Sweetgreen stocks tumbling after ripple -patat is not exciting

(Bloomberg) – Sweetgreen Inc. Stop his ripple patat, a menu that promised that customers could ‘feel good’ after only five months. The move came when the chain discussed a second consecutive quarterly sales drop. Shares dropped 23% in New York on Friday for their biggest decline on record. Sweetgreen’s sweet potato was intended to seek a call on customers looking for a healthier option than offered at other restaurants. They were fried and made with avocado oil instead of seed oils, which became a target of US health secretary Robert F. Kennedy Jr., despite limited evidence that it did harm. But without the braai volume of, for example, an McDonald’s, Sweetgreen’s sweet potato would often sit on the counter and suffer the fresh taste. Many customers drawn to the chain for salad and healthy rates do not come to the restaurant for the $ 4.95 Patat, which the company promised would redefine ‘fast food’. Sweetgreen said customers liked the sweet potato, but they added too much complexity to the restaurant operations, CEO Jonathan Neman said on Thursday at a call with analysts. “From next week, our ripple patat will strike to concentrate on our core products such as chicken and vegetables, he said. The salad chain struggles to improve operations and lure dinners back to its $ 15 salads and bowls. The chain reduced its sales guidance on Thursday after its restaurants achieved a 7.6% drop in comparable sales of the second quarter. The company now foresees that sales at restaurants that are open at least a year will fall between 4% and 6%, a large decrease of preceding expectations that the measure would be flat. The share has already lost about 61% of its value on Thursday, compared to a fall of less than 1% for the Russell 2000 index. Sweetgreen said sales of sales in several of the large urban markets of the business are more outspoken and that it would work on how customers see the value of its meals. In May 2024, the chain steak introduced as a protein option, which drew Diners and increased sales numbers thanks to the higher price tag. This time, traffic decreased and people switched to cheaper alternatives according to the company. Neman said comparable sales have modestly improved so far in the third quarter. The chain increased chicken and tofu portions by 25%, upgraded a few recipes to improve the taste and quality, and started with a limited $ 13 time, he added. In July, it reinstated its seasonal menu after finding that the novelty has called on regular customers. It also launched a new loyalty program to move in. -with help from Tonya Garcia. (Updates with the closure of share price in the second paragraph.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP