Sweetgreen (NYSE:SG) Issues Quarterly Earnings Results

Key Points

• Sweetgreen missed quarterly expectations, reporting a loss of $0.27 per share versus the $0.23 expected and revenue of $161.5 million versus $164.0 million forecast. Revenue fell 2.9% year over year, reflecting continued softness in demand.
• Same-store sales dropped 12.8% and margins were pressured by higher costs, including food, beverage and packaging at 29% of revenue and labor at 31.4% of revenue. Adjusted EBITDA was a loss of $8.1 million for the quarter.
• Management is leaning on new wraps and operational improvements to revive traffic, saying the national wrap rollout and initiatives like Project One Best Way are showing early signs of improvement. Even so, Sweetgreen kept its FY2026 outlook cautious, with same-store sales still expected to decline 4% to 2%.

Sweetgreen (NYSE:SG - Get Free Report) issued its earnings results on Thursday. The company reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.04), Zacks reports. Sweetgreen had a negative return on equity of 35.14% and a net margin of 2.49%.The company had revenue of $161.52 million during the quarter, compared to the consensus estimate of $163.95 million. During the same quarter in the prior year, the business earned ($0.21) EPS. The firm's revenue for the quarter was down 2.9% compared to the same quarter last year.

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

• Quarter results were pressured with revenue of $161.5M, comparable sales down 12.8%, restaurant-level margin at 10%, and adjusted EBITDA a loss of $8.1M.
• Cost pressures remain meaningful as food, beverage & packaging rose to 29% of revenue (+250 bps) and labor increased to 31.4% of revenue (+250 bps), driven by higher ingredient usage, wage inflation and weather-related produce costs.
• Management launched wraps nationwide after multi-market tests that drove incremental traffic, showed ~85% positive social sentiment and entry price points of $10.45–$14.95, and expects wraps to help rebuild traffic in Q2.
• Operational initiatives (Project One Best Way, head coach summits and field training) produced early lift — improved throughput, fewer quality complaints and ingredient availability — with transactions improving into April (management cited ~100 bps improvement in March and ~-8% in April).
• Sweetgreen reiterated FY26 targets calling for same-store sales down -4% to -2%, restaurant-level margin of 14.2%–14.7%, adjusted EBITDA of $1M–$6M, and ~13 net new restaurants, reflecting a paced recovery plan with continued execution risk.

Sweetgreen Trading Up 2.4%

Shares of SG traded up $0.16 during trading hours on Friday, reaching $7.03. 9,353,722 shares of the company's stock traded hands, compared to its average volume of 4,153,303. The stock has a market cap of $835.64 million, a PE ratio of 58.62 and a beta of 2.03. The firm's 50 day simple moving average is $5.91 and its 200-day simple moving average is $6.36. Sweetgreen has a 12 month low of $4.49 and a 12 month high of $17.27.

Analysts Set New Price Targets

SG has been the subject of several analyst reports. BNP Paribas Exane raised their target price on Sweetgreen from $4.50 to $5.00 and gave the stock an "underperform" rating in a research note on Friday. Royal Bank Of Canada cut their target price on Sweetgreen from $8.00 to $7.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. Citizens Jmp initiated coverage on Sweetgreen in a research note on Monday, March 30th. They issued a "mkt underperform" rating and a $4.50 target price for the company. DA Davidson initiated coverage on Sweetgreen in a research note on Friday, March 6th. They issued a "neutral" rating and a $5.50 target price for the company. Finally, Morgan Stanley cut their target price on Sweetgreen from $10.00 to $9.00 and set an "equal weight" rating for the company in a research note on Tuesday, January 20th. Three analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $7.51.

Key Sweetgreen News

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Sweetgreen is rolling out its new under-$15 wraps nationally, which could help broaden its menu appeal and support traffic if customers respond well. Sweetgreen reiterates FY2026 same-store sales outlook of (-4%) to (-2%) as Wraps roll out nationally
• Neutral Sentiment: BNP Paribas Exane raised its price target on Sweetgreen to $5.00 from $4.50, but kept an underperform rating, signaling the firm still expects meaningful downside from current levels. Benzinga report on BNP Paribas Exane price target change
• Negative Sentiment: The company missed Q1 estimates, posting a loss of $0.27 per share versus expectations for a $0.23 loss, while revenue of $161.5 million also came in below forecasts and declined 2.9% year over year. Sweetgreen, Inc. Announces First Quarter 2026 Financial Results
• Negative Sentiment: Same-store sales fell 12.8% in the quarter, and Sweetgreen reiterated FY2026 same-store sales guidance of down 4% to down 2%, reinforcing concerns about weakening demand. Sweetgreen reiterates FY2026 same-store sales outlook of (-4%) to (-2%) as Wraps roll out nationally

Insider Transactions at Sweetgreen

In other news, insider Nicolas Jammet acquired 4,428 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were bought at an average cost of $5.71 per share, with a total value of $25,283.88. Following the acquisition, the insider owned 22,543 shares in the company, valued at approximately $128,720.53. This represents a 24.44% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Goldman Sachs Group Inc purchased 594,553 shares of the firm's stock in a transaction on Tuesday, April 7th. The stock was bought at an average cost of $5.69 per share, for a total transaction of $3,383,006.57. Following the completion of the purchase, the insider directly owned 11,900,255 shares in the company, valued at approximately $67,712,450.95. This trade represents a 5.26% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 19.78% of the company's stock.

Hedge Funds Weigh In On Sweetgreen

A number of large investors have recently bought and sold shares of the stock. Invesco Ltd. grew its position in shares of Sweetgreen by 23.9% in the 4th quarter. Invesco Ltd. now owns 134,511 shares of the company's stock worth $909,000 after buying an additional 25,921 shares during the last quarter. VARCOV Co. bought a new stake in shares of Sweetgreen in the 4th quarter worth approximately $141,000. Twinbeech Capital LP bought a new stake in shares of Sweetgreen in the 4th quarter worth approximately $606,000. Engineers Gate Manager LP bought a new stake in shares of Sweetgreen in the 4th quarter worth approximately $711,000. Finally, First Manhattan CO. LLC. grew its position in shares of Sweetgreen by 174.4% in the 4th 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. 95.75% of the stock is owned by hedge funds and other institutional investors.

About Sweetgreen

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.