Sweetgreen’s Struggle: Can the Salad Giant Survive Its Post-IPO Slump?

Sweetgreen’s Tough Reality: Can the Salad Pioneer Still Win Back Wall Street?

When Sweetgreen opened its first store in 2007, it redefined fast food. Three Georgetown University students had one radical idea — healthy food could be fast, fresh, and accessible. Their dream caught fire. For urban office workers, Sweetgreen became more than a lunch stop; it was a lifestyle statement — “clean eating on the go.”

But in 2025, the story looks far less green.

The Fall After the Hype

The company has never turned a profit, reporting a $90 million net loss in 2024

Since going public in 2021, Sweetgreen’s journey on Wall Street has been a bumpy one. The company has never turned a profit, reporting a $90 million net loss in 2024. Its stock, once a symbol of health-food success, now trades around $5.55 — down more than 80% in 2025 alone. Even worse, same-store sales — the heartbeat metric of restaurant performance — have fallen for two consecutive quarters, signaling a deeper problem beneath the surface.

It’s been a bruising year across the restaurant industry, and Sweetgreen hasn’t escaped the pain. Inflation, rising labor costs, and now tariffs have chipped away at its margins. Once the darling of healthy dining, the brand is struggling to stay relevant as investors grow impatient.

From Campus Dream to National Name

Sweetgreen’s story began in Washington, D.C., when its founders scraped together $300,000 from friends, family, and early venture capital to bring fresh greens to busy professionals. Their digital-first mindset made them pioneers of mobile ordering and pre-scheduled pickup — years ahead of the industry. By the time the pandemic struck, Sweetgreen’s tech-driven model gave it an edge, with digital sales surging 17%.

Sweetgreen grow to 140 locations in 13 states by the time it went public in November 2021, raising $364 million.

When office foot traffic collapsed during lockdowns, the company shifted gears — acquiring Spyce, a restaurant tech startup, for $70 million to boost automation and expand into suburban areas. This agility helped Sweetgreen grow to 140 locations in 13 states by the time it went public in November 2021, raising $364 million. Its founders boldly declared:

“We want to build the McDonald’s of our generation.”

On IPO day, Sweetgreen shares soared 76%. But that initial euphoria faded fast.

Post-IPO Growing Pains

Reality hit hard. Sweetgreen’s stock quickly fell below its offering price and never recovered. Both the company and investors underestimated two massive challenges — post-pandemic inflation and the slow comeback of office workers. Meanwhile, new suburban stores struggled due to weak brand awareness.

A digital illustration of Wall Street with a Sweetgreen showing the company’s stock volatility and profitability challenges after going public.

Ironically, the same suburban locations that once alarmed Wall Street later became some of Sweetgreen’s fastest-growing spots. Still, that didn’t erase mounting losses or missed earnings estimates.

To recover, Sweetgreen added new proteins, improved efficiency, and leaned further into automation with its “Infinite Kitchens” concept. The changes briefly reignited optimism — the stock neared $50 in late 2024 — but the rebound was short-lived.
By Q3 2025, same-store sales dropped again, traffic fell 11.7%, and losses deepened. In a cost-cutting move, Sweetgreen laid off 10% of its workforce and sold Spyce to restaurant tech company Wonder for a mix of cash and stock. The sale included a licensing deal, allowing Sweetgreen to keep using Spyce’s automation in its restaurants.

The Bigger Problem: Not the Stores, but the System

Sweetgreen’s expansion plan from 260 to 1,000 restaurant locations by 2030

Analysts say Sweetgreen’s core stores are profitable — the real drag is corporate overhead. The brand is currently expanding from 260 locations to a bold 1,000 by 2030. But compared to Kava’s 400+ and Chipotle’s 3,700+, that goal comes with enormous cost and risk.

“The only way to hit profitability is scale,” said one analyst. “But scaling is expensive — especially in an economy like this.”

Sweetgreen has a few advantages: no long-term debt, cash reserves, and now $186 million in assets from the Spyce sale. But investors are skeptical. The chain promised to be profitable by 2024 — it’s now late 2025, and inflation, tariffs, and tough competition from other salad and bowl brands have made that dream more distant.

A Pricey Salad in a Price-Sensitive Market

Sweetgreen’s biggest challenge might be its customers. Its bowls cost $14 to $25, even after a 25% increase in chicken and tofu portions. Its young, urban demographic faces job insecurity and inflation — meaning fewer are splurging on premium salads.

As one analyst put it:

“If you’re living in your parents’ basement, you’re not spending $18 on a salad — and you’ll notice if there’s not enough chicken in the bowl.”

The Road Ahead

Despite the setbacks, Sweetgreen’s leadership remains focused on growth. With automation improving efficiency and potential for better margins, the company still holds long-term promise. The real question is whether it can survive long enough to see it.

Some experts suggest a strategic slowdown — fewer new openings, sharper focus on profitability, and rebuilding investor confidence before chasing massive expansion.

Because right now, for Sweetgreen, the mission isn’t about being the McDonald’s of healthy food.
It’s about proving that a visionary idea can still thrive in a harsh economic climate — and that the future of fast food might yet be green again.