Sweetgreen cuts financial outlook amid cyclospora outbreak concerns

Sweetgreen has significantly reduced its full-year financial guidance following a multistate cyclospora outbreak that has impacted consumer demand for fresh prepared foods. The company revised its 2026 same-store sales projections to a contraction of 7% to 8%, a sharp increase from its previous forecast of a 2% to 4% decline. Additionally, Sweetgreen now expects an adjusted EBITDA loss between $23 million and $27 million, reversing prior expectations of earnings.

The outbreak, which the Centers for Disease Control and Prevention reports has affected at least 10,000 people and caused two deaths, has fueled widespread consumer wariness regarding fresh produce. While the Food and Drug Administration identified iceberg lettuce from a Taylor Farms facility in central Mexico as a likely source, Sweetgreen has not been directly implicated. Other companies, such as Chipotle Mexican Grill, have also reported sales impacts related to the outbreak.

Health officials continue to investigate several active cyclospora outbreaks. While the Taylor Farms-linked products have been recalled, five other active investigations currently have no identified food source. In North Carolina, officials are monitoring potential links to parsley and cilantro after confirming hundreds of cases.