Why Sweetgreen Stock Was Going Sour This Week
Key Points
Sweetgreen remained volatile as investors are uncertain about its turnaround potential.
Goldman Sachs reiterated a sell rating on the stock.
A strong report form Starbucks wasn't enough to give Sweetgreen a boost.
- 10 stocks we like better than Sweetgreen ›
Shares of Sweetgreen (NYSE: SG) were heading lower again this week as a broader sell-off in growth stocks and a reaffirmed sell rating from Goldman Sachs weighed on the struggling fast-casual salad chain.
Even an upbeat report from Starbucks wasn't enough to give Sweetgreen a boost, and the fast-casual stock was down 15.1% for the week as of 2:05 p.m. ET, according to data from S&P Global Market Intelligence.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Sweetgreen slides again
There was no major news out on Sweetgreen this week, but the stock has been swinging with broader market sentiment since it plunged following its third-quarter earnings report in November.
This week, Goldman Sachs weighed in on the stock, reiterating a sell rating but raising its price target from $5 to $5.60. Analyst Christine Cho noted that restaurant stocks have outperformed the S&P 500 this year, and household spending could get a boost from stimulus and tax cuts, though much of the industry is still struggling.
Starbucks had some positive news as it reported comparable sales growth of 4% in the U.S., a good sign for consumer discretionary spending, though that may be the result of CEO Brian Niccol's overhaul of the business.
Additionally, tech stocks and growth stocks faltered at the end of the week, adding to Sweetgreen's woes.
Can Sweetgreen bounce back?
Sweetgreen has a lot of potential as the leading fast-casual salad chain, but it also deserves to be in the penalty box after an awful 2025 that included plunging same-store sales and the sale of the automation platform behind the Infinite Kitchen, though it retained the rights to use it.
The good news for Sweetgreen is that it will have easier comparisons in 2026, but the stock remains a "show-me" story, especially after the departure of co-founder and Chief Brand Officer Nathaniel Ru, CFO Mitch Reback, and Chief Development Officer Chris Tarrant in recent months. We'll learn more when it reports fourth-quarter earnings at the end of February.
Should you buy stock in Sweetgreen right now?
Before you buy stock in Sweetgreen, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sweetgreen wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $448,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,180,126!*
Now, it’s worth noting Stock Advisor’s total average return is 945% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 30, 2026.
Jeremy Bowman has positions in Starbucks and Sweetgreen. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.
Recommended Articles
