Sweetgreen (NYSE:SG) Shares Down 11.6% Following Weak Earnings

Shares of Sweetgreen, Inc. (NYSE:SG) fell 11.6% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $5.25 and last traded at $5.4250. 6,193,706 shares traded hands during mid-day trading, an increase of 43% from the average session volume of 4,328,424 shares. The stock had previously closed at $6.14.

The company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.31) by ($0.11). Sweetgreen had a negative return on equity of 31.09% and a negative net margin of 19.73%.The company had revenue of $155.19 million for the quarter, compared to analyst estimates of $159.59 million. During the same quarter in the prior year, the business posted ($0.25) earnings per share. The business’s revenue for the quarter was down 3.5% compared to the same quarter last year.

More Sweetgreen News

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Oppenheimer cut its price target to $9 (from $10) but kept an “outperform” rating, citing upside versus the current price. Oppenheimer PT Cut
• Positive Sentiment: Royal Bank of Canada lowered its target to $7 (from $8) while retaining an “outperform” view, signaling analysts still see recovery potential. RBC PT Cut
• Neutral Sentiment: Company filed its formal Q4/fiscal 2025 results and press release outlining the quarter’s metrics and management commentary. This is the source document for the market move. BusinessWire Q4 Release
• Neutral Sentiment: Earnings call transcript and highlights are available for investors digging into management’s plan and commentary on the turnaround. Earnings Call Highlights
• Negative Sentiment: Q4 EPS missed expectations: reported a loss of $0.42 vs. consensus -$0.31, and revenue of $155.2M missed the ~$159.6M estimate; revenue declined ~3.5% year-over-year. MarketBeat Q4 Summary
• Negative Sentiment: Company guided 2026 same-store sales to decline ~4% to 2% as it pursues menu innovation and operational changes — a sign management expects near-term pressure. Guidance/SSS Decline
• Negative Sentiment: Reports and call notes indicate a sharp drop in customer traffic in Q4 and missed sales expectations, underscoring the operational challenge of restoring visits. Traffic Drop
• Negative Sentiment: Press coverage highlights that sales fell despite price increases and turnaround efforts, suggesting margin and volume headwinds persist. WSJ Coverage

Analysts Set New Price Targets

Several research analysts have weighed in on the company. UBS Group dropped their target price on Sweetgreen from $7.50 to $6.50 and set a “neutral” rating on the stock in a research report on Monday. Sanford C. Bernstein set a $7.00 price target on Sweetgreen in a research note on Wednesday, January 7th. Zacks Research raised shares of Sweetgreen from a “strong sell” rating to a “hold” rating in a research report on Wednesday, November 12th. The Goldman Sachs Group lifted their target price on shares of Sweetgreen from $5.00 to $5.60 and gave the company a “sell” rating in a research note on Wednesday, January 28th. Finally, Royal Bank Of Canada decreased their target price on shares of Sweetgreen from $8.00 to $7.00 and set an “outperform” rating for the company in a research report on Friday. Three analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $8.43.

Hedge Funds Weigh In On Sweetgreen

Several large investors have recently added to or reduced their stakes in the company. Royal Bank of Canada raised its stake in shares of Sweetgreen by 22.4% in the first quarter. Royal Bank of Canada now owns 291,477 shares of the company’s stock valued at $7,292,000 after purchasing an additional 53,427 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Sweetgreen by 6.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,572 shares of the company’s stock valued at $1,516,000 after buying an additional 3,553 shares during the period. AlphaQuest LLC raised its stake in shares of Sweetgreen by 163,616.7% in the 2nd quarter. AlphaQuest LLC now owns 19,646 shares of the company’s stock valued at $292,000 after buying an additional 19,634 shares in the last quarter. Oppenheimer Asset Management Inc. lifted its holdings in shares of Sweetgreen by 31.3% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 50,973 shares of the company’s stock worth $758,000 after acquiring an additional 12,147 shares during the period. Finally, Nisa Investment Advisors LLC boosted its position in shares of Sweetgreen by 98.2% during the 2nd quarter. Nisa Investment Advisors LLC now owns 2,129 shares of the company’s stock valued at $32,000 after acquiring an additional 1,055 shares in the last quarter. Institutional investors and hedge funds own 95.75% of the company’s stock.

Sweetgreen Stock Performance

The firm has a market capitalization of $656.36 million, a price-to-earnings ratio of -4.86 and a beta of 1.92. The firm’s 50-day moving average price is $6.53 and its two-hundred day moving average price is $7.24.

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.