By Yasin Ebrahim
Investing.com — Sweetgreen plunged in afterhours trading Tuesday after reporting quarterly results that fell short of Wall Street estimates and cutting its guidance.
Sweetgreen (NYSE:) fell more than 22% in afterhours trading following the report.
The salad chain a loss of 36 cents a share on revenue of $124.9 million. That compared with estimates for 30 cents a share on revenue of $130.2 million.
As part of plan to cut costs the company said it would shed about 5% of its workforce. The company also said it would reduce its real estate footprint by “vacating the premises for the existing sweetgreen Support Center and moving to a smaller office space adjacent to our existing location.”
Looking ahead, the company lower its guidance, citing a trend of softness in revenue around Memorial Day.
For 2022, revenue was estimates in a range of $480 million to $500 million, down from a prior estimate of $515 million to $535 million.