timothy sykes logo

Stock News

Sweetgreen Cuts Financial Outlook Amid Rising Challenges

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 11/7/2025, 4:46 pm ET 11/7/2025, 4:46 pm ET | 5 min 5 min read
Sweetgreen Cuts Financial Outlook Amid Rising Challenges Thumbnail

Sweetgreen Inc. faces increased market pressure as stocks have been trading down by -7.36 percent amid competitive challenges.

Consumer Discretionary industry expert:

Analyst sentiment – negative

  1. Market Position & Fundamentals: Sweetgreen (SG) is currently struggling with negative profitability ratios, evidenced by an EBIT margin of -14.5%, an EBITDA margin of -1.7%, and a pre-tax profit margin of -26.3%. Despite a gross margin of 18.6%, ROE and ROA are deeply negative at -33.17% and -20.23%, respectively, indicating inefficiencies in capital utilization. The balance sheet reflects a moderate debt load, with a total debt-to-equity ratio of 0.8. However, the company’s negative free cash flow (-$14.9M) coupled with cash outflows points to continued operational challenges.

  2. Technical Analysis & Trading Strategy: Sweetgreen’s stock exhibits a downward trend over the analyzed weeks, suggesting bearish sentiment. After reaching a high of $6.54, the stock declined to close at $5.77. The candlestick patterns show selling pressure at higher prices, with volume spikes around the low price levels indicating potential support. The dominant trend is bearish, with support around $5.03, the recent week low. A conservative trading strategy is awaiting a break below $5.50 to short, targeting $5.03. Tight stop-loss above $5.80 ensures risk management.

  3. Catalysts & Outlook: Recent coverage by Barclays and revised financial guidance underscore Sweetgreen’s deteriorating outlook. The FY25 revenue forecast was reduced to $682M-$688M, and same-store sales are expected to decline by 7.7%-8.5%. This performance lags behind Consumer Discretionary and Restaurants & Bars sectors, which present more resilient metrics amid economic headwinds. Sweetgreen’s lowered guidance accentuates pressures on growth and profitability. Resistance is likely at $6.52, with limited upside potential. Given these dynamics, the outlook for Sweetgreen remains negative.

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 is grappling with significant financial hurdles, evidenced by a string of downgrades and revision to guidance numbers. Its recent earnings revealed revenue at $676.83M, with operating margins at negative levels across various metrics, such as an EBIT margin of -14.5% and gross margin at 18.6%. These figures clearly underline the profitability issues the chain is facing. The latest price data paints a turbulent picture as shares slipped during the initial weeks of November, descending from $6.49 on November 3, to a lower close of $5.77 by the 7th, signaling turbulent investor sentiment amid back-to-back downgrades and profit warnings.

More Breaking News

The financial strain is further amplified through its balance sheet, showing a total liability of $408.59M against total equity of $423.30M. Sweetgreen’s long-term debt ratio stands precariously at 0.8, imposing additional pressure on asset leverage and equity optimization. The current ratio of 1.8 offers a slight cushion, albeit overshadowed by the broader structural and fiscal challenges posed by its operating model and external economic factors.

Conclusion

Sweetgreen’s journey ahead appears fraught with complexities, encompassing immediate operational headwinds and broader industry recalibrations. The downgrades and revenue cuts demonstrate vulnerabilities that require not only tactical pricing realignments but also expanded focus on growth-driving initiatives that can rejuvenate its brand and market presence. As millionaire penny stock trader and teacher Tim Sykes, says, “You must adapt to the market; the market will not adapt to you.” With this trading mindset, Sweetgreen must recognize the criticality of adapting swiftly to shifting market dynamics. With tangible trader apprehension and wavering market confidence, achieving these objectives will be critical in reversing its current setback trajectory and reclaiming a robust financial footing.

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.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
Read More

* 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 .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

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”