Sweetgreen CEO Says Cyclospora Hurt Sales

Summary

Sweetgreen CEO Jonathan Neman discusses the cyclospora outbreak's impact on sales, emphasizing that Sweetgreen does not serve the implicated iceberg lettuce and its supply chain was not affected. He highlights recovery signs, FDA safety clearance, and growth drivers including wraps, menu innovation, and national expansion. He also defends Sweetgreen's value and pricing strategy and details supply-chain transparency and traceability.

• Cyclospora outbreak hit July sales and fresh-produce demand broadly.
• Sweetgreen says its supply chain and customers were not implicated and it does not serve iceberg lettuce.
• FDA now says iceberg lettuce is safe; the CEO sees recovery beginning.
• Wraps launched recently now mix at about 20% of orders and drive transactions.
• Management sees long-term TAM for thousands of restaurants, with new Nashville and Phoenix stores performing well.
• Sweetgreen has taken 13% less price than peers since 2019 and does not plan broad price cuts.
• The company emphasizes farm-level transparency and traceability technology.