Sweetgreen Lowers Sales Outlook Amid Cyclosporiasis Outbreak

Sweetgreen Inc. lowered its annual comparable sales outlook to a potential 8% decline, down from a previous forecast of 4%. The adjustment follows a multistate cyclosporiasis outbreak that has reduced consumer demand for fresh prepared foods since mid-July. Second-quarter sales at established locations fell 6.2%, a decline that exceeded analyst expectations.

The company stated its supply chain remains unaffected and its restaurants do not serve the iceberg lettuce linked to the parasite. Despite this, the chain is struggling with high prices and product shortages. To attract diners, the company has introduced larger portions and cheaper wraps.

The broader outbreak saw the largest cluster linked to produce imported from central Mexico by Taylor Farms. In Michigan, where the state recorded 12,485 cases and two deaths since June, the Michigan Department of Health announced that consumers can resume eating leafy greens as case numbers slow.