Sweetgreen Earnings: Analysts Cut Price Target to $14.00 Amid Revenue Miss and Losses

Sweetgreen's latest Q2 earnings report shows revenues of $186m, missing expectations, and a statutory loss of $0.20, 64% larger than predicted. Analysts have updated their earnings model, with expectations for revenues of $710.6m in 2025, a 3.5% increase, and a loss per share of $0.78. The average price target fell 30% to $14.00, with a range of estimates from $10.00 to $21.00 per share.

Sweetgreen, Inc. (SG) released its second-quarter (Q2) 2025 earnings report, revealing revenues of $186 million, which fell short of Wall Street's expectations. The company reported a statutory loss of $0.20 per share, 64% higher than the predicted loss of $0.12 per share. This quarterly report represents an earnings surprise of -66.67%, as the company missed both revenue and earnings estimates [1].

Sweetgreen's revenue of $186 million was a 3.3% miss compared to the Zacks Consensus Estimate of $191.8 million, while its adjusted earnings per share (EPS) of -$0.20 was 64.3% below the expected -$0.12 per share. The company also missed its adjusted EBITDA estimate by 3.5%, with a figure of $6.42 million compared to the expected $11.02 million [3].

The company's full-year revenue guidance for 2025 was revised downward to $707.5 million at the midpoint, a 4.4% decrease from the previous estimate of $750 million. The adjusted EBITDA guidance for the full year was also reduced to $12.5 million, below the expected $25.83 million. These revisions reflect the company's challenges in maintaining growth and profitability [3].

Analysts have updated their earnings models following Sweetgreen's Q2 earnings report. The consensus revenue estimate for the current fiscal year is $710.6 million, representing a 3.5% increase from the previous estimate. The average price target has fallen 30% to $14.00, with a range of estimates from $10.00 to $21.00 per share [2].

Goldman Sachs, one of the key analysts, lowered its price target on Sweetgreen to $11.00 from $15.00, while maintaining a Neutral rating. The investment bank cited the company's revenue and earnings misses, as well as its downward revision of full-year guidance, as reasons for the lower target [2].

Sweetgreen's stock has been under pressure, losing about 61.6% since the beginning of the year compared to the S&P 500's gain of 7.9%. The company's shares have also fallen to their 52-week low of $11.84 [2].

Investors should closely monitor Sweetgreen's earnings call and future earnings reports to gauge the company's performance and growth prospects. The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call and any updates to the company's guidance [1].

References:
[1] https://www.nasdaq.com/articles/sweetgreen-inc-sg-reports-q2-loss-lags-revenue-estimates
[2] https://www.investing.com/news/analyst-ratings/goldman-sachs-lowers-sweetgreen-stock-price-target-to-11-on-earnings-miss-93CH-4179336
[3] https://finance.yahoo.com/news/sweetgreen-nyse-sg-misses-q2-212129204.html