Sweetgreen (NYSE:SG) Stock Price Down 11.6% on Disappointing Earnings

27 Feb 2026, 14:39 by Jessica Moore · The Cerbat Gem

Shares of Sweetgreen, Inc. (NYSE:SG – Get Free Report) fell 11.6% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $5.25 and last traded at $5.4250. 6,193,706 shares were traded during trading, an increase of 43% from the average session volume of 4,328,424 shares. The stock had previously closed at $6.14.

The company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.31) by ($0.11). The business had revenue of $155.19 million during the quarter, compared to analysts’ expectations of $159.59 million. Sweetgreen had a negative net margin of 16.55% and a negative return on equity of 25.67%. The firm’s quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.25) EPS.

Key Stories Impacting Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

Positive Sentiment: Management outlined a 2026 transformation plan that emphasizes menu innovation and operational improvements aimed at restoring traffic and margins — a potential multi-quarter catalyst if execution accelerates recovery. Article Title
Neutral Sentiment: Royal Bank of Canada cut its price target from $8 to $7 but maintained an “outperform” rating — signaling that while near-term views were trimmed, analysts still see upside vs. current levels. Article Title
Neutral Sentiment: Oppenheimer lowered its price target from $10 to $9 and also kept an “outperform” rating, reflecting reduced near-term expectations but continued conviction in a recovery scenario. Article Title
Negative Sentiment: Q4 results missed: EPS of ($0.42) vs. ($0.31) expected and revenue of $155.2M vs. ~$159.6M est. Revenue fell 3.5% year-over-year and the company reported a negative net margin and ROE, which heightens near-term profit concerns. Article Title
Negative Sentiment: Traffic and same-store-sales weakness: Management disclosed steep traffic declines in Q4 and gave 2026 same-store-sales guidance of a 4% to 2% decline, underscoring a near-term demand challenge for the brand. Article Title
Negative Sentiment: Media coverage frames the results as a reality check for fast-casual concepts after peers rallied, highlighting that price increases and turnaround steps have not yet restored growth — increased investor skepticism may pressure the stock near term. Article Title

Wall Street Analyst Weigh In

SG has been the topic of a number of research reports. William Blair reaffirmed a “market perform” rating on shares of Sweetgreen in a report on Friday, November 7th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sweetgreen in a research report on Monday, December 29th. JPMorgan Chase & Co. boosted their price target on Sweetgreen from $6.00 to $8.00 and gave the company a “neutral” rating in a report on Tuesday, January 20th. Sanford C. Bernstein set a $7.00 price objective on Sweetgreen in a research report on Wednesday, January 7th. Finally, Morgan Stanley reduced their target price on shares of Sweetgreen from $10.00 to $9.00 and set an “equal weight” rating for the company in a report on Tuesday, January 20th. Three analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $8.43.

Get Our Latest Stock Analysis on SG

Hedge Funds Weigh In On Sweetgreen

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada lifted its position in shares of Sweetgreen by 22.4% during the first quarter. Royal Bank of Canada now owns 291,477 shares of the company’s stock worth $7,292,000 after purchasing an additional 53,427 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Sweetgreen by 6.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,572 shares of the company’s stock valued at $1,516,000 after acquiring an additional 3,553 shares during the last quarter. AlphaQuest LLC raised its stake in shares of Sweetgreen by 163,616.7% in the 2nd quarter. AlphaQuest LLC now owns 19,646 shares of the company’s stock valued at $292,000 after acquiring an additional 19,634 shares in the last quarter. Oppenheimer Asset Management Inc. boosted its position in Sweetgreen by 31.3% during the second quarter. Oppenheimer Asset Management Inc. now owns 50,973 shares of the company’s stock worth $758,000 after purchasing an additional 12,147 shares during the period. Finally, Nisa Investment Advisors LLC grew its holdings in Sweetgreen by 98.2% during the second quarter. Nisa Investment Advisors LLC now owns 2,129 shares of the company’s stock valued at $32,000 after purchasing an additional 1,055 shares during the last quarter. 95.75% of the stock is owned by institutional investors and hedge funds.

Sweetgreen Stock Down 11.6%

The stock’s 50-day moving average price is $6.55 and its 200 day moving average price is $7.27. The company has a market cap of $642.39 million, a P/E ratio of -5.59 and a beta of 1.92.

Sweetgreen Company Profile

(Get Free Report)

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.