Sweetgreen Inc. reported second-quarter 2025 revenue of $185.6 million, missing analyst estimates of $192.1 million to $194.3 million and reflecting a 0.5% year-over-year increase. The company posted an adjusted loss per share of $0.20, wider than the expected loss of $0.11 and down 54% compared to the previous year. Same-store sales declined 7.6% year-over-year, a reversal from a 9.3% increase in the prior period. Operating earnings before interest and taxes (EBIT) showed a loss of $26.4 million, worse than the estimated loss of $14.2 million, while adjusted EBITDA was $6.4 million versus the anticipated $10.9 million, with a margin of 3.5%. Sweetgreen's CEO attributed the disappointing results to multiple headwinds, including macroeconomic pressures, a challenging comparison to the strong prior-year quarter, and the transition of the company’s loyalty program. Following the earnings release, Sweetgreen's shares fell approximately 28% to 30.5% in pre-market trading. Several analysts downgraded their price targets for Sweetgreen, with Barclays lowering its target to $10 from $17, RBC to $13 from $25, UBS to $13 from $19, Piper Sandler to $12 from $20, and Cowen to $10 from $15. The company also updated its full-year 2025 guidance, projecting same-store sales declines between 4% and 6%, below previous estimates of a 1.4% decline. Meanwhile, the fast-casual restaurant sector faces broader challenges, as visits to U.S. restaurants fell 1% year-to-date compared with 2024, with fast-food traffic declining 2.3% in the second quarter. Cava Group, another fast-casual chain, is expected to report second-quarter results soon, with some analysts anticipating softer-than-expected numbers amid ongoing sector headwinds.