Sweetgreen Q3 EPS Misses by $0.13, Analysts Set $11.43 Target
Sweetgreen posted Q3 EPS of -$0.31 (missed by $0.13) on $172.4M revenue (vs $179.3M expected), widening its net margin to -16.55%. Sixteen analysts rate the stock “Hold” (2 sell, 11 hold, 3 buy) with an average 12-month target price of $11.43.
1. Consensus Rating Reflects Analyst Caution
Sixteen brokerages covering Sweetgreen have issued a consensus recommendation of Hold. Among these, two analysts advise a Sell position, eleven remain neutral, and three recommend Buy. The average one-year target price across recent analyst updates stands at $11.43, indicating moderate upside from current levels.
2. Insider Purchases Signal Executive Confidence
Co-founders Nicolas Jammet and Jonathan Neman both executed share purchases on November 12th, acquiring 18,115 and 179,800 shares respectively in transactions valued at approximately $100,000 and $1,000,000. Following these transactions, insiders collectively own 19.78% of outstanding shares, underscoring management’s long-term commitment to the company’s growth trajectory.
3. Institutional Investors Adjust Stakes
Recent filings show a diverse set of institutions building positions in Sweetgreen. Glass Jacobson added a new stake worth $30,000 in Q2, while Nisa Investment Advisors nearly doubled its holdings to 2,129 shares. Skandinaviska Enskilda Banken boosted its stake by over 300% to 2,808 shares, and Larson Financial Group and Bogart Wealth increased theirs to 3,766 and 5,000 shares respectively. Institutional ownership now represents 95.75% of the float.
4. Latest Quarterly Results Highlight Profitability Challenges
In its most recent quarter, Sweetgreen reported revenue of $172.4 million, falling short of analyst forecasts by roughly $7 million and marking a slight year-over-year decline. The company posted a net loss of $0.31 per share versus an expected loss of $0.18, translating to a negative net margin of 16.6% and a return on equity of –25.7%. Consensus estimates project a full-year loss per share of approximately $0.74.