Why Sweetgreen Stock Was Sinking Again
Key Points
Sweetgreen reported another dismal quarter.
Comparable sales fell by double digits, and revenue growth turned negative.
Management is hopeful that the introduction of wraps can spark a turnaround.
- 10 stocks we like better than Sweetgreen ›
Shares of Sweetgreen (NYSE: SG) were taking a dive today after the fast-casual salad chain posted another disappointing quarter, showing the business continues to head in the wrong direction.
Revenue fell on a double-digit decline in comparable sales, and its net loss widened again.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
As of 1:50 p.m. ET, the stock was down 10.5%.
Image source: Sweetgreen.
Sweetgreen goes from bad to worse
Sweetgreen capped off a disastrous year with its worst quarter yet.
Comparable sales plunged 11.5%, lapping a 4.4% increase in the quarter a year ago, and revenue fell 3.5% to $155.2 million, below expectations at $158.8 million.
Restaurant-level profit fell from $28 million to $16.2 million, and its net loss widened from $29 million to $49.7 million, or $0.42 per share, compared to $0.25 in the quarter a year ago. Wall Street had also expected a per-share loss of $0.25.
Management noted continued headwinds in the transition away from its Sweetpass+ loyalty program and a challenging spending environment for consumers.
It also acknowledged that it has to do better. CEO Jonathan Neman said, "We are moving with urgency through the 'Sweet Growth Transformation Plan' to strengthen the core of the business." The company is also testing wraps starting at $10.95 in select markets, and plans to expand them nationwide if they perform well.
Can Sweetgreen bounce back?
The company's 2026 guidance didn't inspire much confidence. It sees comparable sales declining 2%-4%, and expects restaurant-level profit margin of 14.2%-14.7%, below the 15.2% it recorded in 2025. It does see adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improving from a loss of $11 million to a profit of $1 million to $6 million, though that may just reflect scaled-back store openings, as it forecast 15 only new stores versus 35 in 2025.
At this point, the fast-casual company needs some kind of catalyst to turn things around. Keep an eye on the performance of the new wraps as the company has gotten a reputation for being overpriced and needs to work harder to deliver value for its customers.
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 $456,188!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,413!*
Now, it’s worth noting Stock Advisor’s total average return is 916% — a market-crushing outperformance compared to 194% 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 February 27, 2026.
Jeremy Bowman has positions in Sweetgreen. The Motley Fool recommends Sweetgreen. The Motley Fool has a disclosure policy.
Recommended Articles
