Sweetgreen, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Charles from TD Cowen maintained a Hold rating on the stock and has a $6.00 price target.
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Andrew Charles has given his Hold rating due to a combination of factors impacting Sweetgreen’s financial outlook. The company’s recent financial performance showed a significant miss in adjusted EBITDA for the third quarter, primarily driven by a decline in same-store sales and unfavorable cost metrics. This underperformance was particularly noticeable in key regions such as the Northeast and Los Angeles, affecting younger consumers and dinner sales.
Furthermore, Sweetgreen’s revised guidance for 2025 indicates a more challenging sales environment, with lower expected comparable sales growth and a reduced number of net openings planned for 2026. The company is attempting to address these issues through operational improvements, menu innovation, and pricing strategies. However, the current financial challenges and strategic adjustments suggest a cautious approach, supporting the Hold rating as the company navigates these headwinds.
In another report released on October 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.00 price target.