Fast-casual favorite set to shutter scores of locations as rivals take over
The build-your-own salad bowl was once one of the hottest lunches in America. But the fast-casual chain that helped popularize it is now facing a much tougher reality.
Sweetgreen is preparing to close more restaurants after disappointing sales and mounting losses, even as competitors like Cava and Chipotle continue to expand and post stronger results.
The once high-flying health-focused brand has confirmed it will shut 'a handful' of locations in 2026 as leases expire, while also reviewing additional underperforming restaurants that could be on the chopping block.
'We are moving with urgency through the 'Sweet Growth Transformation Plan' to strengthen the core of the business,' said Sweetgreen CEO Jonathan Neman in a statement.
Sweetgreen's latest financial results underscore the challenges facing the chain.
In the fourth quarter of 2025, revenue fell 3.5 percent year over year to $155.2 million, while same-store sales dropped 11.5 percent, according to the company's earnings report.
For the full year, the company reported a net loss of $134.1 million, which it attributed to weaker restaurant-level profitability, higher operating costs, and expenses tied to opening 15 new restaurants.
Sweetgreen expects the pressure to continue.
The fast-casual salad chain Sweetgreen is planning more restaurant closures as it struggles with slowing sales and mounting losses
Sweetgreen's latest financial results underscore the challenges facing the once-high-flying salad chain
The company forecasts same-store sales will decline between 2 percent and 4 percent in 2026, suggesting demand remains soft.
Chief financial officer Jamie McConnell told investors the company is taking a more cautious approach to expansion while reviewing underperforming locations.
Founded in 2007, Sweetgreen grew rapidly by promoting healthy bowls and salads aimed at urban office workers.
The chain went public in 2021 during a boom in fast-casual restaurant stocks. At the time, leadership outlined ambitious plans to reach 1,000 locations by 2030.
But by late 2025, slowing foot traffic, rising costs and a more price-sensitive consumer had begun to derail that momentum.
The company has already closed some locations, including a long-running restaurant in Arlington, Virginia's Crystal City neighborhood, and more closures could follow as leases come up for renewal.
Wall Street has been divided on whether Sweetgreen's turnaround plan can succeed.
Shares of the company have fallen nearly 15 percent so far this year and are down about 89 percent over the past five years, reflecting investor concerns.
Analysts at Barron's have maintained a sell rating, warning the chain's fundamentals remain weak.
Founded in 2007, Sweetgreen grew rapidly by promoting healthy bowls and salads aimed at urban office workers
But by late 2025, slowing foot traffic, rising costs and a more price-sensitive consumer had begun to derail Sweetgreen's momentum
'The company's fundamentals look very poor, making an investment in its shares purely speculative,' Barron's analysts said.
Others believe the brand still has a chance to recover if management's strategy works.
'Sweetgreen hasn't exactly panned out the way that investors had hoped,' said financial analyst Neil Patel, noting the stock is now trading close to its lowest levels since its IPO.
Fortune retail analyst Phil Wahba argues the company may also be facing a broader shift in food trends.
'Every food trend eventually runs its course,' Wahba said, noting that customizable salad and grain bowls - once a staple of office lunches - are now sometimes mocked as 'slop bowls.'
While Sweetgreen struggles, competitors are seeing stronger momentum.
Mediterranean chain Cava recently reported fourth-quarter revenue of $272.8 million, up more than 21 percent year over year, beating Wall Street expectations and boosting investor confidence.
The company expects same-store sales growth of 3 percent to 5 percent in 2026 and plans aggressive expansion, with dozens of new restaurants scheduled to open.
Chipotle continues to grow overall revenue thanks to new store openings and higher menu prices, even as traffic has softened in some locations
Mediterranean chain Cava recently reported fourth-quarter revenue of $272.8 million, up more than 21 percent year over year, beating Wall Street expectations and boosting investor confidence
Meanwhile, Chipotle continues to grow overall revenue thanks to new store openings and higher menu prices, even as traffic has softened in some locations.
Industry analysts say the diverging fortunes highlight how difficult the fast-casual market has become as consumers grow more cautious with their spending.
With inflation and higher menu prices reshaping dining habits, chains that can balance value, innovation and expansion appear better positioned - while others, like Sweetgreen, are being forced into a reset.
For now, Sweetgreen is betting its turnaround plan - which includes new menu items, stronger digital engagement and tighter cost controls - can restore growth.
But after years of rapid expansion and investor hype, the salad chain now faces a much tougher challenge: winning diners back.
