Sweetgreen (NYSE:SG) Issues Earnings Results

Sweetgreen (NYSE:SG) issued its earnings results on Friday. The company reported ($0.26) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.26), FiscalAI reports. The firm had revenue of $176.02 million for the quarter, compared to analysts’ expectations of $170.07 million. Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%. The company’s revenue was up 2.1% compared to the same quarter last year. During the same quarter last year, the business earned ($0.31) earnings per share.

Sweetgreen Trading Up 3.2%

NYSE:SG traded up $0.37 on Friday, hitting $11.92. The company had a trading volume of 12,911,641 shares, compared to its average volume of 5,103,324. The stock has a market capitalization of $1.42 billion, a price-to-earnings ratio of 119.25 and a beta of 2.11. The firm has a 50 day moving average of $8.83 and a two-hundred day moving average of $7.28. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $12.49.

Insiders Place Their Bets

In other news, COO Jason Miles Cochran sold 4,809 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $6.21, for a total transaction of $29,863.89. Following the completion of the transaction, the chief operating officer directly owned 207,076 shares in the company, valued at approximately $1,285,941.96. This represents a 2.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jamie McConnell sold 15,033 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $6.21, for a total value of $93,354.93. Following the completion of the transaction, the chief financial officer owned 210,489 shares of the company’s stock, valued at $1,307,136.69. The trade was a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 18.19% of the company’s stock.

Key Stories Impacting Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Sweetgreen reported Q3 revenue of $176.0 million, up 2.1% year over year and above the roughly $170 million consensus estimate. Its $0.26-per-share loss was in line with consensus and narrower than the year-earlier loss. Same-store sales fell 6.4%, an improvement from a 9.5% decline a year ago. Sweetgreen Q3 results
• Positive Sentiment: Several firms raised their targets: Oppenheimer and Wells Fargo moved to $14, while KeyCorp raised its target to $13; all maintained bullish ratings. The revisions may bolster confidence following the earnings release. Oppenheimer rating Wells Fargo rating KeyCorp rating
• Neutral Sentiment: TD Cowen raised its target from $9 to $11 but kept a Hold rating; its new target remains below the stock’s recent trading level. TD Cowen rating
• Negative Sentiment: Despite improvement, same-store sales remained negative and overall revenue growth was modest. Reports tie the sales pressure to the Cyclospora outbreak, leaving investors focused on whether the recovery can continue. Same-store sales and outbreak recovery

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Oppenheimer lifted their price objective on shares of Sweetgreen from $8.50 to $14.00 and gave the stock an “outperform” rating in a research note on Friday. TD Cowen boosted their price objective on shares of Sweetgreen from $9.00 to $11.00 and gave the company a “hold” rating in a report on Friday. Wells Fargo & Company upped their target price on shares of Sweetgreen from $11.00 to $14.00 and gave the company an “overweight” rating in a research note on Friday. UBS Group increased their target price on shares of Sweetgreen from $6.50 to $11.00 and gave the stock a “neutral” rating in a report on Wednesday, October 28th. Finally, KeyCorp increased their target price on shares of Sweetgreen from $12.00 to $13.00 and gave the stock an “overweight” rating in a report on Friday. Six research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $9.88.

About Sweetgreen

Sweetgreen, Inc operates a fast-casual restaurant company focused on fresh, customizable meals. Its menu includes salads, grain bowls, protein plates, sides, and beverages made with seasonal produce and other ingredients. Customers can order in restaurants or through Sweetgreen’s website and mobile application, with options for pickup and delivery.

Founded in 2007 by Nicolas Jammet, Jonathan Neman, and Nathaniel Ru, Sweetgreen began as a single restaurant in Washington, DC The company has expanded its restaurant network across metropolitan areas in the United States, with locations concentrated in major markets on the East and West coasts and in other regions.