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Sweetgreen (SG) is pinning its uncertain future on under $15 wraps, designed to address consumer complaints that its salad and grain bowls are too expensive.
For the first time this week, Sweetgreen began selling four wraps. “You know, the classic chicken caesar wrap in most [locations] starts at $10.45 … and no wrap in any market is above $15,” Sweetgreen co-founder and CEO Jonathan Neman told analysts on a late Thursday earnings call.
He added, “I think both from a quality, craveability, and price value, we are really delivering, and customers are noticing it.”
Over $10 for a wrap isn’t exactly a screaming hot deal, even if it features “roasted chicken, parmesan crisps, shaved parmesan, garlic breadcrumbs, chopped romaine, caesar dressing and a hint of lemon juice.”
But then again, Sweetgreen mostly operates in expensive cities where higher-income office workers order meals to-go.
The wraps have to be embraced by eaters beyond just lunch hours, however. Sweetgreen’s performance has been absolutely dreadful as consumers say no to $20-plus bowls from its tech-forward kitchens.
The company’s first quarter same-store sales crashed 12.8%, worse than the 11.5% plunge in the fourth quarter of last year. For perspective, Burger King US (QSR) tossed up a 5.8% same-store sales increase in the first quarter. Chipotle (CMG) clocked in with a 0.5% gain.
In 2025, Sweetgreen’s same-store sales fell 7.9%, and it lost $134.1 million on a net basis.
The business didn’t improve much in April, either.
Execs said on the earnings call that same-store sales in the month fell 8%. Second quarter same-store sales are projected to drop 4% in part due to optimism around the new wraps.
Investor confidence in Sweetgreen has eroded significantly. Since its high-profile IPO in November 2021, Sweetgreen’s stock has plummeted by approximately 86% to $6.87.
The stock debuted at $28, and its first-day peak touched just over $50.
“Sweetgreen is seeing some early signs that its efforts to recover lost sales/traffic, including a greater focus on value, more platforms (e.g., wraps) and better operations, have begun to resonate with guests (e.g., improvement in trends in April),” Citi analyst Jon Tower wrote in a note. “It will continue to take time before this appears more prominently in KPIs (i.e., comps expected to be down ~4% in 2Q), though the thoughtful/measured approach across the enterprise should yield stickier traffic and improved profits/cash flows for the brand.”
Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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