Sweetgreen (NYSE:SG) Announces Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Key Points

• Sweetgreen reported a quarterly loss of ($0.20) earnings per share, missing analysts' expectations of ($0.12) and showing a 0.5% year-over-year revenue increase to $185.58 million.
• The company's stock saw a trading increase of 2.9%, with a market cap of $1.49 billion and current stock prices ranging between a twelve month low of $11.84 and high of $45.12.
• Analysts have given Sweetgreen an average rating of "Hold" with price targets ranging from $15.00 to $22.46, indicating mixed sentiments regarding the stock's potential.

Sweetgreen (NYSE:SG - Get Free Report) announced its earnings results on Thursday. The company reported ($0.20) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.08), Zacks reports. Sweetgreen had a negative net margin of 14.29% and a negative return on equity of 21.91%. The business had revenue of $185.58 million for the quarter, compared to the consensus estimate of $193.47 million. During the same quarter in the previous year, the company earned ($0.13) EPS. The firm's revenue for the quarter was up .5% on a year-over-year basis. Sweetgreen updated its FY 2025 guidance to EPS.

Sweetgreen Stock Performance

SG stock traded down $0.08 during midday trading on Tuesday, hitting $9.50. 3,633,452 shares of the stock were exchanged, compared to its average volume of 4,796,501. The stock's 50-day moving average price is $13.38 and its 200-day moving average price is $18.97. Sweetgreen has a fifty-two week low of $8.80 and a fifty-two week high of $45.12. The stock has a market cap of $1.11 billion, a price-to-earnings ratio of -11.32 and a beta of 2.04.

Analyst Upgrades and Downgrades

SG has been the topic of a number of research analyst reports. The Goldman Sachs Group reduced their target price on Sweetgreen from $23.00 to $15.00 and set a "neutral" rating on the stock in a report on Wednesday, June 4th. Morgan Stanley cut their target price on Sweetgreen from $22.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Monday, July 14th. Royal Bank Of Canada cut their price objective on shares of Sweetgreen from $25.00 to $13.00 and set an "outperform" rating for the company in a report on Friday. Piper Sandler decreased their price target on shares of Sweetgreen from $20.00 to $12.00 and set a "neutral" rating for the company in a research report on Friday. Finally, Bank of America dropped their price target on shares of Sweetgreen from $27.00 to $22.00 and set a "buy" rating on the stock in a research note on Friday, July 18th. Eight investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $17.69.

Insider Transactions at Sweetgreen

In other Sweetgreen news, Director Clifford Burrows acquired 19,200 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The stock was acquired at an average cost of $13.11 per share, with a total value of $251,712.00. Following the acquisition, the director directly owned 19,200 shares of the company's stock, valued at $251,712. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Mitch Reback sold 10,088 shares of the stock in a transaction on Friday, May 16th. The shares were sold at an average price of $15.23, for a total value of $153,640.24. Following the sale, the chief financial officer owned 334,421 shares of the company's stock, valued at $5,093,231.83. This trade represents a 2.93% decrease in their position. The disclosure for this sale can be found here. 19.78% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Sweetgreen stock. Royal Bank of Canada increased its position in shares of Sweetgreen, Inc. (NYSE:SG - Free Report) by 22.4% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 291,477 shares of the company's stock after purchasing an additional 53,427 shares during the quarter. Royal Bank of Canada owned approximately 0.25% of Sweetgreen worth $7,292,000 as of its most recent SEC filing. Institutional investors own 95.75% of the company's stock.

About Sweetgreen

Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.