Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Goldman Sachs has lowered its price target on Sweetgreen Inc (NYSE:SG) to $11.00 from $15.00 while maintaining a Neutral rating following the company’s second-quarter earnings report. The stock, which has declined over 50% in the past year according to InvestingPro data, currently trades near its 52-week low of $11.84.
The salad chain reported both top and bottom-line misses for Q2 2025, with revenue falling 5.0% below Goldman Sachs estimates and 3.3% below consensus expectations. Adjusted EBITDA came in at $6.4 million, significantly below analyst projections of $11.0-11.9 million. While the company maintains a healthy current ratio of 1.97 and operates with moderate debt levels, its trailing twelve-month EBITDA stands at -$35.3 million.
Sweetgreen has revised its full-year 2025 guidance downward across most metrics, maintaining only its unit development targets. The company cited external headwinds and specific challenges including tough year-over-year comparisons due to last year’s steak launch and transition costs to a new brand loyalty program.
Goldman Sachs acknowledged Sweetgreen’s strategy to enhance guest experience through investments in staff, throughput, and food quality, but indicated it needs to see evidence of successful execution before gaining confidence in a top-line recovery.
The investment bank’s revised 12-month price target of $11 reflects these concerns while maintaining its Neutral stance on the stock. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, with analyst targets ranging from $12 to $29. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into Sweetgreen’s financial health and growth prospects.
In other recent news, Sweetgreen reported its second-quarter financial results, revealing stagnant revenue growth and a disappointing outlook for the rest of the year. The company posted revenue of $185.6 million, marking only a 0.5% increase compared to the same period last year. This figure fell short of analyst expectations, which had projected revenue of $193.43 million. Additionally, Sweetgreen’s adjusted earnings per share were reported at -$0.20, significantly missing the anticipated -$0.09. The company has also revised its full-year guidance downward, citing declining customer traffic as a contributing factor. These developments have raised concerns among investors about the company’s growth trajectory. While the company did not meet earnings expectations, the recent news highlights the challenges Sweetgreen faces in the current market environment. Analyst firms have yet to issue any upgrades or downgrades following the earnings report.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.