Sweetgreen Inc. shares saw a significant drop after the announcement of a wider loss than expected for the third quarter. This loss was due to increased labor and protein costs.

The salad-focused restaurant chain reported a loss of 18 cents per share, which was four cents higher than analysts' predictions. The company stated that wage increases in different markets contributed to the financial shortfall.

Since becoming a publicly traded company in 2021, Sweetgreen has not yet achieved profitability, causing concerns among investors about its ability to sustain itself financially given the rising operational costs.