Sweetgreen (NYSE:SG) Posts Earnings Results, Misses Estimates By $0.11 EPS

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

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

• For FY2025 revenue was $679.5M and Q4 sales were $155.2M with comparable sales down 11.5% in Q4 (FY comps -7.9%), restaurant-level margin compressed sharply to 10.4% in Q4 versus 17.4% a year ago, and Q4 adjusted EBITDA was a loss of $13.3M and net loss $49.7M.
• Management is executing a five‑point Sweet Growth Transformation Plan with an emphasis on operational excellence (Project One Best Way), and reports ~two‑thirds of restaurants now meeting their “great” standard with improved throughput and scorecard visibility.
• Product innovation momentum is building — the company has its largest innovation pipeline ever, is testing wraps in a multi‑market pilot (priced under $15) with encouraging early results and a potential mid‑2026 rollout if stage‑gate criteria are met.
• Technology and portfolio moves are intended to boost unit economics — Infinite Kitchen locations are delivering higher AAVs and >700 bps labor savings versus classic stores, and the early 2026 sale of Spyce generated $100M in cash to bolster liquidity.
• 2026 guidance assumes same‑store sales down -4% to -2% with restaurant‑level margin of 14.2%–14.7% and adjusted EBITDA of $1M–$6M, about 15 net new restaurants planned (nearly half with Infinite Kitchen), and management expects trends to improve through the year after a weather‑impacted Q1.

Sweetgreen Price Performance

Shares of Sweetgreen stock opened at $6.15 on Friday. The firm has a market cap of $727.98 million, a P/E ratio of -6.34 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. Sweetgreen has a fifty-two week low of $4.99 and a fifty-two week high of $27.15.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Wells Fargo & Company cut Sweetgreen from an “overweight” rating to an “equal weight” rating and dropped their target price for the stock from $10.00 to $7.00 in a report on Wednesday, December 17th. The Goldman Sachs Group upped their price target on Sweetgreen from $5.00 to $5.60 and gave the company a “sell” rating in a research report on Wednesday, January 28th. Oppenheimer set a $10.00 price objective on Sweetgreen in a research note on Friday, November 7th. JPMorgan Chase & Co. boosted their target price on shares of Sweetgreen from $6.00 to $8.00 and gave the company a “neutral” rating in a research note on Tuesday, January 20th. Finally, Piper Sandler dropped their target price on shares of Sweetgreen from $12.00 to $9.00 and set a “neutral” rating for the company in a research report on Friday, November 7th. Three investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $8.58.

Hedge Funds Weigh In On Sweetgreen

Large investors have recently made changes to their positions in the company. Invesco Ltd. boosted its holdings in Sweetgreen by 23.9% in the fourth quarter. Invesco Ltd. now owns 134,511 shares of the company’s stock valued at $909,000 after acquiring an additional 25,921 shares during the last quarter. VARCOV Co. acquired a new position in Sweetgreen during the 4th quarter valued at about $141,000. Twinbeech Capital LP bought a new position in shares of Sweetgreen in the 4th quarter valued at about $606,000. Engineers Gate Manager LP acquired a new stake in shares of Sweetgreen during the 4th quarter worth approximately $711,000. Finally, First Manhattan CO. LLC. raised its stake in shares of Sweetgreen by 174.4% during the fourth quarter. First Manhattan CO. LLC. now owns 532,630 shares of the company’s stock worth $3,601,000 after buying an additional 338,500 shares during the last quarter. Institutional investors and hedge funds own 95.75% of the company’s stock.

Key Stories Impacting Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Management emphasizes a fast-moving transformation plan to stabilize the business, which may reassure investors who believe operational fixes can restore traffic and margins. Sweetgreen Sales Fall Despite Price Hikes, Turnaround Efforts
• Positive Sentiment: Company press release restated results and highlighted the fiscal actions and strategy updates being implemented as part of the turnaround, giving investors specific steps to watch. Sweetgreen, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Earnings call transcript is available for investors wanting management commentary and Q&A (useful for judging the credibility of the turnaround timeline). Sweetgreen (SG) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analysts’ metric breakdowns (traffic, AUV, margins) are being updated — useful context but not new headline surprises beyond the release. Sweetgreen (SG) Reports Q4 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Q4 results missed expectations: EPS $(0.42) vs. $(0.32) consensus and revenue of $155.2M vs. $159.6M est.; profitability remains negative with a -16.6% net margin. These misses explain investor caution. Sweetgreen, Inc. (SG) Reports Q4 Loss, Misses Revenue Estimates
• Negative Sentiment: Same-store sales fell 11.5% and management reported a sharp drop in traffic in Q4 — the core demand weakness is the primary near-term risk to a durable recovery. Sweetgreen sees a sharp drop in traffic in Q4
• Negative Sentiment: Industry context: analysts and media warn Sweetgreen’s sales miss is a reality check for the fast-casual restaurant space after peers saw rallies, highlighting sector-level demand risks. Sweetgreen’s disappointing sales offer a reality check for restaurants, after Cava’s rally

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.