Sweetgreen falls 10% as latest victim of cyclospora fears, removes jalapeos over second outbreak

Between hellacious jalapeños and lamentable lettuce, salad-centric chains are getting slammed.The latest victim is Sweetgreen, shares of which fell 10% Friday after the “slop bowl” chain said diners are avoiding its salads over fears of a cyclospora outbreak and removed jalapeño peppers from its restaurants due to a separate string of illnesses.In its earnings report Thursday evening, Sweetgreen slashed its full-year forecast to an adjusted loss before interest, taxes, depreciation and amortization of $27 million to $23 million – much deeper than its previous estimate of $1 million to $6 million.The company also said it expects its annual same-store sales could shrink 7% to 8% this year, worse than a previous forecast of a 2% to 4% decline.“The company’s updated outlook reflects reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis since mid-July,” Sweetgreen said in a statement.“The pace and timing of recovery remain uncertain.”For the second quarter ending June 28, Sweetgreen’s same-store sales fell 6.2% – its sixth straight decline.The stock has plunged roughly 30% since mid-July as fearful diners avoid salads and fresh produce over fears of cyclospora, an explosive diarrhea-causing parasite – even though Sweetgreen and its products have not been linked to the outbreak.But it seems Sweetgreen’s outbreak troubles are not yet behind the salad chain, as it revealed on Thursday that it removed jalapeños from its supply chain earlier this week amid a new salmonella outbreak.“In a separate and unrelated matter, a voluntary recall involving jalapeños was issued yesterday.As an added precaution, we proactively removed and discarded all jalapeño from the supplier in the affected areas,” CEO Jonathan Neman said during an earnings call Thursday.“Jalapeños are used in only two of our 15 dressings and nowhere else on our menu, representing a very small portion of our sales mix.

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