The Clap Sweetgreen (NYSE: SG) lowered its forecast for 2022, causing its stock price to fall by around 24%.
The Deets Sweetgreen reported revenues of $124.9 million, lower than expectations, as well as losses of 36 cents per share.
The company also lowered its annual revenue forecast to $480 million- $500 million, down from $515 million-$535 million.
New Strategy? Sweetgreen will lay off 5% of its workforce, in addition to moving to a smaller office to reduce operating costs. The changes should have an impact on the profitability of the firm in Q3 2022.
The company is still recovering from COVID impacts and the main focus of management is to improve margins and become profitable before it can grow.