Core Viewpoint - Sweetgreen's shares fell over 25% after the company revised its 2025 revenue outlook downward for the second consecutive quarter, attributing the decline to issues with its loyalty program, weak consumer sentiment, tariff impacts, and operational challenges [1][2]. Revenue and Sales Outlook - For the full year 2025, Sweetgreen now anticipates revenue between $700 million and $715 million, a decrease from previous estimates of $740 million to $760 million in May and $760 million to $780 million in February [1]. - The company projects negative same-store sales for the year, estimating a decline of 4% to 6%, down from an initial expectation of single-digit growth [2]. Financial Performance - Sweetgreen reported a second-quarter loss of $0.20 per share, worse than the expected loss of $0.12, with revenue of $186 million compared to the estimate of $192 million [2]. - Same-store sales fell by 7.6% in the quarter, contrasting with a 9.3% increase in the same quarter last year, and analysts had anticipated a decline of 5.5% [3]. Loyalty Program Impact - The transition from the Sweetgreen+ subscription to the new SG Rewards program resulted in a 250 basis-point headwind to same-store sales in the second quarter [4]. - The company experienced a revenue decline from a small but frequent cohort of Sweetgreen+ customers, although management believes this impact will be temporary [4]. Operational Focus - Company leadership is prioritizing improvements in customer satisfaction and store operations, with only one-third of restaurants meeting performance standards [5]. - The new COO, Jason Cochran, is expected to lead initiatives aimed at enhancing operational efficiency through a program called Project One Best Way, which focuses on improving speed, food standards, and portion sizes [5]. Consumer Sentiment - Ongoing pressure on consumer spending has been more prolonged than anticipated, contributing to the company's performance challenges [6]. - Management noted that the overall consumer sentiment is not favorable, impacting sales and growth [6].