Sweetgreen (SG): Evaluating Valuation After Q3 2025 Miss, Lower Guidance, and Strategic Shifts

Sweetgreen (SG) released its third quarter 2025 results, revealing a larger net loss and quarterly revenue that fell short of expectations. Same-store sales declined sharply, which contributed to management lowering full-year revenue guidance.

See our latest analysis for Sweetgreen.

Shares of Sweetgreen have struggled to regain momentum after a tough year, with the latest share price down to $5.78 and a one-year total shareholder return of -85.4%. Recent events such as the discontinuation of Sweetpass+, weaker sales, and the sale of its robotics unit all reflect management’s shift toward stabilizing the business. However, investors remain cautious amid mounting losses and fading growth expectations.

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With shares trading well below analyst price targets and growth forecasts now reset, investors are left to wonder whether Sweetgreen is undervalued after its dramatic decline or if the market is correctly anticipating further challenges ahead.

Most Popular Narrative: 49.6% Undervalued

Sweetgreen’s current narrative fair value estimate stands at $11.46, nearly double its last close price of $5.78. With this much divergence, the story driving such a high target demands closer inspection.

The rollout and rapid expansion of the Infinite Kitchen automated stores are driving material improvements in labor efficiency, consistency, and customer satisfaction. This is expected to enhance net margins and support higher unit economics over time as more locations adopt this model.

Read the complete narrative.

Can those operational upgrades really propel this much upside? The narrative hinges on ambitious expansion plans and a bet on new tech dramatically boosting long-term margins. Find out which numbers underpin this bold projection and what optimistic analysts are banking on to make it real.

Result: Fair Value of $11.46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent same-store sales declines or failed execution at new store formats could quickly undermine Sweetgreen’s ambitious growth and margin recovery plans.

Find out about the key risks to this Sweetgreen narrative.

Another View: A Multiples-Based Perspective

Looking beyond narrative and fair value estimates, Sweetgreen’s price-to-sales ratio is 1x. This is cheaper than the US Hospitality industry average of 1.7x, but in line with its peer group and still above the stock’s fair ratio of 0.8x. The market could move toward this level over time if sentiment worsens or growth stalls. Multiples suggest there is less margin for error than it seems. Will investors favor these relative bargains or does risk remain?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Sweetgreen Narrative

If you want to dig deeper or think the story unfolds differently, you can put together your own narrative for Sweetgreen in a matter of minutes, then Do it your way

A great starting point for your Sweetgreen research is our analysis highlighting 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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