Sweetgreen: Modest Q4 Outperformance Offset by Weak 2026 Outlook and Soft Traffic, Justifying Hold Rating

In a report released yesterday, Andrew Charles from TD Cowen maintained a Hold rating on Sweetgreen, with a price target of $6.00.

Andrew Charles has given his Hold rating due to a combination of factors tied to Sweetgreen’s recent performance and outlook. While fourth-quarter results modestly outperformed expectations on same-store sales declines and restaurant-level margins, these positives were offset by management’s 2026 guidance, which came in meaningfully below both his and the Street’s prior forecasts, suggesting limited near-term upside.

Sales trends early in 2026 remain notably weak, with negative low double-digit comparable sales and additional pressure from difficult year-over-year comparisons and weather-related disruptions. Although the planned system-wide launch of wraps later in the year represents a potential catalyst, Charles views this as insufficient, at this stage, to outweigh the current traffic softness and reduced same-store sales and EBITDA expectations, leading him to maintain a neutral, Hold stance on the shares.

In another report released on February 23, UBS also maintained a Hold rating on the stock with a $6.50 price target.