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Sweetgreen’s Revenue Cut Raises Investor Concerns; Price Target Lowered

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 11/7/2025, 4:10 pm ET 11/7/2025, 4:10 pm ET | 5 min 5 min read
Sweetgreen’s Revenue Cut Raises Investor Concerns; Price Target Lowered Thumbnail

Sweetgreen Inc.’s stocks have been trading down by -7.36 percent amid concerns over market volatility and competitive pressures.

Consumer Discretionary industry expert:

Analyst sentiment – negative

Sweetgreen (SG) is currently in a challenging market position demonstrated by negative profitability indicators such as an EBIT margin of -14.5% and a gross margin of 18.6%. Revenue stands at $676.8 million, but the firm’s significant debt load is evident with a total debt-to-equity ratio of 0.8, impacting financial stability. The return on equity is negative at -33.17%, indicating inefficiency in generating shareholder value. The company’s negative free cash flow of -$14.9 million further underscores difficulties in operational cash generation and cash conservation, casting doubts on its near-term stability and growth potential.

Technically, Sweetgreen’s weekly chart illustrates a clear downtrend. A sharp price drop from $6.41 (251103) to a closing low of $5.78 (251107), along with declining volume, indicates weak investor sentiment. The significant bearish candle during the week of 251106, with high to low ranging from $6.4 to $5.03, and closing at $5.5003, suggests strong resistance around $6.50 and support near $5.03-$5.50. A breakout below $5.78 could signal further downside. Traders should consider short positions if the price breaks below $5.50 with substantial volume, setting a target at $5.03 with an appropriate stop-loss above $6.

Recent news further pressures Sweetgreen’s outlook, with Barclays analyst Bernstein lowering the price target to $8, reflecting dimming prospects. Additionally, the company has revised its FY25 revenue guidance downward to $682M-$688M from $700M-$715M and same-store sales projections to decrease by 7.7%-8.5%. In comparison to broader Consumer Discretionary and Restaurants & Bars sectors, which have shown resilience, Sweetgreen is underperforming, primarily influenced by adverse inflation and pricing strategies. The company faces formidable resistance at $8, with downside risk towards $5 if bearish trends continue unabated. Overall, the broader market factors combined with internal inefficiencies suggest significant headwinds and a cautious outlook for Sweetgreen.

  • Forecasts for Sweetgreen’s FY25 revenue have been cut to between $682M and $688M, a noticeable decrease from prior estimates, strongly influencing market sentiment.

  • Same-store sales predictions for FY25 have been revised lower, with expectations of a decline between 7.7% to 8.5%, highlighting concerns over the company’s sales strategies.

Candlestick Chart

Weekly Update Nov 03 – Nov 07, 2025: On Friday, November 07, 2025 Sweetgreen Inc. stock [NYSE: SG] is trending down by -7.36%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Sweetgreen’s financial metrics underscore a challenging trajectory. The company’s profitability ratios reveal concerning figures: an EBIT margin of -14.5%, a gross margin of 18.6%, and a net profit margin standing at -14.29%. These figures reflect the challenges Sweetgreen is currently navigating. Coupled with the cost pressures highlighted by inflation, these metrics iterate a demanding financial environment for the company. In terms of liquidity, Sweetgreen maintains a current ratio of 1.8, which depicts its ability to meet short-term liabilities but offers little room for complacency.

More Breaking News

The recent reduction in revenue estimates places further strain on Sweetgreen’s market position. With FY25 revenue trimmed to $682M-$688M, this underscores a tightening fiscal outlook and challenges in bringing about significant sales growth. The operational expense structure remains burdensome, affecting the bottom line, as indicated by a negative operating income of -$26M as per recent reports.

Conclusion

Sweetgreen stands at a critical juncture in its strategic path forward. The marked adjustment in financial projections coupled with the tempered market response encapsulates the wider challenges within the fast-casual dining landscape. Inflationary pressures are exerting significant influence, affecting price strategies and customer footfall. While Sweetgreen’s leadership emphasizes its long-term growth strategy, immediate trader sentiment reflects cautious curiosity over how the company can pivot effectively against rising costs and competition. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This underscores the importance of Sweetgreen maintaining a strong financial backbone while navigating the current economic pressures.

In conclusion, navigating the coming quarters will necessitate a balanced approach — driving innovation in customer experiences while streamlining operations to fend off financial erosion. Stakeholders will remain watchful of how Sweetgreen recalibrates its strategies in response to this evolving market tableau. The current fiscal adjustments reflect pragmatic caution, crucial in preserving stakeholder value amidst this economic climate.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”