Sweetgreen downgraded to Market Perform from Outperform at William Blair

William Blair analyst Sharon Zackfia downgraded Sweetgreen (SG) to Market Perform from Outperform without a price target following the Q3 report. The firm sees limited visibility on the timing of the company’s turnaround. Sweetgreen’s Q3 missed expectations with adjusted EBITDA reverting into losses, as comps worsened sequentially on a one- and two-year basis for the third straight quarter, the analyst tells investors in a research note. William Blair believes “investor skepticism will reign supreme” despite the stock’s low valuation pending an inflection back into sustainably positive comps.