Sweetgreen (NYSE:SG) Posts Earnings Results, Misses Estimates By $0.09 EPS

09 Aug 2026, 00:26 by Mitch Edgeman · The Markets Daily

Sweetgreen (NYSE:SG – Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.09), FiscalAI reports. Sweetgreen had a negative return on equity of 34.03% and a net margin of 2.01%.The firm had revenue of $192.66 million during the quarter, compared to the consensus estimate of $194.50 million. During the same period in the previous year, the company posted ($0.20) EPS. The company’s revenue for the quarter was up 3.8% compared to the same quarter last year.

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

Second-quarter performance weakened: Comparable restaurant sales declined 6.2%, restaurant-level margin fell to 13.1% from 18.9% a year earlier, and adjusted EBITDA turned to a $0.2 million loss.
Food-safety headlines disrupted momentum and lowered guidance. Management estimated the Cyclospora-related impact at roughly 600 basis points to July comparable sales and now expects fiscal 2026 comparable sales to decline 7%–8%, restaurant-level margin of 10.5%–11%, and adjusted EBITDA of negative $23 million to $27 million.
Operational trends improved through the quarter: Comparable transactions progressed from down 11.2% in Q1 to roughly flat in June, while throughput initiatives lifted peak entrees prepared per hour at high-volume restaurants from the low 50s to the low 60s.
Wraps are driving engagement but pressuring average checks. They reached approximately 20% incidence, increased transaction trends and repeat visits, and appealed to Gen Z customers, but their lower entry price contributed to product-mix pressure; management plans additional wrap innovation and broader customer-acquisition efforts.
Management is pursuing targeted growth and efficiency initiatives: These include broader top-of-funnel marketing, loyalty personalization, a simplified create-your-own pricing test, food-waste reduction, restaurant-specific labor deployment, and conservative new-unit development focused on higher-return sites.

Sweetgreen Price Performance

Shares of Sweetgreen stock traded down $0.48 during trading on Friday, hitting $5.39. 17,399,888 shares of the stock traded hands, compared to its average volume of 6,390,480. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $10.63. The firm’s fifty day moving average is $7.66 and its 200-day moving average is $6.85.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Larson Financial Group LLC raised its stake in shares of Sweetgreen by 165.8% during the third quarter. Larson Financial Group LLC now owns 3,766 shares of the company’s stock worth $30,000 after acquiring an additional 2,349 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in shares of Sweetgreen by 281.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company’s stock valued at $53,000 after purchasing an additional 5,839 shares in the last quarter. Dorsey & Whitney Trust CO LLC purchased a new stake in shares of Sweetgreen in the 4th quarter valued at $77,000. CIBC Bancorp USA Inc. bought a new position in shares of Sweetgreen during the 3rd quarter valued at $88,000. Finally, Caxton Associates LLP bought a new position in shares of Sweetgreen during the 3rd quarter valued at $93,000. 95.75% of the stock is currently owned by institutional investors.

Trending Headlines about Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

Positive Sentiment: Second-quarter revenue increased 3.8% year over year to $192.66 million, indicating continued sales growth despite the challenging environment. Oppenheimer maintained an “outperform” rating, although it reduced its price target from $10 to $8.50. Oppenheimer lowers Sweetgreen price target
Neutral Sentiment: Sweetgreen said it has not been implicated in the ongoing cyclospora outbreak, but consumer concerns about fresh produce are affecting traffic. The company removed jalapeños from its offerings amid the broader food-safety concerns. Sweetgreen cuts full-year outlook as cyclospora fears weigh on sales
Negative Sentiment: Sweetgreen reported a second-quarter loss of $0.22 per share, wider than the $0.13 loss analysts expected and worse than the $0.20 loss a year earlier. Revenue also fell slightly short of estimates. Sweetgreen reports second-quarter loss and misses revenue estimates
Negative Sentiment: Same-store sales declined 6.2% in the quarter, marking the chain’s sixth consecutive comparable-sales decline. Management now expects full-year same-store sales to fall 7%–8%, reflecting weaker customer demand linked to cyclospora fears. Sweetgreen shares slide as cyclosporiasis fears prompt forecast cut
Negative Sentiment: Analysts lowered their valuations following the earnings release: Wells Fargo cut its target from $7 to $6, while TD Cowen reduced its target from $8 to $5 and assigned a “hold” rating. Analysts lower Sweetgreen price targets

Analysts Set New Price Targets

SG has been the subject of several research analyst reports. BNP Paribas Exane lifted their price objective on Sweetgreen from $4.50 to $5.00 and gave the company an “underperform” rating in a research note on Friday, May 8th. DA Davidson upped their target price on Sweetgreen from $5.50 to $7.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Wells Fargo & Company lowered their price target on Sweetgreen from $7.00 to $6.00 and set an “equal weight” rating on the stock in a report on Friday. Wall Street Zen downgraded Sweetgreen from a “sell” rating to a “strong sell” rating in a research report on Saturday. Finally, JPMorgan Chase & Co. raised Sweetgreen from a “neutral” rating to an “overweight” rating and boosted their price objective for the stock from $8.00 to $13.00 in a report on Friday, May 22nd. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $7.19.

Check Out Our Latest Stock Report on SG

About Sweetgreen

(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.