Sweetgreen Reports 11.5% Same-Store Sales Decline in Q4
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SG?
Source: seekingalpha
- Sales Decline: Sweetgreen reported an 11.5% decline in same-store sales for Q4, primarily driven by a 13.3% drop in traffic, although a 1.8% benefit from menu price increases partially offset this decline, indicating a more selective consumer environment that poses near-term challenges for the business.
- Loyalty Program Transition: The shift to SG Rewards has created short-term headwinds, yet Sweetgreen believes this transition will lay the groundwork for more sustainable customer engagement in the long run, enhancing brand loyalty.
- Future Outlook: The company anticipates a same-store sales decline of between 4.0% and 2.0% for the full fiscal year and plans to open approximately 15 new restaurants, with about half featuring the Infinite Kitchen model aimed at improving operational efficiency and customer experience.
- Menu Innovation Testing: Sweetgreen plans to test new wraps at select locations in New York, the Midwest, and California, starting at $10.95, with a full lineup priced below $15; if successful, this initiative will be expanded by mid-2026, highlighting the company's focus on menu innovation to drive growth.
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Analyst Views on SG
Wall Street analysts forecast SG stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 5.860
Low
5.00
Averages
7.57
High
10.00
Current: 5.860
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's core menu features approximately 13 signature items which are offered year-round in all of its locations, including its new steak plate. In addition to its core menu items, its single most popular item is the custom salad or bowl, which can include combinations from 40-plus ingredients as well as its made-from-scratch dressings. On its Owned Digital Channels, it offers exclusive menu items, including seasonal digital exclusives and collections relevant to each customer. It has a five-channel model that is designed to help its customers to order. The Company's five-channel model includes Pick-Up, Native Delivery, Outpost and Catering, In-Store, and Marketplace. It has approximately 250 restaurants across the country.
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.
Sweetgreen (SG) Q4 2025 Earnings Call Transcript
See More
Sweetgreen Reports 11.5% Same-Store Sales Decline in Q4
- Sales Decline: Sweetgreen reported an 11.5% decline in same-store sales for Q4, primarily driven by a 13.3% drop in traffic, although a 1.8% benefit from menu price increases partially offset this decline, indicating a more selective consumer environment that poses near-term challenges for the business.
- Loyalty Program Transition: The shift to SG Rewards has created short-term headwinds, yet Sweetgreen believes this transition will lay the groundwork for more sustainable customer engagement in the long run, enhancing brand loyalty.
- Future Outlook: The company anticipates a same-store sales decline of between 4.0% and 2.0% for the full fiscal year and plans to open approximately 15 new restaurants, with about half featuring the Infinite Kitchen model aimed at improving operational efficiency and customer experience.
- Menu Innovation Testing: Sweetgreen plans to test new wraps at select locations in New York, the Midwest, and California, starting at $10.95, with a full lineup priced below $15; if successful, this initiative will be expanded by mid-2026, highlighting the company's focus on menu innovation to drive growth.
See More
Cava Shares Surge While Fast-Casual Competitors Chipotle and Sweetgreen Struggle
- Stock Performance: Cava Group's stock rose over 20% following strong fourth-quarter results that exceeded Wall Street expectations.
- Future Outlook: The company provided guidance indicating a potential recovery in 2026, although challenges for fast-casual restaurants remain.
See More
Sweetgreen Earnings Preview: Revenue Expectations Decline
- Revenue Expectations Decline: Sweetgreen reported $172.4 million in revenue last quarter, flat year-over-year and missing analyst expectations, with full-year revenue and EBITDA guidance significantly below forecasts, indicating growth challenges ahead.
- Market Expectation Shift: This quarter, analysts expect Sweetgreen's revenue to decline by 1.2% year-over-year, contrasting sharply with the 5.1% increase recorded in the same quarter last year, highlighting the company's struggles in a competitive fast-food market.
- Analyst Confidence Wanes: Although analysts have generally reaffirmed their estimates over the past 30 days, Sweetgreen has repeatedly missed Wall Street's revenue estimates over the last two years, reflecting a cautious market outlook on its future performance.
- Poor Stock Performance: Sweetgreen's stock has dropped 18.5% over the past month, while the modern fast food sector has averaged a 4.6% decline, with the current share price at $5.45 against an average analyst price target of $7.90, indicating a lack of confidence in its growth prospects.
See More
Sweetgreen Prepares for Earnings Release Amid Wrap Launch
New Product Offering: Sweetgreen is introducing a new way to enjoy salads by wrapping them in a tortilla.
Innovation in Fast Casual Dining: This move reflects Sweetgreen's strategy to innovate and diversify its menu options for customers.
See More
SWEETGREEN INC: UBS Lowers Price Target to $6.5 from $7.5
- Price Adjustment: The target price for Sweetgreen's stock has been reduced from $7.50 to $6.50.
- Market Impact: This adjustment reflects changes in market conditions and investor sentiment regarding the company's performance.
See More
Sweetgreen (SG) Q4 2025 Earnings Call Transcript
See More
Sweetgreen Reports 11.5% Same-Store Sales Decline in Q4
- Sales Decline: Sweetgreen reported an 11.5% decline in same-store sales for Q4, primarily driven by a 13.3% drop in traffic, although a 1.8% benefit from menu price increases partially offset this decline, indicating a more selective consumer environment that poses near-term challenges for the business.
- Loyalty Program Transition: The shift to SG Rewards has created short-term headwinds, yet Sweetgreen believes this transition will lay the groundwork for more sustainable customer engagement in the long run, enhancing brand loyalty.
- Future Outlook: The company anticipates a same-store sales decline of between 4.0% and 2.0% for the full fiscal year and plans to open approximately 15 new restaurants, with about half featuring the Infinite Kitchen model aimed at improving operational efficiency and customer experience.
- Menu Innovation Testing: Sweetgreen plans to test new wraps at select locations in New York, the Midwest, and California, starting at $10.95, with a full lineup priced below $15; if successful, this initiative will be expanded by mid-2026, highlighting the company's focus on menu innovation to drive growth.
See More
Cava Shares Surge While Fast-Casual Competitors Chipotle and Sweetgreen Struggle
- Stock Performance: Cava Group's stock rose over 20% following strong fourth-quarter results that exceeded Wall Street expectations.
- Future Outlook: The company provided guidance indicating a potential recovery in 2026, although challenges for fast-casual restaurants remain.
See More
Sweetgreen Earnings Preview: Revenue Expectations Decline
- Revenue Expectations Decline: Sweetgreen reported $172.4 million in revenue last quarter, flat year-over-year and missing analyst expectations, with full-year revenue and EBITDA guidance significantly below forecasts, indicating growth challenges ahead.
- Market Expectation Shift: This quarter, analysts expect Sweetgreen's revenue to decline by 1.2% year-over-year, contrasting sharply with the 5.1% increase recorded in the same quarter last year, highlighting the company's struggles in a competitive fast-food market.
- Analyst Confidence Wanes: Although analysts have generally reaffirmed their estimates over the past 30 days, Sweetgreen has repeatedly missed Wall Street's revenue estimates over the last two years, reflecting a cautious market outlook on its future performance.
- Poor Stock Performance: Sweetgreen's stock has dropped 18.5% over the past month, while the modern fast food sector has averaged a 4.6% decline, with the current share price at $5.45 against an average analyst price target of $7.90, indicating a lack of confidence in its growth prospects.
See More
Sweetgreen Prepares for Earnings Release Amid Wrap Launch
New Product Offering: Sweetgreen is introducing a new way to enjoy salads by wrapping them in a tortilla.
Innovation in Fast Casual Dining: This move reflects Sweetgreen's strategy to innovate and diversify its menu options for customers.
See More
SWEETGREEN INC: UBS Lowers Price Target to $6.5 from $7.5
- Price Adjustment: The target price for Sweetgreen's stock has been reduced from $7.50 to $6.50.
- Market Impact: This adjustment reflects changes in market conditions and investor sentiment regarding the company's performance.
See More
