Sweetgreen (NYSE:SG) Releases Quarterly Earnings Results, Hits Estimates

Sweetgreen (NYSE:SG) released its earnings results on Thursday. The company reported ($0.26) earnings per share for the quarter, meeting the consensus estimate of ($0.26), FiscalAI reports. Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%. The company had revenue of $176.02 million during the quarter, compared to the consensus estimate of $170.07 million. During the same period in the previous year, the company posted ($0.31) EPS. Sweetgreen’s revenue was up 2.1% compared to the same quarter last year.

Here are the key takeaways from Sweetgreen’s conference call:

• Sales rebounded as the quarter progressed: October comparable sales rose about 5%, including 4% transaction growth, and management expects roughly 4% comparable-sales growth in Q4. Executives attributed the improvement to better restaurant execution, menu innovation, and returning lapsed customers, while noting there is still more work to do.
• Q3 comparable sales fell 6.4% and Restaurant-Level Profit Margin declined to 10.4% from 13.1% a year earlier; adjusted EBITDA was a loss of $6.8 million. For full-year 2026, Sweetgreen now expects comparable sales to be down about 5.5%, restaurant-level margins of 11%–11.5%, and an adjusted EBITDA loss of $20 million–$23 million.
• Management sees potential to improve restaurant-level margins through food-cost controls and more efficient labor deployment, estimating about 150 basis points of food-cost savings and a couple hundred basis points of labor-efficiency opportunity over time. These are targets, not realized savings, and the company said it will prioritize customer experience as it pursues them.
• Menu and customer-engagement initiatives are showing encouraging signs: wraps have attracted Gen Z customers and frequent repeat visits, loyalty redemptions are up 50%, and the company plans a renewed push for dinner-focused Plates. Management also cited stronger brand awareness and improving price-value perceptions.
• Sweetgreen plans to slow development in 2027, with net openings expected to be about half the 2026 level as it prioritizes existing restaurant economics, site selection, and returns on investment. The company said it expects to resume accelerating unit growth in later years if performance improves.

Sweetgreen Price Performance

Shares of Sweetgreen stock traded up $0.37 during trading on Friday, hitting $11.92. The stock had a trading volume of 12,911,641 shares, compared to its average volume of 4,465,237. The business has a fifty day moving average of $8.93 and a two-hundred day moving average of $7.31. Sweetgreen has a fifty-two week low of $4.49 and a fifty-two week high of $12.49. The firm has a market cap of $1.42 billion, a P/E ratio of 79.50 and a beta of 2.11.

Insider Activity at Sweetgreen

In other news, COO Jason Miles Cochran sold 4,809 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $6.21, for a total value of $29,863.89. Following the completion of the sale, the chief operating officer owned 207,076 shares in the company, valued at $1,285,941.96. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $93,354.93. Following the sale, the chief financial officer owned 210,489 shares of the company’s stock, valued at approximately $1,307,136.69. This represents a 6.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 18.19% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on SG shares. UBS Group boosted their target price on shares of Sweetgreen from $6.50 to $11.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 28th. Weiss Ratings downgraded shares of Sweetgreen from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, August 11th. TD Cowen raised their price target on shares of Sweetgreen from $9.00 to $11.00 and gave the stock a “hold” rating in a research note on Friday. Morgan Stanley increased their target price on Sweetgreen from $7.00 to $8.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 15th. Finally, Oppenheimer boosted their price target on Sweetgreen from $8.50 to $14.00 and gave the company an “outperform” rating in a research report on Friday. Six analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $9.88.

Key Headlines 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

Sweetgreen Company Profile

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.