Sweetgreen lowered its full-year same-store sales forecast to a decline of 7% to 8%, far worse than its previous guidance of a 2% to 4% decline, and now projects an adjusted EBITDA loss of $23 million to $27 million, compared to a previously estimated positive EBITDA of $1 million to $6 million. The salad chain, which does not serve the iceberg lettuce linked to the outbreak, saw its shares fall 27% in July amid a broader restaurant-industry scare. Yum Brands, parent of Taco Bell, reported a 2% quarter-to-date same-store sales decline through July 27 and a roughly 5% share drop since the FDA linked it to the incident, though CFO Ranjith Roy said recent sales put Taco Bell halfway back to prior-year levels. Sweetgreen carries a short interest of 21.09% of its float, while Yum's short position is 3.12%.
Sweetgreen IncSweetgreen slashed its full-year same-store sales forecast to a 7-8% decline due to the Cyclospora outbreak, indicating reduced customer demand.
Yum! Brands IncYum Brands reported a 2% same-store sales decline at Taco Bell and a share drop after the FDA linked it to the outbreak, though recent sales show partial recovery.
