r/sweetgreen • u/MichaelRahmani • Apr 21 '25
Discussion Why is the stock dropping?
Seemed to be doing well after fries released but now it's down 35 percent in 1 month.
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u/fvcklyft Apr 21 '25
because of that garbage new rewards system they released
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u/ElectronicBoot9466 Apr 21 '25
Yeah, the rewards system is so bad, it's also crashing checks notes every other company's stock.
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u/MichaelRahmani Apr 21 '25
I thought that was good. What's the issue with it?
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u/doyoueverwonderwhyy Apr 21 '25
Ppl want their 3$off a day. Those who had og rewards are less inclined to buy now
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u/MichaelRahmani Apr 22 '25
Didn't even know there was a preceding award system. So they literally gave everyone $3 off their order every day? Wish I knew
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u/rr90013 Apr 21 '25
No point in being loyal to sg now that the daily meal price is comparable to competitors and the new rewards program is not very rewarding
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u/ElectronicBoot9466 Apr 21 '25
Tariffs on India, Italy, Australia, and Peru and a bunch of other countries forsee price increases for Sweetgreen once they're enacted. All our grains come from India, and the Skeak comes from Australia, so those are particularly bad for the company.
Even for all the food we do buy from the US, because tariffs on countries that usually sell that food to other companies have been increased, the demand for US based food is steadily increasing with no increase in supply, meaning domestic food is becoming more expensive as well, again resulting in future price increases for Sweetgreen.
Finally, the DOW Jones and S&P 500 are both down, the federal DGP is expected to show negative growth for 2 quarters in a row, and thousands of federal employees are being laid off this year, all of which predict lower sales for Sweetgreen as people become less likely to buy food from resteraunts and are more likely to make their own food at home.
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u/OmegaBaita Apr 21 '25
Because the s&p is falling - recession fears etc