Sweetgreen (NYSE:SG) Downgraded by Wall Street Zen to Strong Sell

Wall Street Zen downgraded shares of Sweetgreen (NYSE:SG) from a sell rating to a strong sell rating in a report issued on Saturday morning.

Several other research analysts have also recently issued reports on SG. UBS Group upgraded Sweetgreen from a “neutral” rating to a “buy” rating in a research report on Friday. Weiss Ratings raised shares of Sweetgreen from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, May 22nd. BNP Paribas Exane increased their price target on shares of Sweetgreen from $4.50 to $5.00 and gave the company an “underperform” rating in a report on Friday, May 8th. JPMorgan Chase & Co. upgraded shares of Sweetgreen from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $8.00 to $13.00 in a research note on Friday, May 22nd. Finally, Oppenheimer decreased their price target on Sweetgreen from $10.00 to $8.50 and set an “outperform” rating on the stock in a research note on Friday. Four investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $7.19.

Sweetgreen Trading Down 8.2%

Shares of SG opened at $5.39 on Friday. The stock’s 50 day moving average is $7.66 and its two-hundred day moving average is $6.85. Sweetgreen has a twelve month low of $4.49 and a twelve month high of $10.63. The firm has a market capitalization of $640.49 million, a PE ratio of 53.91 and a beta of 2.19.

Sweetgreen (NYSE:SG) last issued its earnings results on Thursday, August 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.09). The business had revenue of $192.66 million for the quarter, compared to analysts’ expectations of $194.50 million. Sweetgreen had a negative return on equity of 34.03% and a net margin of 2.01%.The business’s quarterly revenue was up 3.8% on a year-over-year basis. During the same period last year, the company posted ($0.20) earnings per share. On average, sell-side analysts predict that Sweetgreen will post -0.52 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Royal Bank of Canada lifted its stake in Sweetgreen by 22.4% in the 1st quarter. Royal Bank of Canada now owns 291,477 shares of the company’s stock valued at $7,292,000 after buying an additional 53,427 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Sweetgreen by 6.2% during the first 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. Prudential Financial Inc. acquired a new position in shares of Sweetgreen in the second quarter worth $197,000. Qube Research & Technologies Ltd acquired a new position in shares of Sweetgreen in the second quarter worth $538,000. Finally, Frontier Capital Management Co. LLC lifted its position in shares of Sweetgreen by 121.7% in the second quarter. Frontier Capital Management Co. LLC now owns 680,255 shares of the company’s stock valued at $10,122,000 after acquiring an additional 373,350 shares in the last quarter. 95.75% of the stock is currently owned by institutional investors and hedge funds.

Sweetgreen News Summary

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Second-quarter revenue increased 3.8% year over year to $192.66 million, indicating continued sales growth despite the challenging environment. Oppenheimer maintained an “outperform” rating, although it reduced its price target from $10 to $8.50. Oppenheimer lowers Sweetgreen price target
• Neutral Sentiment: Sweetgreen said it has not been implicated in the ongoing cyclospora outbreak, but consumer concerns about fresh produce are affecting traffic. The company removed jalapeños from its offerings amid the broader food-safety concerns. Sweetgreen cuts full-year outlook as cyclospora fears weigh on sales
• Negative Sentiment: Sweetgreen reported a second-quarter loss of $0.22 per share, wider than the $0.13 loss analysts expected and worse than the $0.20 loss a year earlier. Revenue also fell slightly short of estimates. Sweetgreen reports second-quarter loss and misses revenue estimates
• Negative Sentiment: Same-store sales declined 6.2% in the quarter, marking the chain’s sixth consecutive comparable-sales decline. Management now expects full-year same-store sales to fall 7%–8%, reflecting weaker customer demand linked to cyclospora fears. Sweetgreen shares slide as cyclosporiasis fears prompt forecast cut
• Negative Sentiment: Analysts lowered their valuations following the earnings release: Wells Fargo cut its target from $7 to $6, while TD Cowen reduced its target from $8 to $5 and assigned a “hold” rating. Analysts lower Sweetgreen price targets

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.