Sweetgreen’s Strategic Initiatives and Market Shift Drive Buy Rating Amid Challenging Environment

TD Cowen analyst Andrew Charles maintained a Buy rating on Sweetgreen (SG – Research Report) today and set a price target of $25.00.

Andrew Charles has given his Buy rating due to a combination of factors influencing Sweetgreen’s performance. The company is navigating a challenging macroeconomic environment while launching various sales initiatives that are expected to enhance sales progressively. Notably, the Infinite Kitchen project is progressing well, especially after the reduction in the China tariff rate, which has significantly lowered expected costs.
Moreover, Sweetgreen’s revamped loyalty program has shown promising results, with more sign-ups in the first two weeks than the previous program. This initiative, alongside strategic collaborations and the return of seasonal menus, is anticipated to contribute positively to sales. Additionally, the company is shifting focus from urban centers to suburban markets, where performance has been stronger, further supporting the Buy rating.

According to TipRanks, Charles is a 5-star analyst with an average return of 10.3% and a 56.32% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as Jack In The Box, Yum! Brands, and Shake Shack.

In another report released on May 9, Oppenheimer also maintained a Buy rating on the stock with a $29.00 price target.