Track market-moving stories before they get noisy

JACKSONVILLE, Fla.--(BUSINESS WIRE)--sweetgreen, the mission-driven restaurant brand serving healthy food at scale, is bringing its first-ever Jacksonville location to 4624 Town Crossing Dr. in St. Johns Town Center on September 15. The restaurant marks sweetgreen's first location in Northeast Florida, with opening-day celebrations featuring local partnerships, special offerings and a chance to win a custom surfboard. Open daily from 10 a.m. to 10 p.m., the 2,560-square-foot restaurant will off.

[url="]sweetgreen[/url], the mission-driven restaurant brand serving healthy food at scale, will open its first Utah restaurant on September 8 at 2188 Highland

HONG KONG, Aug 19, 2026 - (ACN Newswire) - Everest Medicines (01952.HK) announced its interim results for the six months ended June 30, 2026. Everest delivered strong growth and reached an important profitability milestone in the first half of 2026. Total revenue increased 157% year-on-year to RMB 1.148 billion, driven by continued commercial momentum across the company's portfolio. Gross margin excluding non-cash items reached 73.7%, while operating expenses as a percentage of revenue decreased by 64.0 percentage points year-on-year, reflecting increasing operating leverage and execution efficiency.

From the first-half results, the company's growth drivers are broadening beyond the commercialization of core products to include portfolio expansion, monetization of innovative assets, and global expansion.

In the first half of 2026, the company achieved non-IFRS net profit of RMB 97.23 million, while IFRS net loss narrowed by 98% year-on-year. Everest ended the period with RMB 1.859 billion in cash. Following the reporting period, the company received approximately RMB 770 million in July from the upfront payment under its global licensing and collaboration agreement for civorebrutinib, further strengthening its financial position and capacity to invest in future growth.

Mr. Yifang Wu, Chairman of the Board of Everest Medicines, said: 'Everest Medicines has entered a new phase of development as an innovation-driven, integrated biopharmaceutical company. Guided by our 2030 Strategy, we are strengthening our capabilities in innovation, commercialization, and global development, accelerating the realization of global value and laying a stronger foundation for sustainable, high-quality growth.'

During the period, the company achieved profitability, while expanding its innovative pipeline and advancing its R&D programs. Through continued efforts to strengthen its BD capabilities, the company is developing a model that combines in-licensed and internally developed early-stage assets, exemplified by civorebrutinib (also known as EVER001), with internal incubation and development creating opportunities to out-license innovative assets and realize their value. At the same time, the company is bringing in high-quality mid- to late-stage assets, exemplified by NEFECON(R), while continuing to build its commercialization capabilities and generate further opportunities for BD partnerships. These efforts are enhancing the efficiency of innovation resource allocation and accelerating the translation of innovation into clinical and commercial value.

Everest's marketed portfolio continued to gain momentum

NEFECON(R) maintained strong sales momentum. In the first half of 2026, sales revenue from NEFECON(R) reached RMB 889 million, with net sales increasing 94% year-on-year. Through deeper penetration across key hospitals, broader market expansion, enhanced physician and patient education, and continued generation of real-world evidence, Everest is supporting broader adoption of treatment strategies focused on addressing underlying causes, early intervention, and long-term management. Following approval, VELSIPITY(R) moved rapidly into commercialization, with local manufacturing progressing. XERAVA(R) delivered steady hospital sales growth, while local manufacturing advanced as planned. The company also reached an understanding with Hainan Herui Pharmaceutical Co., Ltd. regarding certain NEFECON(R)-related patent matters and entered into a commercialization collaboration for budesonide enteric capsules, further broadening treatment options for patients.

Meanwhile, commercialization services for Hasten Biopharmaceuticals continued to contribute to revenue growth. Services for mature products under the CSO arrangement commenced in March 2026, generating RMB 145 million in service revenue and RMB 28 million in commercialization profit in the first half of the year.

Mr. Rogers Yongqing Luo, Chief Executive Officer of Everest Medicines, said: 'In the first half of 2026, the company continued to execute its strategy and accelerate the translation of innovation into clinical and commercial value. Solid progress across commercialization, BD, in-house R&D, and global expansion further strengthened our foundation for sustainable growth and our ability to bring innovative therapies to patients.

Our BD strategy is building a diversified portfolio of future growth drivers through global partnerships for internally developed assets and selective in-licensing of differentiated innovative assets, while our in-house R&D continues to generate clinical progress. With the establishment of a pan-Asia-Pacific commercialization platform, we are also extending our proven capabilities from China into other Asian markets.'

EVER001 global licensing deal expected to accelerate overseas development

In June, the company entered into an exclusive licensing and collaboration agreement with Travere Therapeutics, Inc. ( TVTX) for the development and commercialization of civorebrutinib (also known as EVER001) in all markets outside China and certain countries in East and Southeast Asia. The deal has a total potential value of up to $1.1425 billion, including an upfront payment of $112.5 million and up to approximately $1.03 billion in additional cash payments tied to specified clinical development, regulatory and commercial milestones across up to five indications. Travere will also pay tiered royalties on future sales in its licensed territories, ranging from high single-digit to double-digit percentages based on annual net sales thresholds.

CICC believes the partnership is expected to accelerate the global clinical development and commercialization of EVER001 and could advance its development in membranous nephropathy. BOCOM International is positive on EVER001's overseas market potential and its development opportunities across additional indications. EVER001 achieved positive 52-week Phase 1b/2a clinical results, and a Phase 2 basket trial has been initiated in China to further evaluate its potential in autoimmune kidney diseases, including FSGS, MCD, and IgAN.

BD expansion further strengthens the product pipeline

The company continued to selectively introduce mid- to late-stage assets with strong commercial potential. MT1013, DMX-200, and Bejescin(R) strengthened its nephrology and autoimmune portfolio; CARDAMYST(R) and Sumecigrel (formerly known as Vicagrel) further expanded its cardiovascular portfolio; and LNZ100, together with VIS-101, enhanced its ophthalmology portfolio.

With multiple assets moving through key regulatory and commercialization milestones, the company is building a diversified portfolio of future growth drivers. CARDAMYST(R) is expected to receive approval in the third quarter of 2026, LEROCHOL(R) and LNZ100 are expected to receive approval in 2027, and MT1013 is expected to receive approval in 2028.

In-house R&D and pan-Asia-Pacific expansion advance

The company's in-house R&D also translated into clinical progress. The company's proprietary AI+mRNA platform also advanced, with its personalized mRNA cancer vaccine EVM16 achieving its first-in-human clinical data readout and planned to enter an investigator-initiated Phase 1b study in the fourth quarter of 2026. EVM18, the company's in vivo CAR-T therapy, has initiated IIT studies across multiple autoimmune diseases and is advancing toward global IND filings.

The acquisition of Hasten Biopharmaceuticals (SG) Pte. Ltd. further strengthened the company's global commercialization capabilities and established a pan-Asia-Pacific commercialization platform. The platform provides a foundation for scaling the company's proven commercialization capabilities from China across Asian markets, supporting the regional expansion of both existing and future products.

Meanwhile, CBC Group and the company's Directors have collectively purchased 5.163 million shares since December 2025, with the transactions totaling more than HK$172.5 million, demonstrating their confidence in the company's strategic direction and long-term prospects.

Overall, Everest Medicines is gradually developing a growth model built on the commercialization of core products, portfolio expansion through BD, a pipeline of innovative assets generated through in-house R&D, and international expansion through global partnerships and its pan-Asia-Pacific platform. As the company enters its new phase, the coordinated strengthening of its capabilities in innovation resource integration, commercialization, and global development is expected to provide an important foundation for future growth.

Source: Everest Medicines Limited

Copyright 2026 ACN Newswire . All rights reserved.

Sweetgreen Inc. CEO Jonathan Neman says the cyclospora outbreak had an impact on the business but the US FDA now says it's safe to eat iceberg lettuce again. He says Sweetgreen's supply chain isn't affected by the cyclospora outbreak and its restaurants don't serve that kind of lettuce.

MarketBeat Week in Review – 06/22 - 06/26Sweetgreen NYSE: SG reported second-quarter 2026 revenue of $192.7 million, up approximately 4% from a year earlier, while comparable restaurant sales declined 6.2%. The company said transaction trends improved sequentially during the quarter, reaching roughly flat comparable transactions in June, but momentum was disrupted in mid-July by consumer concerns surrounding a Cyclospora outbreak attributed to iceberg lettuce.

Chief Executive Officer Jonathan Neman said Sweetgreen does not use iceberg lettuce and has received no indication from suppliers or public health authorities that it is connected to the outbreak. Still, the company incorporated the expected impact of the headlines and a range of recovery scenarios into its revised full-year outlook.

Get Sweetgreen alerts:

Investors Are Buying Into Sweetgreen Again—Should They?Sweetgreen also said it proactively removed jalapenos from an affected supplier following a separate voluntary recall announced the day before the call. Jalapenos are used only in two of its 15 dressings and represent a small part of sales, Neman said. The company has not included any potential effect from that matter in its outlook because it was too early to estimate.

Quarterly Sales and Profitability Comparable sales were pressured by a 2% decline in transactions and a 4.2% decline in product mix. Sweetgreen did not take a year-over-year menu price increase. Chief Financial Officer Jamie McConnell said the mix headwind reflected targeted promotions aimed at reengaging customers, the lower entry price of its wraps, and a comparison with higher side-item attachment following the prior-year introduction of Ripple Fries, which were discontinued in the third quarter of 2025.

Why Consumers Are Abandoning Chipotle, Sweetgreen and CavaThe company’s comparable transaction trend improved from an 11.2% decline in the first quarter to declines of about 3% in April and May, before reaching approximately flat in June. McConnell said wraps and early operational improvements supported that progress.

Restaurant-level profit was $25.2 million, or 13.1% of revenue, compared with an 18.9% margin a year earlier. Food, beverage and packaging costs rose about 210 basis points as a percentage of revenue, primarily due to higher ingredient usage, investments in portions and promotions. Labor and related expenses increased about 170 basis points, largely from sales deleverage and wage inflation.

Adjusted EBITDA was a loss of $200,000, compared with adjusted EBITDA of $6.4 million in the prior-year quarter. Sweetgreen ended the quarter with $142.6 million in cash and 287 restaurants, including 35 locations powered by its Infinite Kitchen technology.

Wraps Drive Frequency but Pressure Check Mix Management highlighted the national launch of wraps as a major element of its sales strategy. Neman said wraps maintained approximately 20% incidence, exceeding the company’s expectations, and generated about 200 basis points of comparable-sales uplift, including roughly 500 basis points of transaction improvement.

More than half of guests who ordered a wrap returned within 30 days, according to the company. Neman said wrap customers showed about a five-point increase in frequency, and wraps achieved the strongest return rate among Sweetgreen menu items, exceeding that of the Harvest Bowl.

However, the accessible price point created a check and product-mix headwind. McConnell said the gap between the transaction contribution of wraps and their reported comparable-sales contribution was “all primarily related to the lower check.” She added that wraps are priced with margins comparable to other menu items.

The company expects product mix to remain a low-single-digit headwind in the second half of 2026 as it reduces promotional activity and laps the prior-year Ripple Fries comparison. Management said it has been targeting promotions more narrowly toward lapsed guests rather than broadly extending offers to all loyalty members.

Operational, Marketing and Menu Initiatives Neman said Sweetgreen is prioritizing restaurant throughput, with an emphasis on ensuring locations are “Rush Ready Before Peak” periods. At its highest-volume restaurants, frontline peak entrees prepared per hour increased from the low 50s in May to the low 60s in June after the company introduced more structured weekly throughput accountability. On its busiest days, its best restaurants exceeded 250 entrees per hour, he said.

New regional general managers in New York and Seattle helped those markets return to positive transaction comparisons during the second quarter, according to Neman. The company is also redesigning training for head coaches, kitchen leads and team members, while testing restaurant-specific scheduling and deployment models intended to better align labor with peak demand.

On the menu, Sweetgreen plans to continue wrap innovation, launch seasonal Brussels sprouts in the fall and introduce a collaboration with a chef later this year. Management also said it sees an opportunity to expand dinner occasions through protein-forward plates. Neman cited the relaunched Hot Honey Chicken Plate, which he said produced a 30% improvement in its 30-day reorder rate.

Sweetgreen is testing a redesigned Create Your Own ordering and pricing experience that includes a protein in the base price and offers greater transparency around premium add-ons. The test began in Indianapolis, expanded to the Washington, D.C., market, and recently reached Southern California and Orange County. Neman said customer feedback has been encouraging, though it remains too early to assess transaction or frequency effects.

Updated 2026 Outlook Sweetgreen lowered its full-year outlook to reflect the Cyclospora-related disruption. The company now expects:

Comparable restaurant sales to decline between 8% and 7% for full-year 2026. Restaurant-level profit margin of 10.5% to 11%. Adjusted EBITDA loss of $27 million to $23 million. The outlook assumes a 600- to 700-basis-point comparable-sales impact in the third quarter from the disruption. The low end assumes a partial recovery in the fourth quarter, while the high end assumes a return to the pre-disruption trend at the start of the fourth quarter. Sweetgreen estimated that the disruption will reduce full-year comparable sales by 200 to 300 basis points, restaurant-level margin by 100 to 150 basis points, and adjusted EBITDA by $7 million to $10 million.

Looking ahead, Neman said Sweetgreen intends to maintain a conservative restaurant development pace, similar to or slower than its pace this year, while refining restaurant prototypes, construction costs, market selection and unit economics. The company opened four restaurants and closed two during the second quarter, and it entered Tennessee in July with an opening in Nashville’s Gulch neighborhood.

About Sweetgreen (NYSE:SG)Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company's menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

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

With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.

Get This Free Report

Sweetgreen (SG -8.01%) delivered another disappointing earnings report Thursday after hours, and while there were some signs of progress in its turnaround efforts, it clearly wasn't enough as the stock was trading down double digits Friday morning before recouping some of those losses.

Image source: Sweetgreen.

Trends are improving, but the numbers are still declining The clearest picture from the report is that Sweetgreen's results are moving in the right direction, but not fast enough, and sales and profits are still declining.

Its same-store sales decline improved from 12.8% in the first quarter to 6.2% in the second quarter, but that's still a substantial slide. The nationwide roll-out of wraps in the second quarter drove some momentum for the company. Same-store traffic was down just 2% in the quarter, with a 4% decline in sales and mix due to promotions and comparatively lower prices for wraps than bowls.

The company also showed positive momentum in the quarter as same-store traffic was flat in June after falling by 3% in April and May. Management said that comps were positive for the first 10 days of July before the cyclospora outbreak. Based on those results, Sweetgreen seemed to be on its way to a strong second half. However, the turnaround hit a wall due to the cyclospora outbreak that started in mid-July. Even though Sweetgreen's products weren't directly affected by the outbreak, and the company doesn't even use iceberg lettuce, consumer fears led to a downturn in fresh salad consumption, which cut July comparable sales by an estimated 600 basis points.

As a result of the outbreak, management slashed its same-store sales guidance for the full year from a decline of 2%-4% to down 7%-8%, and it cut adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance to a loss of $23 million-$27 million from a profit of $1 million-$6 million.

Management said, "The pace and timing of recovery remain uncertain" due to the outbreak.

Today's Change

(

-8.01

%) $

-0.47

Current Price

$

5.40

There's still light at the end of the tunnel Management acknowledged that its results need to be better, but it pointed to a number of operational improvements that should deliver results in the coming quarters.

Throughput is improving as the company said that some restaurants are able to turn out 250 entrees in an hour, compared to just 50 in others, and it said that wrap adoption continues to grow in the markets where it first introduced it, New York and Seattle.

The company also introduced a modified create-your-own pricing structure in order to eliminate the sticker shock from customers building their own bowls, which should help solve the company's value perception challenges.

Overall, Sweetgreen still seems to have an appealing opportunity for recovery because its food has always been popular. Even after a year-and-a-half of declining sales, its average sales per restaurant is still $2.5 million, above the industry average in the fast food industry, and management believes it can get back to previous levels at $3 million, which would put it in line with Chipotle, the fast-casual leader.

The company's challenges have traditionally centered around value perception and throughput. Consumers like its food, but find it too expensive or say its lines are too long. Its experience with ripple fries are a good example of this. The company introduced the popular product last year, but it slowed down kitchen speeds too much, so it got rid of it after five months.

However, management is now clearly focused on tackling its pricing and throughput, and if its initiatives pay off, comparable sales should turn around. Management noted that it's trailed its peer group in price increases by 13 percentage points since 2019, so it's bringing prices more in line with peers, and it didn't raise prices in the last year.

Additionally, the positive comps in the first 10 days of July show the business was on the right track before the cyclospora outbreak.

Given that the business looks stronger than the stock slide or the report makes it look. With the cyclospora outbreak still continuing, investors will need to have patience, but the business seems like it's on the right track to recovery.

As the cyclosporiasis outbreak continues to rage across the United States, salad chains like Sweetgreen are preparing for a significant decline in sales.

Shares of Sweetgreen (SG -7.07%) were taking another post-earnings dive after the fast-casual salad chain missed second-quarter estimates and cut its guidance for the year due to the impact of the cyclospora outbreak, though the company has not been directly affected by it.

As of 9:58 a.m. ET, the stock was down 13.2% on the news.

Image source: Sweetgreen.

Sweetgreen shrinks again The fast-casual chain said same-store sales fell 6.2%, an improvement from the first quarter when they were down 12.8%, but that's still a substantial decline.

Revenue, boosted by new store openings, increased 3.8% to $192.7 million, which missed the consensus at $194.5 million.

Other key metrics were moving in the wrong direction as well. Restaurant-level profit margin fell from 18.9% to 13.1%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $6.4 million to a loss of $0.2 million.

On the bottom line, its generally accepted accounting (GAAP) loss per share expanded from $0.20 to $0.22, worse than the consensus at a loss of $0.12.

Despite the disappointing results, the trend in the quarter was positive. Same-store traffic was down just 2%, with the remaining decline due to price and sales mix, as the company rolled out wraps nationally in the quarter, which are cheaper than its bowls. Average transaction was also down due to discounting. It exited the quarter with flat same-store traffic in June.

"Our results are not where they need to be, but the progress we saw in the second quarter reinforces our confidence that the plan is working."

Today's Change

(

-7.07

%) $

-0.42

Current Price

$

5.46

Cyclospora adds another challenge As the improvement in traffic seems to indicate, Sweetgreen's performance was recovering, but the cyclospora outbreak, which began in mid-July, has turned customers off, even though Sweetgreen has not been directly affected by it and does not use iceberg lettuce, the implicated food item.

Management said, "The pace and timing of recovery remain uncertain," and said it lowered same-store sales by 600 basis points in July.

As a result, it cut its full-year same-store sales guidance to a decline of 7%-8% from a previous range of down 2%-4%. It also now expects an adjusted EBITDA loss of $23 milion-$27 million, compared to an earlier view of a profit of $1 million-$6 million.

The cyclospora setback is unfortunate, as the company seemed to be progressing before it. If investors can look past it, there still seems to be upside potential to the stock if it can return to positive comparable sales growth, though that will take time.

Between hellacious jalapeños and lamentable lettuce, salad-centric chains are getting slammed.

The latest victim is Sweetgreen, shares of which fell 10% Friday after the “slop bowl” chain said diners are avoiding its salads over fears of a cyclospora outbreak and removed jalapeño peppers from its restaurants due to a separate string of illnesses.

In its earnings report Thursday evening, Sweetgreen slashed its full-year forecast to an adjusted loss before interest, taxes, depreciation and amortization of $27 million to $23 million – much deeper than its previous estimate of $1 million to $6 million.

Sweetgreen shares fell 13% Friday after the “slop bowl” chain said diners are avoiding its salads over fears of a cyclospora outbreak. Getty Images The company also said it expects its annual same-store sales could shrink 7% to 8% this year, worse than a previous forecast of a 2% to 4% decline.

“The company’s updated outlook reflects reduced consumer demand for fresh prepared foods due to the multistate outbreak of cyclosporiasis since mid-July,” Sweetgreen said in a statement.

“The pace and timing of recovery remain uncertain.”

For the second quarter ending June 28, Sweetgreen’s same-store sales fell 6.2% – its sixth straight decline.

The stock has plunged roughly 30% since mid-July as fearful diners avoid salads and fresh produce over fears of cyclospora, an explosive diarrhea-causing parasite – even though Sweetgreen and its products have not been linked to the outbreak.

But it seems Sweetgreen’s outbreak troubles are not yet behind the salad chain, as it revealed on Thursday that it removed jalapeños from its supply chain earlier this week amid a new salmonella outbreak.

In its earnings report Thursday evening, Sweetgreen slashed its full-year forecast. Boston Globe via Getty Images “In a separate and unrelated matter, a voluntary recall involving jalapeños was issued yesterday. As an added precaution, we proactively removed and discarded all jalapeño from the supplier in the affected areas,” CEO Jonathan Neman said during an earnings call Thursday.

“Jalapeños are used in only two of our 15 dressings and nowhere else on our menu, representing a very small portion of our sales mix. Because the communication was issued only yesterday, it is too early to reasonably estimate any potential impact,” Neman added.

The salmonella outbreak — which has sickened at least 345 people and led to 36 hospitalizations across the country — has been linked to fresh jalapenos from Mexico supplied by Coast Citrus Distributors.

Chipotle and QDOBA, a Mexican fast-casual restaurant chain, both received shipments from Coast Citrus and have since removed the impacted peppers from their stores, according to the FDA.

Meanwhile, shoppers are still avoiding restaurant menu items with lettuce and fresh produce at the grocery stores as they fear an outbreak of cyclosporiasis that has sickened at least 10,000, caused around another 10,000 suspected cases, hospitalized hundreds and led to two deaths, according to the CDC.

Sweetgreen has not been linked to the outbreak.

The FDA has tied the pestilential plague to iceberg lettuce from a Taylor Farms facility in Mexico. 

Sweetgreen said it removed jalapeño peppers from its restaurants due to a separate outbreak. Pixel-Shot – stock.adobe.com Taco Bell is the only major national restaurant chain to be linked to the outbreak, though it has already recalled the contaminated products and started to see sales bounce back. 

Many other restaurants have been hit by the dampened demand for lettuce.

Chipotle said its sales weakened about 2% around the time of the outbreak in the second half of July.

Earlier this week, Salad and Go filed for bankruptcy and announced plans to close all of its locations, saying the cyclospora outbreak “compounded” challenges it was already facing.

Cyclospora is a microscopic parasite that is typically transmitted when food or water is contaminated with infected feces.

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 show no symptoms after becoming infected.

Item 1 of 2 The Sweetgreen logo is displayed on a banner, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York City, U.S., November 18, 2021. REUTERS/Shannon Stapleton

[1/2]The Sweetgreen logo is displayed on a banner, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York City, U.S., November 18, 2021. REUTERS/Shannon... Purchase Licensing Rights, opens new tab Read more

CompaniesAug 7 (Reuters) - Shares of Sweetgreen (SG.N), opens new tab slumped 15% in premarket trading on Friday, a day after the salad chain slashed its annual same-store-sales projections as consumers grew wary of fresh produce ​amid a wide outbreak of cyclosporiasis in the U.S.

U.S. cyclosporiasis cases have climbed to ‌record levels this year with the current outbreak among the largest caused by foodborne illnesses in recent national history.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

The illness, which can be contracted by consuming food — typically raw fruits and vegetables — or water contaminated with ​feces, can cause diarrhea, nausea and other gastrointestinal symptoms.

The current outbreak, tied to ​recalled iceberg lettuce from central Mexico, has led some U.S. consumers to ⁠buy less lettuce and avoid some restaurant chains as the outbreak raises concerns about food safety.

While ​U.S. health authorities are continuing to look for sources of the illness beyond iceberg lettuce, Sweetgreen ​has reiterated that iceberg lettuce is not used anywhere on its menu and has no indication from health authorities or its suppliers that the company is linked to the outbreak.

The company now expects a 7% ​and 8% decline in annual same-store sales, compared with its previous forecast for a 2% ​to 4% drop. Sweetgreen said its guidance reflects reduced consumer demand since mid-July due to concerns surrounding the ‌outbreak.

For ⁠the second quarter ended June 28, same-store sales declined for a sixth straight quarter, falling 6.2%, but an improvement over the 7.6% decline a year earlier.

"Beginning in mid-July, heightened consumer concern related to the recent cyclospora headlines disrupted that momentum, and the impact to July comparable sales ​was about 600 basis ​points," CFO Jamie ⁠McConnell said on a post-earnings call on Thursday.

"While the timing of a full recovery is difficult to predict, we are confident in our ​ability to rebuild momentum," McConnell added.

Sweetgreen's shares have fallen nearly 30% since ​mid-July, when ⁠concerns about the outbreak began weighing on restaurant chains that rely heavily on fresh produce.

The company, along with other salad chains, has posted notices emphasizing that it does not use iceberg lettuce ⁠to reassure ​customers.

Sweetgreen, which has a market capitalization of roughly $700 million, ​separately said on Thursday it had also recalled some jalapenos earlier this week, as health authorities are also investigating a ​Salmonella outbreak linked to Mexican jalapeno peppers.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Sweetgreen, Inc. (SG - Free Report) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to a loss of $0.2 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -69.23%. A quarter ago, it was expected that this company would post a loss of $0.23 per share when it actually produced a loss of $0.27, delivering a surprise of -17.39%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

Sweetgreen, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $192.66 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.05%. This compares to year-ago revenues of $185.58 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Sweetgreen shares have lost about 9.8% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for Sweetgreen?While Sweetgreen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Sweetgreen was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.16 on $183.68 million in revenues for the coming quarter and $0.64 on $705.42 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Arcos Dorados (ARCO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13.

This restaurant owner is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of +36.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Arcos Dorados' revenues are expected to be $1.28 billion, up 12.1% from the year-ago quarter.

Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Carol Massar and Tim Stenovec. -------- More on Bloomberg Television and Markets Like this video?

The company now expects same-store sales to drop between 7% and 8% due to lower demand from the multistate cyclosporiasis outbreak.

Sweetgreen (SG -8.22%) has served up a sour bowl for investors over the last year and a half.

The stock is down 86% from its peak in late 2024, amid a wide range of challenges. Discretionary spending on fast-casual food slowed broadly in response to ongoing inflation and the “K-shaped economy.” The company changed its loyalty program, leaving members of the earlier Sweetpass membership program miffed, and it sold Spyce, the unit that owns the Infinite Kitchen, though it retained the rights to use it.

As a result, with comparable sales falling by double digits in the first quarter, investors seem to have given up on what was once one of the most promising growth stories in the restaurant industry.

However, Sweetgreen appears to be on the verge of a turnaround. Here are a few reasons the stock could soar on its second-quarter earnings report, due after hours on Thursday.

Image source: The Motley Fool.

1. Wraps are resonatingSweetgreen launched wraps nationally in May, and the product seems to solve a number of problems for the company. First, it offers customers a cheaper option, helping to assuage concerns about a lack of value from its menu. Second, it matches competing handheld menu items from other fast-casual chains like Chipotle and Cava, offering an alternative to customers who don’t want a salad; third, it brings in customers interested in trying new menu items, keeping the menu fresh.

Anecdotally, the wraps seem to be receiving a favorable response, which is a good sign for both second-quarter results and the business’s long-term performance.

2. Same-store sales could turn positiveIn addition to the impact of wraps, there are other reasons to suspect that Sweetgreen could report positive comps, or at least something close to it.

The company is lapping the quarter in which it replaced its loyalty program, which led to some customer defections, so it’s facing easy comparisons with the quarter a year ago. Data from Placer.ai, a location intelligence company, showed that overall foot traffic rose 22.7% from the quarter a year ago, though that includes the impact of new stores.

Additionally, Chipotle reported its fastest comparable sales growth rate in six quarters in the second quarter, posting 2.2% same-store sales growth, a trend that could bode well for other fast-casual operators like Sweetgreen.

Finally, the company guided to a same-store sales decline of 2%-4% for the full year, implying that comparable sales are expected to be roughly flat after a 12.8% decline in the first quarter, so Q2 could be positive if results are better than expected.

3. The stock looks oversoldAfter falling nearly 90%, the stock seems to be priced as if the business is headed for extinction. In addition to the sell-off, 22% of the float is short, which could trigger a short squeeze and send the stock soaring if it delivers a strong quarter.

On a price-to-sales basis, the stock trades at a ratio just above 1, which looks like a great price for a company with Sweegreen’s growth potential.

Though its comparable sales have fallen sharply, the company still has average restaurant sales of $2.5 million, not far behind Chipotle, and it’s opening new stores. Sweetgreen is unprofitable, but if it can return to comparable sales growth in the coming quarter, that could change. Over the next few years, the stock could move a lot higher from its current price if the business returns to health.

It's an understatement to say Sweetgreen (SG +2.83%) has stumbled recently.

The fast-casual salad chain has plunged since it peaked in late 2024, down 86%. Almost everything that could go wrong for the salad slinger has.

Same-store sales have turned sharply negative as concerns about high food prices, a change to its loyalty program, and persistent inflation have all weighed on results. Additionally, the company surprised investors when it sold Spyce, the business containing the Infinite Kitchen, though it retained the right to use that technology, which helps automate food prep.

Showing how bad things have gotten for Sweetgreen, same-store sales fell 12.8% in the first quarter, and revenue was down 2.9% to $161.5 million, as the company continues to open new stores.

However, even as the stock has languished, there are signs that it could be turning the corner.

Image source: Sweetgreen.

Why Sweetgreen could be poised for a comeback Earlier this year, Sweetgreen introduced wraps as a lower-priced option to push back on complaints that its menu had gotten too expensive and to give customers a handheld option. The move rounds out its menu and, with bowls and wraps, gives it a similar offering to Chipotle and Cava, two top fast-casual chains.

According to some anecdotal observations and third-party data, the wraps appear to be driving a comeback. Placer.ai, a location intelligence platform that estimates foot traffic for national restaurants and retailers, found that Sweetgreen's same-store traffic turned positive in the second quarter after falling in every month since at least last July. Following an 8.4% decline in March, according to Placer, same-store visits were down 2.9% in April, then up 1% in May, and 3.9% in June.

Placer's data for the first quarter seemed to underestimate the decline in traffic, which was down 11.2%, so investors should take the numbers with a grain of salt, but the trend is clear. Store traffic dramatically improved in the second quarter, and that clearly bodes well for the business.

In addition to the tailwind from the wraps, Sweetgreen is also lapping a change in its loyalty program that turned off some customers, so comparable sales should benefit as that headwind rolls off.

Today's Change

(

2.83

%) $

0.17

Current Price

$

6.17

Why Sweetgreen could pop next month Sweetgreen is priced like a broken stock, but it still has promising growth ahead, and the last few quarters could prove to be a temporary setback. The stock trades at a price-to-sales ratio of just 1, and though it's not currently profitable, profits shouldn't be far away if it can get back to steady comparable sales growth. Sweetgreen's guidance calls for just that, and the Placer.ai data shows the company appears to be ahead of the curve.

If it can deliver positive comps in its second-quarter report on Aug. 6, or just report that it exited the quarter with positive comps, the stock could rip higher. After all, this is still a popular chain, with average sales per restaurant still exceeding $2.5 million.

Jeremy Bowman has positions in Cava Group, Chipotle Mexican Grill, and Sweetgreen. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Mr. Market didn't have much of an appetite for Sweetgreen (SG -0.66%) stock over the past few days. The salad-focused healthy cuisine restaurant chain operator fell out of favor due to increasingly stern warnings about the current outbreak of the cyclospora parasite, which has been linked to lettuce.

No cases have been reported at any Sweetgreen restaurant, but since it's a salad purveyor, investors were spooked anyway. According to data compiled by S&P Global Market Intelligence, the company's stock tumbled by almost 15% over the course of the trading week.

A widening outbreak The federal government's Centers for Disease Control and Prevention (CDC) issued its first Health Alert Network advisory last week. Since then, healthcare authorities have issued several updates indicating that cyclospora is spreading.

Image source: Getty Images.

The latest came on Friday, with the Food and Drug Administration (FDA) announcing that the outbreak, thought to originate in central Mexico, appears to have caused illnesses in nine states -- Illinois, Indiana, Kansas, Kentucky, Michigan, Ohio, Oklahoma, Pennsylvania, and West Virginia.

All told, based on findings from the CDC, the parasite has affected 1,947 people. Of these, 98 hospitalizations have been reported, although there have been no fatalities.

Today's Change

(

-0.66

%) $

-0.04

Current Price

$

6.00

Avoidance tactics While we're still some distance from a major, nationwide food healthcare emergency, the spread of cyclospora has been rapid, and caution is more than warranted. Diners will surely avoid restaurants like Sweetgreen, which in turn is going to affect the company's results. I think this stock has further to fall, so I'd avoid investing in it personally.

Sweetgreen (SG) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.

SINGAPORE, July 20, 2026 /PRNewswire/ -- YY Group Holding Limited (NASDAQ: YYGH) ("YY Group" or the "Company"), a Singapore-based company providing manpower services and integrated facility management ("IFM") services, today announced the appointment of Ng Yansheng as the Managing Director of YY Circle (SG) Pte. Ltd. ("YY Circle Singapore"), a wholly owned subsidiary of YY Group.

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.

No cases of cyclosporiasis have been tied to Sweetgreen, or any producers, for that matter.

Sweetgreen, Inc. (SG - Free Report) ended the recent trading session at $7.09, demonstrating a -14.27% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.9%.

Coming into today, shares of the company had lost 6.66% in the past month. In that same time, the Retail-Wholesale sector gained 0.77%, while the S&P 500 gained 1.27%.

Market participants will be closely following the financial results of Sweetgreen, Inc. in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be -$0.13, reflecting a 35% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $193.39 million, reflecting a 4.21% rise from the equivalent quarter last year.

SG's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $708.46 million. These results would represent year-over-year changes of +154.39% and +4.27%, respectively.

It is also important to note the recent changes to analyst estimates for Sweetgreen, Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sweetgreen, Inc. presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Sweetgreen, Inc. is presently trading at a Forward P/E ratio of 13.27. This expresses a discount compared to the average Forward P/E of 20.71 of its industry.

Investors should also note that SG has a PEG ratio of 1.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.97 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 23% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

In the latest close session, Sweetgreen, Inc. (SG - Free Report) was up +1.42% at $7.85. The stock outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 1.09%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Heading into today, shares of the company had lost 3.25% over the past month, lagging the Retail-Wholesale sector's gain of 0.18% and the S&P 500's gain of 1.64%.

Investors will be eagerly watching for the performance of Sweetgreen, Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.13, signifying a 35.00% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $193.39 million, indicating a 4.21% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $0.62 per share and a revenue of $708.46 million, demonstrating changes of +154.39% and +4.27%, respectively, from the preceding year.

Any recent changes to analyst estimates for Sweetgreen, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sweetgreen, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Sweetgreen, Inc. is presently trading at a Forward P/E ratio of 12.42. Its industry sports an average Forward P/E of 20.29, so one might conclude that Sweetgreen, Inc. is trading at a discount comparatively.

It's also important to note that SG currently trades at a PEG ratio of 1.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SG's industry had an average PEG ratio of 1.95 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Salad chain Sweetgreen (SG 0.56%) stock soared 30% in the first half of the year, according to data provided by S&P Global Market Intelligence. Investors see the potential for a turnaround, and they celebrated the company's well-received wraps rollout. However, the stock is already falling from the initial surge.

Can Sweetgreen win in fast casual? Sweetgreen competes in the fast-casual restaurant category, dominated by Chipotle Mexican Grill, with competition from other leaders like Cava Group. It's shown promise in its time on the market, and it's expanding steadily, but it has struggled to gain traction recently.

Image source: Sweetgreen.

There have been various problems, with a substantial number of stores not meeting company standards and its healthy, expensive line of salads falling out with its core clientele, especially as inflation continues to rage.

It may have hit rock bottom in the 2026 fiscal first quarter (ended March 29), with a 12.8% decrease in comparable sales (comps), on top of a 3.1% decline the previous year. Operating loss was $34.3 million, worse than $28.5 million last year.

It has tried numerous ways to get back on track. It released a fries product last year, only to shut it down six months later; it rolled out Infinite Kitchen stores, which use an automated service to dispense salad items, and then sold off the parent company; and most recently, it introduced wraps on its menu.

Is the only way now up? Curiously, Sweetgreen soared after the report, but the gain was likely connected to a different update; it introduced wraps to its menu at the same time, and the market has embraced this change as a way forward, including some from Wall Street analysts raising price targets.

There are a number of reasons wraps make sense for Sweetgreen, a salad company, ranging from their greater convenience to their lower price point. The only salad model may not have a large enough addressable market, and wraps add a whole new potential client base.

However, Sweetgreen still looks risky while it's piloting this new product. I would caution investors to wait to see how the rollout goes and for sustained momentum, as well as comps increases, before deciding that Sweetgreen stock is a buy. It's already 21% off its highs from May, when it announced the wraps, and the stock isn't even a bargain, trading at 63 times trailing 12-month earnings.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

A lot of people are buying Sweetgreen (SG +3.04%) shares these days. As of June 29, the fast-casual salad chain's stock has gained 90.4% from a deep trough near the end of March. Trading volumes are up in the past three months, short-seller interest is down, and the company's turnaround effort seems to be working.

That's Wall Street's conclusion at the moment, anyway. But I don't agree.

Today's Change

(

3.04

%) $

0.26

Current Price

$

8.81

The salad days are over You see, I think the wheels have come off Sweetgreen's expansion push, and they won't go back on.

The company was hot in 2024. Sales were soaring. Free cash flows were approaching the breakeven point, quarter by quarter. Two years ago, Sweetgreen's stock was up 144% on a 52-week basis.

But that was the peak. The company kept building restaurants, expanding the network from 225 locations in the middle of 2024 to 285 restaurants in Q1 2026. Meanwhile, cash reserves dwindled from $245 million to $157 million. And that includes a $161 million cash boost in Q1 2026 from the sale of Spyce, which developed the robotic Infinite Kitchen technology at the heart of Sweetgreen's expansion plans.

Image source: Getty Images.

Sweetgreen keeps swinging and missing Sweetgreen isn't out of ideas. The recently introduced wraps might spark consumer interest in this chain, and create-your-own bowls and salads could appeal to price-sensitive customers. And same-store sales have nowhere to go but up after cratering 12.8% year over year in Q1 2026.

However, Sweetgreen has tried new food items and operating models before, with downright disastrous results. Ripple fries went off the menu less than six months after their introduction in March 2025. I already mentioned the Spyce robotic food service idea, which alienated people more than it saved operating costs.

The wraps are on brand, and a slower expansion rate could work better. But ultimately, it's too easy to find similar menu items at lower prices from world-class competitors such as Cava (CAVA 4.14%) and Chipotle Mexican Grill (CMG +3.09%). In particular, Sweetgreen's wraps look like a tough sell next to Chipotle's popular burritos.

Let the crowd have this one. I'm not buying Sweetgreen stock until the turnaround gets some real traction.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

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