Sweetgreen (NYSE:SG) Shares Down 11.6% After Earnings Miss

Sweetgreen, Inc. (NYSE:SG) traded down 11.6% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $5.25 and last traded at $5.4250. 6,193,706 shares were traded during 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 analysts’ consensus estimates of ($0.31) by ($0.11). Sweetgreen had a negative net margin of 19.73% and a negative return on equity of 31.09%. The company had revenue of $155.19 million during the quarter, compared to the consensus estimate of $159.59 million. During the same quarter last year, the firm posted ($0.25) EPS. The company’s quarterly revenue was down 3.5% on a year-over-year basis.

Sweetgreen News Summary

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

A number of equities research analysts have recently commented on SG shares. The Goldman Sachs Group upped their price objective 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. JPMorgan Chase & Co. upped their price target on shares of Sweetgreen from $6.00 to $8.00 and gave the company a “neutral” rating in a research report on Tuesday, January 20th. Sanford C. Bernstein set a $7.00 price target on Sweetgreen in a report on Wednesday, January 7th. Barclays lifted their price objective on Sweetgreen from $5.00 to $7.00 and gave the stock an “equal weight” rating in a research report on Wednesday, January 7th. Finally, Piper Sandler cut 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 equities research 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’s stock. According to MarketBeat, Sweetgreen has a consensus rating of “Hold” and a consensus target price of $8.43.

Hedge Funds Weigh In On Sweetgreen

Several institutional investors have recently made changes to their positions in SG. Marshall Wace LLP grew its stake in shares of Sweetgreen by 1,428.8% in the 3rd quarter. Marshall Wace LLP now owns 3,923,973 shares of the company’s stock valued at $31,313,000 after buying an additional 3,667,306 shares during the period. Woodson Capital Management LP grew its stake in Sweetgreen by 152.6% in the fourth quarter. Woodson Capital Management LP now owns 6,000,000 shares of the company’s stock valued at $40,560,000 after acquiring an additional 3,625,000 shares during the period. Greenhouse Funds LLLP bought a new stake in shares of Sweetgreen during the second quarter valued at approximately $32,122,000. Federated Hermes Inc. increased its holdings in shares of Sweetgreen by 366.8% during the fourth quarter. Federated Hermes Inc. now owns 2,647,899 shares of the company’s stock valued at $17,900,000 after acquiring an additional 2,080,628 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its position in shares of Sweetgreen by 240.9% during the third quarter. BNP Paribas Financial Markets now owns 1,692,838 shares of the company’s stock worth $13,509,000 after purchasing an additional 1,196,222 shares during the period. Institutional investors and hedge funds own 95.75% of the company’s stock.

Sweetgreen Stock Performance

The business has a fifty day moving average of $6.53 and a 200-day moving average of $7.23. The company has a market capitalization of $656.36 million, a P/E ratio of -4.86 and a beta of 1.92.

Sweetgreen Company Profile

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.