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Sweetgreen Cofounder Discusses Cyclospora Outbreak Impact

Sweetgreen Cofounder Discusses Cyclospora Outbreak Impact

Sweetgreen cofounder Nic Jammet, who also serves as the company's chief concept officer, detailed the significant impact of the summer's cyclospora outbreak on the salad chain's financial outlook and public perception. Despite Sweetgreen not sourcing iceberg lettuce from Mexico, the region identified by federal investigators as the source of the outbreak, the company experienced a substantial downturn in sales projections. In August, Sweetgreen revised its full-year outlook, forecasting a same-store sales decline of 7% to 8%, a sharp increase from its earlier projection of a 2% to 4% decrease. The Centers for Disease Control and Prevention (CDC) officially declared the cyclospora outbreak over on September 11. Jammet expressed concern that the widespread media coverage and messaging surrounding produce recalls this summer might inadvertently lead consumers to perceive highly processed foods as a safer alternative to fresh produce. He also observed instances of farmers tilling fields of greens back into the ground due to the prevailing fears. The outbreak occurred during a period when Sweetgreen was already undergoing a turnaround effort. Pre-pandemic sales patterns, driven by desk lunches, had not fully returned, and same-store sales had dropped 11.5% in 2025. However, the company's stock has shown resilience, gaining nearly 28% year-to-date as CEO Jonathan Neman implements a turnaround strategy focused on operational efficiency, marketing initiatives, menu adjustments, and strategic pricing. Evidence suggests a return of customer confidence. On September 28, Wells Fargo analyst Anthony Trainor upgraded Sweetgreen's stock, citing a recovery that exceeded expectations and pushing shares to their highest intraday level since the outbreak began in mid-July. Foot traffic data from Placer.ai further supported this recovery, indicating that Sweetgreen's average visits per location increased by 5.6% year-over-year between July 6 and September 11. In contrast, rival chain Chopt saw its average visits per location decrease by 7.7% during the same period. Jammet conveyed optimism about moving past the crisis, stating, "I feel like we’re on the other side of cyclospora, and the world has kind of moved on." He added, "At the end of the day, we moved past it, and so we’re excited to be on the other side of it." In a recent development, Sweetgreen announced on Tuesday the appointment of cookbook author Molly Baz as its first chef-in-residence, signaling a continued focus on culinary innovation and engagement.

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