Sweetgreen (NYSE:SG) Posts Earnings Results, Misses Estimates By $0.10 EPS

27 Feb 2026, 02:20 by Michael Walen · The Markets Daily

Sweetgreen (NYSE:SG – Get Free Report) posted its earnings results on Thursday. The company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.32) by ($0.10), FiscalAI reports. Sweetgreen had a negative return on equity of 25.67% and a negative net margin of 16.55%.The business had revenue of $155.19 million for the quarter, compared to the consensus estimate of $159.59 million. During the same period in the previous year, the firm earned ($0.25) earnings per share. The company’s revenue was down 3.5% on a year-over-year basis.

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

For FY2025 revenue was $679.5M and Q4 sales were $155.2M with comparable sales down 11.5% in Q4 (FY comps -7.9%), restaurant-level margin compressed sharply to 10.4% in Q4 versus 17.4% a year ago, and Q4 adjusted EBITDA was a loss of $13.3M and net loss $49.7M.
Management is executing a five‑point Sweet Growth Transformation Plan with an emphasis on operational excellence (Project One Best Way), and reports ~two‑thirds of restaurants now meeting their “great” standard with improved throughput and scorecard visibility.
Product innovation momentum is building — the company has its largest innovation pipeline ever, is testing wraps in a multi‑market pilot (priced under $15) with encouraging early results and a potential mid‑2026 rollout if stage‑gate criteria are met.
Technology and portfolio moves are intended to boost unit economics — Infinite Kitchen locations are delivering higher AAVs and >700 bps labor savings versus classic stores, and the early 2026 sale of Spyce generated $100M in cash to bolster liquidity.
2026 guidance assumes same‑store sales down -4% to -2% with restaurant‑level margin of 14.2%–14.7% and adjusted EBITDA of $1M–$6M, about 15 net new restaurants planned (nearly half with Infinite Kitchen), and management expects trends to improve through the year after a weather‑impacted Q1.

Sweetgreen Price Performance

Shares of NYSE SG traded up $0.29 during trading on Thursday, reaching $6.15. 7,932,459 shares of the stock traded hands, compared to its average volume of 3,676,189. The stock has a market capitalization of $727.98 million, a P/E ratio of -6.34 and a beta of 1.92. Sweetgreen has a 52-week low of $4.99 and a 52-week high of $27.15. The company has a 50-day moving average of $6.55 and a 200-day moving average of $7.27.

Hedge Funds Weigh In On Sweetgreen

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SG. Invesco Ltd. increased its stake in shares of Sweetgreen by 23.9% in the fourth quarter. Invesco Ltd. now owns 134,511 shares of the company’s stock worth $909,000 after purchasing an additional 25,921 shares in the last quarter. VARCOV Co. bought a new position in Sweetgreen in the 4th quarter worth approximately $141,000. Twinbeech Capital LP purchased a new position in Sweetgreen in the 4th quarter valued at approximately $606,000. Engineers Gate Manager LP bought a new stake in Sweetgreen during the 4th quarter valued at $711,000. Finally, First Manhattan CO. LLC. lifted its position in shares of Sweetgreen by 174.4% during the fourth quarter. First Manhattan CO. LLC. now owns 532,630 shares of the company’s stock worth $3,601,000 after acquiring an additional 338,500 shares in the last quarter. Institutional investors own 95.75% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have commented on SG shares. Weiss Ratings reissued a “sell (e+)” rating on shares of Sweetgreen in a report on Monday, December 29th. Citigroup reissued a “buy” rating on shares of Sweetgreen in a research report on Wednesday, November 12th. Oppenheimer set a $10.00 price objective on shares of Sweetgreen in a report on Friday, November 7th. UBS Group reduced their target price on shares of Sweetgreen from $7.50 to $6.50 and set a “neutral” rating for the company in a research note on Monday. Finally, Morgan Stanley dropped their price target on shares of Sweetgreen from $10.00 to $9.00 and set an “equal weight” rating on the stock in a research 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. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $10.76.

Read Our Latest Stock Analysis on SG

Sweetgreen News Summary

Here are the key news stories impacting Sweetgreen this week:

Positive Sentiment: Management emphasizes a fast-moving transformation plan to stabilize the business, which may reassure investors who believe operational fixes can restore traffic and margins. Sweetgreen Sales Fall Despite Price Hikes, Turnaround Efforts
Positive Sentiment: Company press release restated results and highlighted the fiscal actions and strategy updates being implemented as part of the turnaround, giving investors specific steps to watch. Sweetgreen, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
Neutral Sentiment: Earnings call transcript is available for investors wanting management commentary and Q&A (useful for judging the credibility of the turnaround timeline). Sweetgreen (SG) Q4 2025 Earnings Call Transcript
Neutral Sentiment: Analysts’ metric breakdowns (traffic, AUV, margins) are being updated — useful context but not new headline surprises beyond the release. Sweetgreen (SG) Reports Q4 Earnings: What Key Metrics Have to Say
Negative Sentiment: Q4 results missed expectations: EPS $(0.42) vs. $(0.32) consensus and revenue of $155.2M vs. $159.6M est.; profitability remains negative with a -16.6% net margin. These misses explain investor caution. Sweetgreen, Inc. (SG) Reports Q4 Loss, Misses Revenue Estimates
Negative Sentiment: Same-store sales fell 11.5% and management reported a sharp drop in traffic in Q4 — the core demand weakness is the primary near-term risk to a durable recovery. Sweetgreen sees a sharp drop in traffic in Q4
Negative Sentiment: Industry context: analysts and media warn Sweetgreen’s sales miss is a reality check for the fast-casual restaurant space after peers saw rallies, highlighting sector-level demand risks. Sweetgreen’s disappointing sales offer a reality check for restaurants, after Cava’s rally

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.