Sweetgreen Stock Declines Amid Broader Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Stock Decline: Sweetgreen's shares fell 15.1% this week, primarily due to a broader sell-off in growth stocks and a reaffirmed sell rating from Goldman Sachs, indicating a lack of confidence in the fast-casual salad chain's prospects.
- Goldman Sachs Rating Adjustment: Analyst Christine Cho raised Sweetgreen's price target from $5 to $5.60 while maintaining a sell rating, reflecting a cautious outlook on the company's future performance despite the slight target increase.
- Market Environment Impact: Although Starbucks reported a 4% growth in comparable sales in the U.S., signaling a potential boost in consumer spending, the overall market sentiment remains negative for Sweetgreen, particularly with tech and growth stocks faltering.
- Management Turmoil: Sweetgreen is experiencing significant management changes, including the departure of co-founder and Chief Brand Officer Nathaniel Ru, raising investor concerns about the company's future direction and strategic execution capabilities.
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Analyst Views on SG
Wall Street analysts forecast SG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SG is 7.57 USD with a low forecast of 5.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 6.130
Low
5.00
Averages
7.57
High
10.00
Current: 6.130
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 Shares Decline Amid Broader Market Sell-Off
- Stock Decline: Sweetgreen's shares fell 15.1% this week, reflecting a broader sell-off in growth stocks, and despite an upbeat report from Starbucks, the market remains concerned about the fast-casual sector.
- Rating Reaffirmation: Goldman Sachs reiterated its sell rating on Sweetgreen while raising the price target from $5 to $5.60, with analyst Christine Cho noting that while restaurant stocks have outperformed the S&P 500, the industry still faces significant challenges.
- Market Sentiment Volatility: Sweetgreen's stock has been swinging since its third-quarter earnings report last November, indicating its sensitivity to market sentiment, particularly amid weakness in tech and growth stocks.
- Management Changes: Recent departures of key executives, including co-founder Nathaniel Ru and CFO Mitch Reback, have added uncertainty to Sweetgreen's future, raising concerns about its strategic direction and operational stability.
Continue Reading
Sweetgreen Stock Declines Amid Broader Sell-Off
- Stock Decline: Sweetgreen's shares fell 15.1% this week, primarily due to a broader sell-off in growth stocks and a reaffirmed sell rating from Goldman Sachs, indicating a lack of confidence in the fast-casual salad chain's prospects.
- Goldman Sachs Rating Adjustment: Analyst Christine Cho raised Sweetgreen's price target from $5 to $5.60 while maintaining a sell rating, reflecting a cautious outlook on the company's future performance despite the slight target increase.
- Market Environment Impact: Although Starbucks reported a 4% growth in comparable sales in the U.S., signaling a potential boost in consumer spending, the overall market sentiment remains negative for Sweetgreen, particularly with tech and growth stocks faltering.
- Management Turmoil: Sweetgreen is experiencing significant management changes, including the departure of co-founder and Chief Brand Officer Nathaniel Ru, raising investor concerns about the company's future direction and strategic execution capabilities.
Continue Reading