Sweetgreen PT Cut to $7 as Q4 Same-Store Sales Slide 11.5%
RBC cut Sweetgreen’s price target to $7 from $8 after forecasting FY26 same-store sales to slide 2–4%, 320 basis points below consensus. In Q4, same-store sales fell 11.5% driving revenue to $155.2 million and a net loss of $49.7 million, while full-year revenue reached $679.5 million with net losses of $134.1 million.
1. Price Target Revision and Outlook
RBC maintained an Outperform rating but cut its price target from $8 to $7 and projects FY26 same-store sales to decline 2–4%, 320 basis points below analyst consensus. Management anticipates a considerable acceleration in performance later in the year as traction improves.
2. Q4 Financial Performance
In the fourth quarter, same-store sales dropped 11.5%, leading to a 3.5% revenue decline to $155.2 million. Digital channels accounted for 38% of revenue with digital sales at 65.1%, restaurant-level profit was $16.2 million, operating loss totaled $48.1 million, adjusted EBITDA was negative $13.3 million, and net loss reached $49.7 million.
3. Full-Year 2025 Results
For the full year, revenue modestly increased to $679.5 million but net losses widened to $134.1 million, and adjusted EBITDA remained negative at $11.0 million, reflecting ongoing investment in growth and challenges in driving traffic.