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RBC Cuts Sweetgreen Price Target as 2026 Sales Outlook Trails Consensus

The move follows a year marked by traffic-driven comp declines with continuing losses at the salad chain.

Overview

  • RBC Capital kept an Outperform rating on Sweetgreen but lowered its price target to $7 from $8 after reviewing recent trends.
  • RBC now models 2026 same-store sales down 2% to 4%, about 320 basis points below consensus, while noting management expects improvement later in the year.
  • Sweetgreen reported 2025 revenue of $679.5 million with a net loss of $134.1 million and a negative $11.0 million adjusted EBITDA.
  • Fourth-quarter same-store sales fell 11.5% as traffic weakened and the shift from Sweetpass+ to SG Rewards pressured results, with quarterly revenue down 3.5% to $155.2 million.
  • Shares have dropped about 73% over the past 12 months as of March 5, with the stock trading near a 1x price-to-sales multiple.