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]

Industry Insights - Consumers in the US are dining out despite food inflation, with a notable shift towards ordering more appetizers, which have increased by 20% year over year, while entrees and desserts remain flat or declining [1] - The trend termed the "appetizer economy" is attributed to appetizers being more frequently tied to promotions and drink specials, making dining out more affordable [1] - Food inflation persists, with "food away from home" inflation at 3.7%, and full-service meals inflation at 4.2%, indicating a K-shaped economy in food spending [2] Company Analysis - Jack in the Box Inc. (NASDAQ:JACK) is highlighted as a strong fast food stock, with RBC Capital raising its price target from $16 to $25, citing the company's strong brand and potential for unit growth [7][8] - Jack in the Box is divesting its subsidiary Del Taco Holdings Inc. for $115 million, which is part of its "Jack on Track" plan aimed at improving its balance sheet and focusing on its core brand [9][10] - Sweetgreen, Inc. (NYSE:SG) is also noted as a promising fast food stock, with RBC Capital maintaining a Buy rating and a price target of $8, alongside its expansion into the Sacramento market with new restaurant openings [11][12][14]