Sweetgreen (NYSE:SG) Announces Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Sweetgreen (NYSE:SG) issued its earnings results on Thursday. The company reported ($0.42) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.10), FiscalAI reports. The business had revenue of $155.19 million during the quarter, compared to analysts’ expectations of $159.59 million. Sweetgreen had a negative return on equity of 25.67% and a negative net margin of 16.55%.

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

• For FY2025 revenue was $679.5M and Q4 sales were $155.2M with comparable sales down 11.5% in Q4 (FY comps -7.9%), restaurant-level margin compressed sharply to 10.4% in Q4 versus 17.4% a year ago, and Q4 adjusted EBITDA was a loss of $13.3M and net loss $49.7M.
• Management is executing a five?point Sweet Growth Transformation Plan with an emphasis on operational excellence (Project One Best Way), and reports ~two?thirds of restaurants now meeting their “great” standard with improved throughput and scorecard visibility.
• Product innovation momentum is building — the company has its largest innovation pipeline ever, is testing wraps in a multi?market pilot (priced under $15) with encouraging early results and a potential mid?2026 rollout if stage?gate criteria are met.
• Technology and portfolio moves are intended to boost unit economics — Infinite Kitchen locations are delivering higher AAVs and >700 bps labor savings versus classic stores, and the early 2026 sale of Spyce generated $100M in cash to bolster liquidity.
• 2026 guidance assumes same?store sales down -4% to -2% with restaurant?level margin of 14.2%–14.7% and adjusted EBITDA of $1M–$6M, about 15 net new restaurants planned (nearly half with Infinite Kitchen), and management expects trends to improve through the year after a weather?impacted Q1.

Sweetgreen Stock Performance

Shares of SG traded up $0.29 during mid-day trading on Thursday, reaching $6.15. The stock had a trading volume of 7,932,459 shares, compared to its average volume of 4,288,361. The firm has a market cap of $728.00 million, a price-to-earnings ratio of -6.34 and a beta of 1.92. Sweetgreen has a 12 month low of $4.99 and a 12 month high of $27.15. The business has a fifty day moving average of $6.57 and a 200 day moving average of $7.28.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Morgan Stanley lowered their price objective on shares of Sweetgreen from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 20th. UBS Group dropped their price target on Sweetgreen from $7.50 to $6.50 and set a “neutral” rating on the stock in a research note on Monday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Sweetgreen in a research report on Monday, December 29th. Wells Fargo & Company downgraded Sweetgreen from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $10.00 to $7.00 in a report on Wednesday, December 17th. Finally, Piper Sandler dropped their target price on Sweetgreen from $12.00 to $9.00 and set a “neutral” rating on the stock in a research report on Friday, November 7th. Three analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Sweetgreen currently has a consensus rating of “Hold” and an average price target of $10.76.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Mariner LLC bought a new stake in Sweetgreen during the fourth quarter valued at about $143,000. Commonwealth Equity Services LLC purchased a new position in Sweetgreen in the 4th quarter worth approximately $142,000. VARCOV Co. purchased a new stake in Sweetgreen during the 4th quarter valued at approximately $141,000. WINTON GROUP Ltd bought a new stake in shares of Sweetgreen during the fourth quarter valued at approximately $127,000. Finally, Credit Agricole S A bought a new position in shares of Sweetgreen during the third quarter worth $118,000. Institutional investors own 95.75% of the company’s stock.

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.