Why is L.A.'s salad titan, Sweetgreen, wilting?

Core Insights - Sweetgreen's salad business is experiencing a decline in popularity, with a significant drop in same-store sales and a net loss reported last quarter [2][5] - The company's stock has decreased over 75% in the past year, reflecting waning consumer interest and increased competition from cheaper dining options [3][4] Financial Performance - Sweetgreen reported a net loss of $36.1 million on revenue of $172.4 million last quarter, falling short of Wall Street expectations [5] - Same-store sales decreased by 9.5% in the last quarter, despite efforts to increase portion sizes and introduce new menu items [2] Strategic Changes - The company has laid off 10% of its support center workforce in Los Angeles and one of its founders has stepped down [2] - Sweetgreen sold its food automation company, Spyce, for nearly $200 million, which it had acquired for about $70 million in 2021, to focus on growth and operational efficiency [6][7] Market Trends - Younger consumers are showing reduced interest in Sweetgreen's offerings, coinciding with rising inflation and a shift towards more affordable dining options [5] - The perception of Sweetgreen as a premium health product may be impacting its sales, as consumers prioritize basic necessities over wellness [4]