Sweetgreen (NYSE:SG) Announces Earnings Results, Hits Expectations

Sweetgreen (NYSE:SG) posted its quarterly earnings data on Friday. The company reported ($0.26) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.26), FiscalAI reports. The business had revenue of $176.02 million during the quarter, compared to the consensus estimate of $170.07 million. Sweetgreen had a negative return on equity of 32.94% and a net margin of 2.01%. Sweetgreen’s quarterly revenue was up 2.1% on a year-over-year basis. During the same period in the prior year, the business posted ($0.31) earnings per share.

Sweetgreen Trading Up 3.2%

Shares of SG stock traded up $0.37 during trading on Friday, reaching $11.92. 12,911,641 shares of the company’s stock traded hands, compared to its average volume of 5,103,324. The firm’s 50-day moving average is $8.83 and its 200 day moving average is $7.28. The company has a market capitalization of $1.42 billion, a P/E ratio of 119.25 and a beta of 2.11. Sweetgreen has a 1 year low of $4.49 and a 1 year high of $12.49.

Key Headlines Impacting Sweetgreen

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Sweetgreen reported Q3 revenue of $176.0 million, up 2.1% year over year and above the roughly $170 million consensus estimate. Its $0.26-per-share loss was in line with consensus and narrower than the year-earlier loss. Same-store sales fell 6.4%, an improvement from a 9.5% decline a year ago. Sweetgreen Q3 results
• Positive Sentiment: Several firms raised their targets: Oppenheimer and Wells Fargo moved to $14, while KeyCorp raised its target to $13; all maintained bullish ratings. The revisions may bolster confidence following the earnings release. Oppenheimer rating Wells Fargo rating KeyCorp rating
• Neutral Sentiment: TD Cowen raised its target from $9 to $11 but kept a Hold rating; its new target remains below the stock’s recent trading level. TD Cowen rating
• Negative Sentiment: Despite improvement, same-store sales remained negative and overall revenue growth was modest. Reports tie the sales pressure to the Cyclospora outbreak, leaving investors focused on whether the recovery can continue. Same-store sales and outbreak recovery

Insider Transactions at Sweetgreen

In other news, CFO Jamie McConnell sold 15,033 shares of the company’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $93,354.93. Following the sale, the chief financial officer directly owned 210,489 shares in the company, valued at $1,307,136.69. This represents a 6.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Jason Miles Cochran sold 4,809 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $6.21, for a total transaction of $29,863.89. Following the completion of the sale, the chief operating officer directly owned 207,076 shares in the company, valued at approximately $1,285,941.96. The trade was a 2.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 18.19% of the company’s stock.

Wall Street Analysts Forecast Growth

SG has been the subject of several research analyst reports. UBS Group lifted their price objective on Sweetgreen from $6.50 to $11.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 28th. TD Cowen lifted their target price on Sweetgreen from $9.00 to $11.00 and gave the stock a “hold” rating in a report on Friday. Wall Street Zen raised Sweetgreen from a “strong sell” rating to a “sell” rating in a research note on Sunday, August 16th. DA Davidson increased their price target on Sweetgreen from $5.50 to $12.00 and gave the stock a “neutral” rating in a report on Friday. Finally, Royal Bank Of Canada lifted their price objective on shares of Sweetgreen from $6.50 to $11.00 and gave the company an “outperform” rating in a research note on Tuesday, September 29th. Six analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Sweetgreen currently has an average rating of “Hold” and an average target price of $9.88.

About Sweetgreen

Sweetgreen, Inc operates a fast-casual restaurant company focused on fresh, customizable meals. Its menu includes salads, grain bowls, protein plates, sides, and beverages made with seasonal produce and other ingredients. Customers can order in restaurants or through Sweetgreen’s website and mobile application, with options for pickup and delivery.

Founded in 2007 by Nicolas Jammet, Jonathan Neman, and Nathaniel Ru, Sweetgreen began as a single restaurant in Washington, DC The company has expanded its restaurant network across metropolitan areas in the United States, with locations concentrated in major markets on the East and West coasts and in other regions.