Sweetgreen (NYSE:SG) Announces Quarterly Earnings Results

Sweetgreen (NYSE:SG) released its quarterly earnings data on Thursday. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.09), FiscalAI reports. Sweetgreen had a negative return on equity of 34.03% and a net margin of 2.01%.The business had revenue of $192.66 million during the quarter, compared to analysts’ expectations of $194.50 million. During the same quarter in the previous year, the company posted ($0.20) EPS. The company’s revenue was up 3.8% compared to the same quarter last year.

Here are the key takeaways from Sweetgreen’s conference call:

• Second-quarter performance weakened: Comparable restaurant sales declined 6.2%, restaurant-level margin fell to 13.1% from 18.9% a year earlier, and adjusted EBITDA turned to a $0.2 million loss.
• Food-safety headlines disrupted momentum and lowered guidance. Management estimated the Cyclospora-related impact at roughly 600 basis points to July comparable sales and now expects fiscal 2026 comparable sales to decline 7%–8%, restaurant-level margin of 10.5%–11%, and adjusted EBITDA of negative $23 million to $27 million.
• Operational trends improved through the quarter: Comparable transactions progressed from down 11.2% in Q1 to roughly flat in June, while throughput initiatives lifted peak entrees prepared per hour at high-volume restaurants from the low 50s to the low 60s.
• Wraps are driving engagement but pressuring average checks. They reached approximately 20% incidence, increased transaction trends and repeat visits, and appealed to Gen Z customers, but their lower entry price contributed to product-mix pressure; management plans additional wrap innovation and broader customer-acquisition efforts.
• Management is pursuing targeted growth and efficiency initiatives: These include broader top-of-funnel marketing, loyalty personalization, a simplified create-your-own pricing test, food-waste reduction, restaurant-specific labor deployment, and conservative new-unit development focused on higher-return sites.

Sweetgreen Trading Down 8.2%

Shares of SG stock traded down $0.48 during trading hours on Friday, hitting $5.39. The company’s stock had a trading volume of 17,399,888 shares, compared to its average volume of 6,390,480. The business has a fifty day moving average of $7.66 and a 200-day moving average of $6.85. The stock has a market cap of $640.49 million, a price-to-earnings ratio of 53.91 and a beta of 2.19. Sweetgreen has a twelve month low of $4.49 and a twelve month high of $10.63.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SG. Woodson Capital Management LP lifted its stake in Sweetgreen by 152.6% in the 4th quarter. Woodson Capital Management LP now owns 6,000,000 shares of the company’s stock valued at $40,560,000 after buying an additional 3,625,000 shares in the last quarter. Marshall Wace LLP increased its position in Sweetgreen by 1,428.8% during the third quarter. Marshall Wace LLP now owns 3,923,973 shares of the company’s stock worth $31,313,000 after buying an additional 3,667,306 shares in the last quarter. Federated Hermes Inc. increased its position in Sweetgreen by 366.8% during the fourth quarter. Federated Hermes Inc. now owns 2,647,899 shares of the company’s stock worth $17,900,000 after buying an additional 2,080,628 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Sweetgreen by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 2,453,564 shares of the company’s stock worth $16,589,000 after acquiring an additional 16,281 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Sweetgreen by 38.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,861,413 shares of the company’s stock worth $12,583,000 after acquiring an additional 517,901 shares during the last quarter. 95.75% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have recently weighed in on SG. Weiss Ratings raised shares of Sweetgreen from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, May 22nd. UBS Group reiterated a “buy” rating on shares of Sweetgreen in a research note on Friday. Citigroup decreased their price target on Sweetgreen from $10.00 to $8.00 and set a “buy” rating on the stock in a research note on Friday. Wells Fargo & Company lowered their price target on Sweetgreen from $7.00 to $6.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, DA Davidson raised their price objective on Sweetgreen from $5.50 to $7.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. Four research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $7.19.

Trending Headlines about Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Second-quarter revenue increased 3.8% year over year to $192.66 million, indicating continued sales growth despite the challenging environment. Oppenheimer maintained an “outperform” rating, although it reduced its price target from $10 to $8.50. Oppenheimer lowers Sweetgreen price target
• Neutral Sentiment: Sweetgreen said it has not been implicated in the ongoing cyclospora outbreak, but consumer concerns about fresh produce are affecting traffic. The company removed jalapeños from its offerings amid the broader food-safety concerns. Sweetgreen cuts full-year outlook as cyclospora fears weigh on sales
• Negative Sentiment: Sweetgreen reported a second-quarter loss of $0.22 per share, wider than the $0.13 loss analysts expected and worse than the $0.20 loss a year earlier. Revenue also fell slightly short of estimates. Sweetgreen reports second-quarter loss and misses revenue estimates
• Negative Sentiment: Same-store sales declined 6.2% in the quarter, marking the chain’s sixth consecutive comparable-sales decline. Management now expects full-year same-store sales to fall 7%–8%, reflecting weaker customer demand linked to cyclospora fears. Sweetgreen shares slide as cyclosporiasis fears prompt forecast cut
• Negative Sentiment: Analysts lowered their valuations following the earnings release: Wells Fargo cut its target from $7 to $6, while TD Cowen reduced its target from $8 to $5 and assigned a “hold” rating. Analysts lower Sweetgreen price targets

About Sweetgreen

Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company’s menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.