Sweetgreen initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Sweetgreen (SG) with an Overweight rating and $19 price target The firm says that despite the company’s current challenges, it likes the second half of 2025 setup for the shares. Wells believes Sweetgreen’s headwinds will pass, comps are improving and its focus will return to a multi-year fundamental improvement story driven by Infinite Kitchens, faster throughput and better operations. The company’s “checks all the right boxes in restaurants” with a strong brand, high-teens unit growth, 40%-plus cash-on-cash returns, and is on the right side of health and wellness, the analyst tells investors in a research note.