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

Sweetgreen, Inc. (NYSE:SG)’s stock price dropped 11.6% on Friday following a weaker than expected earnings announcement. The company traded as low as $5.25 and last traded at $5.4250. Approximately 6,193,706 shares changed hands during mid-day trading, an increase of 43% from the average daily volume of 4,328,424 shares. The stock had previously closed at $6.14.

The company reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.31) by ($0.11). Sweetgreen had a negative net margin of 16.55% and a negative return on equity of 25.67%. The business had revenue of $155.19 million during the quarter, compared to analyst estimates of $159.59 million. During the same quarter in the previous year, the firm posted ($0.25) earnings per share. The firm’s quarterly revenue was down 3.5% on a year-over-year basis.

Sweetgreen News Roundup

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Management outlined a 2026 transformation plan that emphasizes menu innovation and operational improvements aimed at restoring traffic and margins — a potential multi-quarter catalyst if execution accelerates recovery. Article Title
• Neutral Sentiment: Royal Bank of Canada cut its price target from $8 to $7 but maintained an “outperform” rating — signaling that while near-term views were trimmed, analysts still see upside vs. current levels. Article Title
• Neutral Sentiment: Oppenheimer lowered its price target from $10 to $9 and also kept an “outperform” rating, reflecting reduced near-term expectations but continued conviction in a recovery scenario. Article Title
• Negative Sentiment: Q4 results missed: EPS of ($0.42) vs. ($0.31) expected and revenue of $155.2M vs. ~$159.6M est. Revenue fell 3.5% year-over-year and the company reported a negative net margin and ROE, which heightens near-term profit concerns. Article Title
• Negative Sentiment: Traffic and same-store-sales weakness: Management disclosed steep traffic declines in Q4 and gave 2026 same-store-sales guidance of a 4% to 2% decline, underscoring a near-term demand challenge for the brand. Article Title
• Negative Sentiment: Media coverage frames the results as a reality check for fast-casual concepts after peers rallied, highlighting that price increases and turnaround steps have not yet restored growth — increased investor skepticism may pressure the stock near term. Article Title

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Sweetgreen in a report on Monday, December 29th. Wells Fargo & Company downgraded shares of Sweetgreen from an “overweight” rating to an “equal weight” rating and reduced their price objective for the company from $10.00 to $7.00 in a research report on Wednesday, December 17th. William Blair reiterated a “market perform” rating on shares of Sweetgreen in a research note on Friday, November 7th. Oppenheimer decreased their price objective on Sweetgreen from $10.00 to $9.00 and set an “outperform” rating on the stock in a research report on Friday. Finally, Barclays upped their price target on shares of Sweetgreen from $5.00 to $7.00 and gave the stock an “equal weight” rating in a research report on Wednesday, January 7th. Three analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $8.43.

Institutional Trading of Sweetgreen

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

Sweetgreen Price Performance

The stock has a market capitalization of $642.39 million, a price-to-earnings ratio of -5.59 and a beta of 1.92. The firm has a 50 day simple moving average of $6.55 and a 200-day simple moving average of $7.27.

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.