Track market-moving stories before they get noisy

Sweetgreen stock jumped 15% Friday, paring back a massive four-day slump, after regulators traced an explosive diarrhea outbreak back to Taco Bell restaurants – sparing the salad bowl chain’s reputation.

The fast-casual salad chain – known for its so-called “slop bowls” – saw its stock soar as much as 21% Friday for its biggest intraday gain since August 2024.

It plummeted nearly 26% from Monday through Thursday’s close as investors feared consumers would steer clear of fresh produce as thousands of people across several US states were sickened by cyclosporiasis.

Sweetgreen – known for its so-called “slop bowls” – saw its stock soar as much as 21% Friday. Boston Globe via Getty Images The Centers for Disease Control and Prevention and the Food and Drug Administration said late Thursday that they had linked the outbreak to shredded iceberg lettuce served at a handful of Taco Bell restaurants in Indiana, Kentucky, Michigan, Ohio and West Virginia.

On Friday, Bloomberg reported that Taylor Farms, a California-based fresh produce supplier, is preparing to recall ingredients linked to the outbreak.

“Sweetgreen does not use iceberg lettuce in our menu,” a spokesperson for Sweetgreen said in a statement. 

“From the outset of the investigation, we have been in close contact with our suppliers to determine whether any ingredients in our supply chain have been identified as part of the investigation. To date, none have been.”

Shares of Sweetgreen are still down nearly 15% this week, while Taco Bell has fallen about roughly 8% during the same timeframe – similarly regaining some losses after the fast-food giant said it has removed lettuce from the tainted supplier nationwide.

The FDA said it was able to link the outbreak to the burrito-and-taco chain after more than 1,644 sick people suffering from cyclosporiasis reported eating at Taco Bell locations in five states.

Shares of Sweetgreen are still down nearly 15% this week. Ai – stock.adobe.com Regulators said they are working directly with the unnamed supplier – now reportedly believed to be Taylor Farms – to determine if the contaminated iceberg lettuce was sent to any other partners.

Cyclospora is a microscopic parasite that is typically transmitted when infected feces contaminates food or water, according to the FDA.

It can cause an intestinal illness called cyclosporiasis, characterized by symptoms like watery diarrhea, loss of appetite, weight loss, stomach cramps or pain, bloating, gas, nausea and fatigue, according to food safety regulators. Some people may become infected and be asymptomatic.

The main risk from cyclosporiasis is dehydration that can lead to more serious complications. Those most at risk include people with weakened immune systems, the elderly and children.

Sweetgreen Today

SG

Sweetgreen

$8.71 +0.42 (+5.04%)

As of 11:07 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$4.49▼

$16.70P/E Ratio72.26

Price Target$8.04

Shares of Sweetgreen Inc. NYSE: SG have surged 60% over the past three months, rebounding from a steep selloff that began in late 2024 as concerns about slowing consumer demand mounted. The rally has some questioning whether the company's efforts to revive the business are finally gaining traction or if the stock is simply rebounding from deeply oversold levels.

Sweetgreen's core business remains unprofitable, and the company has missed Wall Street expectations more often than not since going public, including the most recent quarter, reported on May 8.

Get Sweetgreen alerts:

However, encouraging comments about its turnaround efforts seem to have sparked fresh optimism.

Sweetgreen Shares Have Surged Since Hitting March LowThe fast-casual chain, known for its salads and other healthy menu items, went public in late 2021, and its shares initially soared. However, the gains were short-lived, and the stock spent much of the next few years under pressure as the company struggled to turn a profit.

In 2024, things started to look up. The stock went from trading around $10 in January to above $44 by November. But as concerns about slowing consumer demand emerged, those gains quickly unraveled. By March 2026, the stock had plunged to an all-time low of $4.49. Since then, shares have rebounded sharply, surging nearly 100%.

The catalyst doesn't appear to be the company's most recent earnings report. Sweetgreen posted a first-quarter loss of 27 cents per share, wider than the 21-cent-per-share loss reported a year earlier and Wall Street's estimate for a 23-cent loss. Revenue of roughly $162 million fell nearly 3% year over year and missed expectations by about $2 million. The results marked the company's fourth consecutive earnings and revenue miss and its third straight quarter of declining revenue.

Turnaround Plan Is Showing Signs of TractionDespite the disappointing earnings report, the company's comments on its Sweetgrowth Transformation Plan, launched in November 2025 to help turn the business around, appeared to spark optimism among investors.

During the earnings call, co-founder and Chief Executive Jonathan Neman said, "We are beginning to see signs that the actions we are putting in place are gaining traction. We are seeing improvement in execution across our restaurants, greater consistency in the guest experience, and stronger alignment across our teams."

He added, "We saw improvement as the quarter progressed with a further step up in April."

Neman also expressed enthusiasm about the recent addition of wraps to the menu, which he described as Sweetgreen's "most significant menu expansion in several years." The company expects wraps to help drive traffic while making the brand more accessible because of its lower price point.

Sentiment Has Improved, But Wall Street Remains CautiousInvestors appeared encouraged by the company's comments about improving trends. In the weeks following the report, five analysts raised their price targets on the stock, while two upgraded their ratings.

Even with the recent upgrades, Wall Street remains somewhat cautious. The consensus rating on Sweetgreen is Hold, based on 12 Hold ratings, four Buys, and three Sells. The majority of analysts aren't anticipating upside over the next year. The average 12-month price target of just above $8 is roughly 5% below the current share price. Price targets range from a low of $4.50 to a high of $15.

There are other indicators that suggest sentiment may be improving as well. The number of shares sold short has fallen from roughly 25 million, or nearly 27% of float, at the end of March to less than 20 million, or roughly 20% of float, as of the most recent reporting period at the end of May. While the stock remains heavily shorted, some bearish investors appear to be backing away from the name.

Insiders also appear to be expressing confidence in the company. Over the past three months, Sweetgreen insiders purchased roughly $3.4 million worth of company stock. No insider sales were reported.

Despite Recent Rally, Stock Remains Well Below HighsEven after the recent rally, Sweetgreen shares are still trading around $9, well below their July 52-week high of $16.70 and far below the more than $44 level reached in November 2024.

The stock's steep decline has left Sweetgreen trading at a discount to several peers in the fast-casual restaurant sector, which could help explain the renewed interest in the shares.

On a price-to-sales basis, Sweetgreen stock trades at less than 1.6X sales, compared with roughly 8.3X for CAVA Group Inc. NYSE: CAVA, 3.4X for Chipotle Mexican Grill, Inc. NYSE: CMG, and 6.1X for Wingstop Inc. NASDAQ: WING. Shake Shack Inc. NYSE: SHAK, which plummeted after reporting disappointing Q1 results, is the closest comparison, trading at 1.7X sales.

Sweetgreen's rebound likely began as investors saw value in a stock that had been heavily sold off. More recently, however, signs of progress in the company's turnaround efforts appear to have provided additional support for the rally.

Sweetgreen, Inc. (SG) Price Chart for Wednesday, June, 24, 2026

While the company's financial results still leave plenty of room for improvement, investors seem increasingly focused on what comes next. The second-quarter earnings report in August should provide a clearer indication of whether the recent improvement in traffic trends continued and whether Sweetgreen is beginning to translate those gains into stronger financial performance.

Should You Invest $1,000 in Sweetgreen Right Now?Before you consider Sweetgreen, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Sweetgreen wasn't on the list.

While Sweetgreen currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Click the link to see MarketBeat's guide to investing in 5G and which 5G stocks show the most promise.

Get This Free Report