Sweetgreen's second-quarter loss widened and the fast-casual salad chain lowered its outlook as the cyclosporiasis outbreak is weighing on demand.

The company now expects same-store sales to drop between 7% and 8%, compared with prior expectations of a decline between 2% and 4%, due to lower demand from the multistate cyclosporiasis outbreak.

The stock was down 16% to $4.93 in after-hours trading. The stock has traded about 28% lower in the past month.

For the quarter, Sweetgreen's loss widened to $26.3 million, or 22 cents a share, compared with a loss of $23.2 million, or 20 cents a share, a year earlier.

The wider loss was due to a decline in restaurant-level profit, though partially offset by lower expenses.

Revenue rose 3.8% to $192.7 million, driven by new restaurant openings. Analysts polled by FactSet expected $194.5 million.

Same-store sales fell 6.2%, compared with an estimated decline of 4%, as traffic declined 2%.

"Our results are not where they need to be, but the progress we saw in the second quarter reinforces our confidence that the plan is working," said Chief Executive Jonathan Neman. "Guests are responding to wraps, restaurant execution is improving, and transactions strengthened throughout the quarter."

Product mix fell 4.2% due to increased promotion activity, a shift in menu mix towards wraps and the removal of ripple fries.

The company opened 2 new restaurants in the quarter. For fiscal 2026, the company anticipates 13 new restaurant openings, with about half featuring Infinite Kitchen, Sweetgreen's robotic kitchen system.