Sweetgreen (NYSE:SG) Announces Earnings Results, Meets Expectations

Sweetgreen (NYSE:SG) released its quarterly earnings results on Friday. The company reported ($0.26) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.26), FiscalAI reports. The firm had revenue of $176.02 million for the quarter, compared to analyst estimates of $170.07 million. Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%. The business’s revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the company posted ($0.31) earnings per share.

Sweetgreen Trading Up 3.2%

Shares of NYSE:SG traded up $0.37 on Friday, hitting $11.92. The company had a trading volume of 12,911,641 shares, compared to its average volume of 4,465,237. The company has a market cap of $1.42 billion, a PE ratio of 79.50 and a beta of 2.11. Sweetgreen has a 52-week low of $4.49 and a 52-week high of $12.49. The business has a 50 day moving average of $8.93 and a 200 day moving average of $7.31.

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

Insider Activity

In other news, COO Jason Miles Cochran sold 4,809 shares of Sweetgreen stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $6.21, for a total transaction of $29,863.89. Following the completion of the sale, the chief operating officer directly owned 207,076 shares in the company, valued at $1,285,941.96. The trade was a 2.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 Sweetgreen stock in a transaction dated 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 trade represents a 6.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 18.19% of the company’s stock.

Analyst Ratings Changes

Several research analysts have weighed in on SG shares. UBS Group lifted their target price on Sweetgreen from $6.50 to $11.00 and gave the company a “neutral” rating in a research note on Wednesday, October 28th. Royal Bank Of Canada boosted their target price on Sweetgreen from $6.50 to $11.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 29th. Oppenheimer increased their target price on Sweetgreen from $8.50 to $14.00 and gave the stock an “outperform” rating in a research note on Friday. Wells Fargo & Company raised their price target on Sweetgreen from $11.00 to $14.00 and gave the company an “overweight” rating in a report on Friday. Finally, Citigroup lifted their price target on Sweetgreen from $13.00 to $15.00 and gave the company a “buy” rating in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $9.88.

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.