Sweetgreen Shares Tumble After Ripple Fries Fail to Thrill

(Bloomberg) – Sweetgreen Inc. stops Ripple Fries, a menu element in which customers can feel good after just five months.

The movement comes because the chain reserves a second three -month sales drop in a row. Stocks fell 23% on Friday in New York for the biggest decline in the record.

Sweetgreen’s potatoes were to appeal to customers looking for a healthier option than other restaurants. They fried and despite limited evidence that they were damaging, they were made with avocado oil instead of seed oils that became the target of US Health Secretary Robert F. Kennedy Jr..

However, without a McDonald’s frying volume, Sweetgreen’s potatoes would usually sit on the counter and have fresh taste. Many customers, who were drawn to the chain for salad and healthy food, did not come to the restaurant for the $ 4.95 -dollar -french fries, promised that the company would “redefine fast food”.

Sweetgreen, customers love potatoes, but CEO Jonathan Neman said in a statement with analysts on Thursday, said they added a lot of complexity to restaurant operations.

“From next week, we will stop Ripple Fries to focus on our seed,” he said.

Salad chain operations are struggling to improve operations and withdraw listeners into $ 15 salads and bowls.

On Thursday, the chain decreased sales guidance after a decrease of 7.6% in the second quarter comparable sales of restaurants. The company predicts that sales in open restaurants for at least one year will fall between 4% and 6% this year, which will be flat from the previous expectations that the measure will be flat.

The stock had lost about 61% of its value this year until Thursday, compared to a decrease of less than 1% for the Russell 2000 index.

Sweetgreen said that the withdrawal of sales is more pronounced in many of the company’s big urban markets and how they perceive the value of customers’ food.

In May 2024, the chain launched a steak as a protein option that eats and increases sales numbers thanks to the higher price tag. According to the company, this time traffic fell and people went to cheaper alternatives.

Neman said that comparable sales have so far healed in the third quarter. Chain increased chicken and Tofu sections by 25%, raised some recipes to improve taste and quality, and launched $ 13 limited proposals.

In July, he re -introduced the seasonal menu after finding that innovation appeals to customers. He also launched a new loyalty program to attract people.

-Help from Tonia Garcia.

(Updates with the price of closing in the second paragraph.)

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