Sweetgreen (NYSE:SG) Misses Q3 Revenue Estimates, Stock Drops

Casual crockery concatenation Sweetgreen (NYSE:SG) missed Wall Street’s gross expectations successful Q3 CY2025, with income level twelvemonth connected twelvemonth astatine $172.4 million. The company’s full-year gross guidance of $685 cardinal astatine the midpoint came successful 2.5% beneath analysts’ estimates. Its GAAP nonaccomplishment of $0.31 per stock was 76.2% beneath analysts’ statement estimates.

Is present the clip to bargain Sweetgreen? Find retired successful our afloat probe report.

• Revenue: $172.4 cardinal vs expert estimates of $177.9 cardinal (flat twelvemonth connected year, 3.1% miss)

• EPS (GAAP): -$0.31 vs expert expectations of -$0.18 (76.2% miss)

• Adjusted EBITDA: -$4.36 cardinal vs expert estimates of $3.99 cardinal (-2.5% margin, important miss)

• The institution dropped its gross guidance for the afloat year to $685 cardinal astatine the midpoint from $707.5 million, a 3.2% decrease

• EBITDA guidance for the afloat year is -$11.5 cardinal astatine the midpoint, beneath expert estimates of $10.65 million

• Operating Margin: -21%, down from -12.2% successful the aforesaid 4th past year

• Same-Store Sales fell 9.5% twelvemonth connected twelvemonth (6% successful the aforesaid 4th past year)

• Market Capitalization: $764.8 million

Founded successful 2007 by 3 Georgetown University alum, Sweetgreen (NYSE:SG) is simply a casual speedy work concatenation known for its steadfast salads and bowls.

A company’s semipermanent show is an indicator of its wide quality. Any concern tin acquisition short-term success, but top-performing ones bask sustained maturation for years.

With $685.2 cardinal successful gross implicit the past 12 months, Sweetgreen is simply a tiny edifice chain, which sometimes brings disadvantages compared to larger competitors benefiting from amended marque consciousness and economies of scale. On the agleam side, it tin turn faster due to the fact that it has much achromatic abstraction to physique caller restaurants.

As you tin spot below, Sweetgreen’s income grew astatine an fantabulous 17% compounded yearly maturation complaint implicit the past six years (we comparison to 2019 to normalize for COVID-19 impacts) arsenic it opened caller restaurants and accrued income astatine existing, established eating locations.

This quarter, Sweetgreen missed Wall Street’s estimates and reported a alternatively uninspiring 0.6% year-on-year gross decline, generating $172.4 cardinal of revenue.

Looking ahead, sell-side analysts expect gross to turn 16% implicit the adjacent 12 months, akin to its six-year rate. Despite the slowdown, this projection is commendable and indicates the marketplace sees occurrence for its paper offerings.

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