Sweetgreen shares drop 10% as salad sales fall amid cyclospora fears and jalapeño recall.

Sweetgreen's shares fell 10% after the company reported a sharp decline in salad sales due to consumer fears of a cyclospora outbreak and a voluntary jalapeño recall linked to a salmonella outbreak. The company cut its full-year EBITDA loss forecast to $23-27 million, worse than the previous $1-6 million estimate, and expects same-store sales to drop 7-8%. Despite no direct link to the cyclospora outbreak, which has affected thousands nationwide, consumer demand for fresh salads remains weak. The jalapeño recall affects only a small part of Sweetgreen's menu, but the overall impact on sales and recovery timing remains uncertain.