Sweetgreen (NYSE:SG) Shares Gap Down Following Weak Earnings

Sweetgreen, Inc. (NYSE:SG) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $5.87, but opened at $5.43. Sweetgreen shares last traded at $5.1050, with a volume of 3,761,084 shares.

The company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.09). Sweetgreen had a negative return on equity of 33.07% and a net margin of 2.49%.The firm had revenue of $192.66 million for the quarter, compared to analyst estimates of $194.50 million. During the same period in the previous year, the company earned ($0.20) earnings per share. Sweetgreen’s revenue for the quarter was up 3.8% compared to the same quarter last year.

Sweetgreen News Summary

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Wells Fargo lowered its price target from $7 to $6 but maintained an “equal weight” rating, implying moderate potential upside from recent trading levels. Benzinga analyst action
• Neutral Sentiment: Sweetgreen’s quarterly revenue increased 3.8% year over year to $192.66 million, although growth was slightly below analysts’ expectations. The company’s market capitalization is approximately $620 million, and its shares remain near the lower end of their 52-week range.
• Negative Sentiment: TD Cowen cut its price target from $8 to $5 and downgraded its outlook to “hold,” signaling limited expected upside and reflecting concerns about near-term operating performance. Benzinga analyst action
• 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 reported a year earlier. Revenue also narrowly missed estimates. Sweetgreen second-quarter earnings
• Negative Sentiment: The company reduced its full-year same-store-sales outlook to a 7% to 8% decline as consumers became more cautious about eating fresh produce amid cyclosporiasis fears. The guidance cut indicates that the outbreak is affecting demand even without a direct link to Sweetgreen. Wall Street Journal outlook report CNBC outlook report
• Negative Sentiment: The outbreak-related demand concerns and forecast reduction have prompted a broad reassessment of Sweetgreen’s earnings prospects, weighing on the stock despite the company’s modest revenue growth. Reuters cyclosporiasis and forecast report

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on SG shares. TD Cowen lowered their target price on shares of Sweetgreen from $8.00 to $5.00 and set a “hold” rating on the stock in a report on Friday. BNP Paribas Exane increased their price objective on Sweetgreen from $4.50 to $5.00 and gave the stock an “underperform” rating in a research note on Friday, May 8th. Wall Street Zen upgraded Sweetgreen from a “strong sell” rating to a “sell” rating in a report on Saturday, May 23rd. Oppenheimer lifted their target price on Sweetgreen from $9.00 to $10.00 and gave the company an “outperform” rating in a research report on Wednesday, May 20th. Finally, Weiss Ratings upgraded Sweetgreen from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, May 22nd. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $7.47.

Hedge Funds Weigh In On Sweetgreen

Hedge funds have recently modified their holdings of the company. Larson Financial Group LLC grew its holdings in shares of Sweetgreen by 165.8% in the third quarter. Larson Financial Group LLC now owns 3,766 shares of the company’s stock valued at $30,000 after acquiring an additional 2,349 shares in the last quarter. Fifth Third Bancorp bought a new stake in Sweetgreen during the first quarter worth $38,000. CWM LLC boosted its position in Sweetgreen by 212.2% in the fourth quarter. CWM LLC now owns 7,333 shares of the company’s stock worth $50,000 after purchasing an additional 4,984 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in Sweetgreen by 281.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company’s stock worth $53,000 after purchasing an additional 5,839 shares during the last quarter. Finally, Onyx Bridge Wealth Group LLC bought a new position in Sweetgreen in the 1st quarter valued at $56,000. Institutional investors own 95.75% of the company’s stock.

Sweetgreen Stock Performance

The stock has a market cap of $609.00 million, a P/E ratio of 42.71 and a beta of 2.19. The business has a 50 day simple moving average of $7.75 and a 200-day simple moving average of $6.86.

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.