 7% and 8%.

Fast Company - Sweetgreen lowered its restaurant-level profit margin from a range of 14.2% to 14.7% to 10.5% to 11%.

Fast Company - Sweetgreen's adjusted EBITDA is projected to be a loss of $23 million to $27 million.

CNBC - Sweetgreen's shares fell more than 15% in extended trading.

CNBC - The cyclospora outbreak has sickened at least 10,000 people and led to two deaths.

CNBC - Sweetgreen's previous forecast anticipated same-store sales declines of 2% to 4%.

CNBC - Other restaurant chains not linked to the contaminated iceberg lettuce have also seen sales fall.

WHERE:

Fast Company - Sweetgreen operates 287 restaurants across the U.S., including 35 automated locations known as Infinite Kitchen.

CNBC - The contaminated iceberg lettuce was supplied by a Taylor Farms facility in central Mexico.

WHEN:

Fast Company - The cyclospora outbreak has been ongoing since mid-July.

CNBC - Sweetgreen's updated outlook is for the year 2026.

WHY:

Bloomberg - The cyclospora outbreak has caused fewer people to go out to eat or get fast food, impacting the restaurant sector.

CNBC - The updated outlook reflects reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis.

Fast Company - The decline in sales is attributed to reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis.

CNBC - Fear of the waterborne parasite has affected consumers' desire for fresh produce, particularly salad.

HOW:

Fast Company - Sweetgreen cofounder and CEO Jonathan Neman stated that the company is focusing on "building the core business back" and "perfecting the prototype" of its restaurant model.

Fast Company - Sweetgreen removed jalapeños from two of its dressings due to a CDC recall related to salmonella infections.

Fast Company - Sweetgreen cofounder and CEO Jonathan Neman stated that the company will continue to open stores at a conservative pace, focusing on real estate profiles where Sweetgreen resonates.

Fast Company - Sweetgreen removed jalapenos from two of its dressings following a CDC recall due to salmonella infections.

Fast Company - Sweetgreen plans to open approximately 13 net new restaurants, a decrease from previous years' openings.

(UPDATED August 7, 2026 20:38 UTC)

Sweetgreen has revised its outlook for 2026, now projecting same-store sales to decline between 7% and 8%, a significant drop from the earlier forecast of a 2% to 4% decline. The company is also expecting an adjusted loss before interest, taxes, depreciation, and amortization of between $27 million and $23 million, a stark contrast to the previous prediction of earnings between $1 million and $6 million. Amid a cyclospora outbreak that has affected over 10,000 people and resulted in two deaths, Sweetgreen's cofounder and CEO Jonathan Neman emphasized the company's commitment to "building the core business back" and "perfecting the prototype" of its restaurant model.

(UPDATED August 7, 2026 17:47 UTC)

Sweetgreen is facing significant challenges, with same-store sales dropping by 6.2% for the second quarter ending June 28, marking its sixth consecutive decline. The company now anticipates an adjusted EBITDA loss between $27 million and $23 million, a stark contrast to earlier projections of earnings between $1 million and $6 million. Contributing to this downturn, a cyclospora outbreak has led to decreased dining out, and Sweetgreen has also removed jalapeños from two dressings due to a CDC recall linked to salmonella infections.

(UPDATED August 7, 2026 16:47 UTC)

Sweetgreen's adjusted EBITDA is now projected to be a loss of $23 million to $27 million, a stark contrast to the previous forecast of earnings between $1 million and $6 million, leading to a more than 15% drop in shares during extended trading and a decline of over 24% in the past month. The updated outlook is attributed to reduced consumer demand for fresh prepared foods, largely due to a multistate outbreak of cyclosporiasis. In response, cofounder and CEO Jonathan Neman announced that Sweetgreen plans to open approximately 13 net new restaurants, a significant decrease from the 35 net openings in 2025 and 25 in 2024, while focusing on locations that resonate with their brand.

(UPDATED August 7, 2026 14:18 UTC)

Sweetgreen has reported a significant decline in sales due to a cyclospora outbreak that has sickened at least 10,000 people and resulted in two deaths, leading the company to predict same-store sales will drop between 7% and 8% for the year. The restaurant chain's adjusted EBITDA is projected to reflect a loss of $23 million to $27 million, and their shares fell more than 15% in extended trading following the news. In response to the outbreak, which has been ongoing since mid-July and is linked to contaminated iceberg lettuce from a Taylor Farms facility in Mexico, Sweetgreen has removed jalapenos from two dressings and plans to open approximately 13 new restaurants, a decrease from previous years.