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Jim Cramer Reveals Why Sweetgreen, Inc. (SG) Is Struggling

We recently published Jim Cramer Just Couldn’t Stop Talking About These 13 Stocks. Sweetgreen, Inc. (NYSE:SG) is one of the stocks Jim Cramer recently discussed.

Sweetgreen, Inc. (NYSE:SG) is a fast food company whose shares are among the worst performers in 2025 as they have lost a stunning 71.6% year-to-date. The reason the shares have just been obliterated is Sweetgreen, Inc. (NYSE:SG)’s financial performance, which saw it cut guidance again in August. This guidance cut came as part of the firm’s second-quarter earnings report, which saw Sweetgreen, Inc. (NYSE:SG) miss analyst revenue and EPS estimates of $192 million and -$0.12 by posting $186 million and -$0.20. Crucially, the firm also cut full-year revenue guidance to a $707.5 million midpoint, which was a significant drop over its earlier guidance of $750 million. Cramer asserted that Sweetgreen, Inc. (NYSE:SG) is struggling due to high prices:

“They’re too high. Costs too much. Versus when you go to Brinker and you get that ten dollar burger with a three for me, they use top shelf. . .”

Pikoso.kz/Shutterstock.com

Previously, the CNBC TV host discussed Sweetgreen, Inc. (NYSE:SG)’s business environment:

“Sweetgreen and CAVA… Last week… the salad chain announced that its same-store sales had fallen by 7.6%. Wall Street was looking for a 5.5% decline. Sweetgreen lost 20 cents per share. The analysts were only looking for an 11-cent hit.

… To me, it’s pretty clear what’s going on. CAVA and Sweetgreen have to lower their prices or give us a couple of much lower-priced dishes if they want to turn things around. For now, they’re pricing themselves out of this American market. I get why they’re reluctant to cut prices. What business wants to lower margins?… The problem is, unlike McDonald’s, they’re either maybe too proud or too obtuse, I don’t know, to realize that the consumer’s gotten serious about avoiding high-priced foods, including theirs, even though the food is fresh and good.”

While we acknowledge the risk and potential of SG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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