Sweetgreen Shares Plunge 25.1% Amid Traffic Struggles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2026
0mins
Source: Fool
- Significant Stock Decline: Sweetgreen's shares plummeted 25.1% last week, with a current price of $7.45 and a market cap of $876 million, indicating a pessimistic outlook from investors regarding its future performance.
- Customer Traffic Issues: The restaurant chain has struggled with declining customer traffic, and despite a brief uptick last month due to a new wrap menu, UBS downgraded its rating from 'buy' to 'neutral' this week, citing concerns over sales growth.
- Poor Financial Performance: Sweetgreen is currently experiencing a same-store sales decline of 12.8% and reported a $34 million operating loss last quarter, highlighting ongoing challenges in achieving profitability and posing significant risks for investors.
- Transformation Strategy Challenges: Although Sweetgreen is pursuing a turnaround strategy to attract health-conscious consumers, it has failed to generate profits since going public in 2021, leaving investors uncertain about the viability of adding this stock to their portfolios.
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Analyst Views on SG
Wall Street analysts forecast SG stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 9.150
Low
5.00
Averages
7.57
High
10.00
Current: 9.150
Low
5.00
Averages
7.57
High
10.00
About SG
Sweetgreen, Inc. is a restaurant and lifestyle brand that serves healthy food at scale. The Company has designed its menu to be customizable and convenient to empower its customers to make healthier choices for both lunch and dinner. The Company owns and operates approximately 285 restaurants in 24 states and Washington, District of Columbia. Its core menu consists of a curated set of signature items offered year-round across all locations. Through its owned digital channels, it also offers exclusive menu items and curated collections that support discovery, personalization, and guest engagement. It has a five-sales channel model that is designed to help its customers to order. The Company's five sales channel models include In-Store Channel, Marketplace Channel, Native Delivery Channel, Outpost and Catering Channel, and Pick-Up Channel. The Native Delivery Channel includes sales to customers for delivery made through the Sweetgreen website or mobile app.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dutch Bros Rapid Expansion vs. Sweetgreen's Revenue Decline
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, currently operating less than 1,200, indicating a robust annual growth rate of approximately 19%, positioning itself advantageously in the rapidly growing coffee market.
- Sweetgreen Revenue Decline: Sweetgreen has experienced a revenue drop for three consecutive quarters, with a year-over-year customer count decline of 11% per restaurant in Q1, highlighting increasing competitive pressure in the premium health food sector.
- Profitability Comparison: Dutch Bros boasts $116 million in retained earnings, while Sweetgreen has incurred losses of $884 million, illustrating a significant disparity in profitability, with Dutch Bros demonstrating a more sustainable business model.
- Market Expectation Divergence: Analysts rate Sweetgreen as a “hold,” while Dutch Bros is rated a “strong buy,” indicating a clear divergence in market expectations regarding the future performance of the two companies.
See More
Investment Comparison: Dutch Bros vs Sweetgreen
- Growth Rate Comparison: Dutch Bros aims to increase its locations from 1,200 to 2,029 by 2029, representing an annual growth rate of approximately 19%, showcasing its rapid expansion potential, while Sweetgreen has faced three consecutive quarters of revenue declines with an 11% drop in customer traffic.
- Profitability Differences: Dutch Bros boasts a gross margin of 25.01% and operates 72% of its locations, ensuring profitability, whereas Sweetgreen has incurred losses totaling $884 million over the past three years, indicating a fragile business model.
- Market Valuation Analysis: Although Dutch Bros trades at a high price-to-earnings ratio of 105, reflecting its premium valuation, its consistent growth and profitability make it attractive; in contrast, Sweetgreen's 71 times earnings ratio comes with expected losses in the next two years.
- Investor Sentiment: Analysts rate Dutch Bros as a
See More
Sweetgreen Stock Drops 25.1% Amid Struggles
- Stock Plunge: Sweetgreen's shares fell 25.1% last week, reflecting a pessimistic market sentiment regarding its future prospects, particularly given its inability to generate profit since going public in 2021, which severely undermines investor confidence.
- Weak Sales Growth: Despite the launch of a new menu item—wraps—in an attempt to attract customers, same-store sales still reported a negative growth of 12.8%, indicating significant challenges in restoring customer traffic.
- Increasing Operating Losses: The company reported an operating loss of $34 million last quarter, highlighting a continued deterioration in profitability, as management's innovative menu strategy has yet to effectively improve financial conditions, potentially leading to further investor attrition.
- Rating Downgrade Impact: UBS downgraded Sweetgreen's stock from
See More
Sweetgreen Shares Plunge 25.1% Amid Traffic Struggles
- Significant Stock Decline: Sweetgreen's shares plummeted 25.1% last week, with a current price of $7.45 and a market cap of $876 million, indicating a pessimistic outlook from investors regarding its future performance.
- Customer Traffic Issues: The restaurant chain has struggled with declining customer traffic, and despite a brief uptick last month due to a new wrap menu, UBS downgraded its rating from 'buy' to 'neutral' this week, citing concerns over sales growth.
- Poor Financial Performance: Sweetgreen is currently experiencing a same-store sales decline of 12.8% and reported a $34 million operating loss last quarter, highlighting ongoing challenges in achieving profitability and posing significant risks for investors.
- Transformation Strategy Challenges: Although Sweetgreen is pursuing a turnaround strategy to attract health-conscious consumers, it has failed to generate profits since going public in 2021, leaving investors uncertain about the viability of adding this stock to their portfolios.
See More
2026 FIFA World Cup to Boost Key Sectors and Stocks
- Sector Benefit Analysis: Deutsche Bank analysts noted that the 2026 FIFA World Cup will provide a temporary boost to sectors such as leisure, dining, media, tech, and gaming, particularly benefiting U.S. restaurant brands like Sweetgreen, Shake Shack, and The Cheesecake Factory due to their proximity to host cities.
- Advertising Revenue Expectations: The tournament is expected to generate the highest advertising revenue in U.S. history, with the number of participating teams increasing from 32 to 48, benefiting major players like Fox and Comcast's Telemundo, thereby driving growth in the media sector.
- Consumer Goods Market Outlook: Goldman Sachs forecasts that European and U.S. consumer staples, retail, lodging, and airlines will benefit from the influx of spectators traveling to the games, with beer companies such as AB InBev, Constellation Brands, and Molson Coors rated as
See More
Sweetgreen Stock Rebounds with Optimistic Outlook
- Improved Performance Outlook: Sweetgreen's disappointing first-quarter results were overshadowed by guidance indicating expected improvement in the second quarter, with comparable sales showing recovery, which instilled investor confidence and led to a 45% stock price increase.
- New Product Launch: The national rollout of wraps received positive reviews and is priced lower than salads, a strategy that not only attracted more customers but also enhanced brand image, further driving stock price gains.
- Institutional Investor Involvement: Hedge funds like Point72 increased their stakes in Sweetgreen during the first quarter, contributing to a 5% stock rise on May 14 and a subsequent 17% jump, reflecting market confidence in the company's future prospects.
- Executive Appointment: Sweetgreen appointed Cindy Olsen as Chief Strategy Officer to drive the company's transformation, particularly in promoting the new wraps, which could provide new growth momentum for the company.
See More
Dutch Bros Rapid Expansion vs. Sweetgreen's Revenue Decline
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, currently operating less than 1,200, indicating a robust annual growth rate of approximately 19%, positioning itself advantageously in the rapidly growing coffee market.
- Sweetgreen Revenue Decline: Sweetgreen has experienced a revenue drop for three consecutive quarters, with a year-over-year customer count decline of 11% per restaurant in Q1, highlighting increasing competitive pressure in the premium health food sector.
- Profitability Comparison: Dutch Bros boasts $116 million in retained earnings, while Sweetgreen has incurred losses of $884 million, illustrating a significant disparity in profitability, with Dutch Bros demonstrating a more sustainable business model.
- Market Expectation Divergence: Analysts rate Sweetgreen as a “hold,” while Dutch Bros is rated a “strong buy,” indicating a clear divergence in market expectations regarding the future performance of the two companies.
See More
Investment Comparison: Dutch Bros vs Sweetgreen
- Growth Rate Comparison: Dutch Bros aims to increase its locations from 1,200 to 2,029 by 2029, representing an annual growth rate of approximately 19%, showcasing its rapid expansion potential, while Sweetgreen has faced three consecutive quarters of revenue declines with an 11% drop in customer traffic.
- Profitability Differences: Dutch Bros boasts a gross margin of 25.01% and operates 72% of its locations, ensuring profitability, whereas Sweetgreen has incurred losses totaling $884 million over the past three years, indicating a fragile business model.
- Market Valuation Analysis: Although Dutch Bros trades at a high price-to-earnings ratio of 105, reflecting its premium valuation, its consistent growth and profitability make it attractive; in contrast, Sweetgreen's 71 times earnings ratio comes with expected losses in the next two years.
- Investor Sentiment: Analysts rate Dutch Bros as a
See More
Sweetgreen Stock Drops 25.1% Amid Struggles
- Stock Plunge: Sweetgreen's shares fell 25.1% last week, reflecting a pessimistic market sentiment regarding its future prospects, particularly given its inability to generate profit since going public in 2021, which severely undermines investor confidence.
- Weak Sales Growth: Despite the launch of a new menu item—wraps—in an attempt to attract customers, same-store sales still reported a negative growth of 12.8%, indicating significant challenges in restoring customer traffic.
- Increasing Operating Losses: The company reported an operating loss of $34 million last quarter, highlighting a continued deterioration in profitability, as management's innovative menu strategy has yet to effectively improve financial conditions, potentially leading to further investor attrition.
- Rating Downgrade Impact: UBS downgraded Sweetgreen's stock from
See More
Sweetgreen Shares Plunge 25.1% Amid Traffic Struggles
- Significant Stock Decline: Sweetgreen's shares plummeted 25.1% last week, with a current price of $7.45 and a market cap of $876 million, indicating a pessimistic outlook from investors regarding its future performance.
- Customer Traffic Issues: The restaurant chain has struggled with declining customer traffic, and despite a brief uptick last month due to a new wrap menu, UBS downgraded its rating from 'buy' to 'neutral' this week, citing concerns over sales growth.
- Poor Financial Performance: Sweetgreen is currently experiencing a same-store sales decline of 12.8% and reported a $34 million operating loss last quarter, highlighting ongoing challenges in achieving profitability and posing significant risks for investors.
- Transformation Strategy Challenges: Although Sweetgreen is pursuing a turnaround strategy to attract health-conscious consumers, it has failed to generate profits since going public in 2021, leaving investors uncertain about the viability of adding this stock to their portfolios.
See More
2026 FIFA World Cup to Boost Key Sectors and Stocks
- Sector Benefit Analysis: Deutsche Bank analysts noted that the 2026 FIFA World Cup will provide a temporary boost to sectors such as leisure, dining, media, tech, and gaming, particularly benefiting U.S. restaurant brands like Sweetgreen, Shake Shack, and The Cheesecake Factory due to their proximity to host cities.
- Advertising Revenue Expectations: The tournament is expected to generate the highest advertising revenue in U.S. history, with the number of participating teams increasing from 32 to 48, benefiting major players like Fox and Comcast's Telemundo, thereby driving growth in the media sector.
- Consumer Goods Market Outlook: Goldman Sachs forecasts that European and U.S. consumer staples, retail, lodging, and airlines will benefit from the influx of spectators traveling to the games, with beer companies such as AB InBev, Constellation Brands, and Molson Coors rated as
See More
Sweetgreen Stock Rebounds with Optimistic Outlook
- Improved Performance Outlook: Sweetgreen's disappointing first-quarter results were overshadowed by guidance indicating expected improvement in the second quarter, with comparable sales showing recovery, which instilled investor confidence and led to a 45% stock price increase.
- New Product Launch: The national rollout of wraps received positive reviews and is priced lower than salads, a strategy that not only attracted more customers but also enhanced brand image, further driving stock price gains.
- Institutional Investor Involvement: Hedge funds like Point72 increased their stakes in Sweetgreen during the first quarter, contributing to a 5% stock rise on May 14 and a subsequent 17% jump, reflecting market confidence in the company's future prospects.
- Executive Appointment: Sweetgreen appointed Cindy Olsen as Chief Strategy Officer to drive the company's transformation, particularly in promoting the new wraps, which could provide new growth momentum for the company.
See More
