Sweetgreen lowered its full-year 2026 guidance after a mid-July Cyclospora outbreak tied to iceberg lettuce hurt traffic across salad chains, overshadowing early traction from its newly launched wraps. The company said it does not use iceberg lettuce and has no indication from suppliers or health authorities that it is linked to the outbreak, but it still built the consumer fallout into a more conservative forecast. The revised outlook calls for comparable restaurant sales to decline 8% to 7%, restaurant-level profit margin of 10.5% to 11%, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) ranging from a $27 million loss to a $23 million loss. Sweetgreen estimated the disruption will cut full-year comparable sales by 200 to 300 basis points, reduce restaurant-level margin by 100 to 150 basis points, and lower adjusted EBITDA by $7 million to $10 million. The company reported second-quarter revenue of $192.7 million, up 4% from a year earlier, while comparable restaurant sales fell 6.2%. Wraps reached roughly a 20% incidence rate after their national launch and produced a 30-day return rate above the Harvest Bowl, historically Sweetgreen's strongest repeat-order item, with Chief Executive Officer Jonathan Neman saying they are helping attract new customers. Still, their lower price created a check and product-mix headwind, contributing to a 2% decline in transactions and a 4.2% decline in product mix in comparable sales, alongside promotions and a difficult comparison with last year's Ripple Fries launch. Restaurant-level profit fell to $25.2 million, or 13.1% of revenue, from an 18.9% margin a year earlier, and adjusted EBITDA swung to a loss of $200,000 from a $6.4 million profit. Sweetgreen ended the quarter with $142.6 million in cash and 287 restaurants, including 35 with Infinite Kitchen (store automation technology). Management said service speeds recovered after the wrap launch and that menu tests, dinner-focused protein plates and a redesigned Create Your Own format remain part of its growth plan.