Sweetgreen's Q3 revenue rises, beats estimates 

Overview

• U.S. fast-casual chain's fiscal Q3 revenue rose over 2%, beating analyst expectations

• Adjusted EBITDA loss for fiscal Q3 beat consensus

• Revenue growth driven by new restaurant openings, offset by lower comparable sales after food safety issue

Outlook

• Sweetgreen updates 2026 outlook: about 10 Net New Restaurant Openings, half with Infinite Kitchen

• Company expects 2026 Same-Store Sales Change of about (5.5)%

• Sweetgreen sees 2026 Restaurant-Level Profit Margin at 11.0% to 11.5% and Adjusted EBITDA between $(23.0) mln to $(20.0) mln

Result Drivers

• NEW RESTAURANT OPENINGS - Revenue growth was primarily due to incremental sales from 30 net new restaurant openings during or after Q3 2025

• FOOD SAFETY ISSUE - Co said lower comparable sales reflected reduced consumer demand from cyclosporiasis outbreak

• MENU MIX SHIFT - Co said decrease in product mix was due to shift towards wraps

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Sweetgreen, Inc. is $10.00, about 15.3% below its November 4 closing price of $11.80

Reuters Recommended Reads

• Nov 3 - Yum says Taco Bell rebounding after cyclosporiasis outbreak hit Q3 sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)