Cautious Hold Rating on Sweetgreen Amidst SSS Concerns and Market Challenges

Sweetgreen (SG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Andrew Charles from TD Cowen downgraded the rating on the stock to a Hold and gave it a $15.00 price target.

Andrew Charles has given his Hold rating due to a combination of factors affecting Sweetgreen’s current and future performance. One of the primary concerns is the company’s same-store sales (SSS) performance, which has been underwhelming since the second quarter of 2025. There is skepticism about the optimistic projections for the latter half of 2025 and the potential for returning to normalized SSS by 2026. This skepticism is compounded by the need for significant improvements in seasonal sales and macroeconomic conditions to meet the company’s guidance, which Charles views as overly optimistic.
Additionally, while the Infinite Kitchens initiative shows promise for long-term growth, Charles believes that the company will not receive recognition for this innovation until there is an improvement in SSS. The potential for reinvestment of margin savings into lower pricing and the reflection of these benefits in consensus estimates further temper enthusiasm. Furthermore, the challenges faced in urban markets, combined with intensified competition and stagnant return-to-office trends, place additional pressure on Sweetgreen’s growth prospects, necessitating a cautious approach with a Hold rating.

In another report released on June 25, J.P. Morgan also maintained a Hold rating on the stock with a $16.00 price target.

Based on the recent corporate insider activity of 113 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SG in relation to earlier this year.