Sweetgreen is set to report second-quarter earnings after the market closes on Thursday, and the results could send the stock soaring. The company launched wraps nationally in May, which appear to be resonating with customers by offering a cheaper handheld option and driving foot traffic. Same-store sales could turn positive as Sweetgreen laps the quarter when it replaced its loyalty program, and data from Placer.ai shows overall foot traffic rose 22.7% year over year. With the stock down 86% from its late 2024 peak and 22% of the float sold short, a strong report could trigger a short squeeze. The company guided to a full-year same-store sales decline of 2% to 4%, implying a significant improvement from the 12.8% drop in the first quarter.
Sweetgreen IncNational launch of wraps and positive foot traffic data suggest improving customer demand.