Wolfe Research Begins Coverage on Sweetgreen (NYSE:SG)

Key Points

• Wolfe Research initiated coverage on Sweetgreen and assigned a "peer perform" rating, effectively a neutral view on the stock.
• Analyst sentiment is mixed but leans toward a Hold, with three Buys, thirteen Holds and two Sells and a consensus price target of $8.22.
• Sweetgreen missed its most recent quarter (EPS -$0.42 vs. -$0.31 expected; revenue $155.2M vs. $159.6M expected), reported negative margins and ROE, and the stock trades near its one‑year low (~$5.64) with a market cap of about $668M.

Analysts at Wolfe Research assumed coverage on shares of Sweetgreen (NYSE:SG - Get Free Report) in a research note issued on Monday,Benzinga reports. The firm set a "peer perform" rating on the stock.

Several other brokerages have also recently weighed in on SG. Oppenheimer lowered their price target on shares of Sweetgreen from $10.00 to $9.00 and set an "outperform" rating on the stock in a research report on Friday, February 27th. Sanford C. Bernstein set a $7.00 target price on shares of Sweetgreen in a research note on Wednesday, January 7th. Zacks Research raised shares of Sweetgreen from a "strong sell" rating to a "hold" rating in a research note on Wednesday, November 12th. DA Davidson assumed coverage on shares of Sweetgreen in a report on Friday. They set a "neutral" rating and a $5.50 price target for the company. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sweetgreen in a research report on Monday, December 29th. Three analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $8.22.

Sweetgreen Stock Performance

NYSE:SG opened at $5.64 on Monday. Sweetgreen has a one year low of $4.99 and a one year high of $27.15. The stock has a market cap of $667.61 million, a PE ratio of -4.95 and a beta of 1.93. The stock has a 50 day moving average price of $6.39 and a 200 day moving average price of $7.08.

Sweetgreen (NYSE:SG - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.42) earnings per share for the quarter, missing analysts' consensus estimates of ($0.31) by ($0.11). The company had revenue of $155.19 million for the quarter, compared to analyst estimates of $159.59 million. Sweetgreen had a negative return on equity of 32.26% and a negative net margin of 19.73%.The business's quarterly revenue was down 3.5% on a year-over-year basis. During the same period last year, the firm posted ($0.25) EPS. As a group, analysts predict that Sweetgreen will post -0.74 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of SG. Vanguard Group Inc. raised its stake in shares of Sweetgreen by 1.4% in the 3rd quarter. Vanguard Group Inc. now owns 9,593,744 shares of the company's stock valued at $76,558,000 after acquiring an additional 129,572 shares during the period. Woodson Capital Management LP boosted its position in shares of Sweetgreen by 152.6% during the 4th quarter. Woodson Capital Management LP now owns 6,000,000 shares of the company's stock worth $40,560,000 after purchasing an additional 3,625,000 shares during the period. Spyglass Capital Management LLC boosted its position in shares of Sweetgreen by 4.0% during the 3rd quarter. Spyglass Capital Management LLC now owns 4,056,570 shares of the company's stock worth $32,371,000 after purchasing an additional 156,757 shares during the period. Greenhouse Funds LLLP increased its holdings in Sweetgreen by 82.8% in the 3rd quarter. Greenhouse Funds LLLP now owns 3,946,884 shares of the company's stock valued at $31,496,000 after purchasing an additional 1,788,175 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in Sweetgreen by 1,428.8% in the 3rd quarter. Marshall Wace LLP now owns 3,923,973 shares of the company's stock valued at $31,313,000 after purchasing an additional 3,667,306 shares during the last quarter. Hedge funds and other institutional investors own 95.75% of the company's stock.

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.

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