Sweetgreen: A Salad’s Slow Wilt

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The chronicles tell us that shares of Sweetgreen (SG +0.16%) have been experiencing a downturn, a sort of slow wilt under the harsh glare of the market sun. It’s a tale as old as time, or at least as old as publicly traded salad establishments. A general retreat from ventures promising future riches, combined with a pronouncement from the esteemed Oracle of Goldman Sachs – a house known for its reliably gloomy forecasts1 – has left Sweetgreen looking a bit…droopy.

Even the news from Starbucks, a purveyor of caffeinated beverages and a surprisingly robust indicator of societal well-being, couldn’t offer a restorative draught. As of late afternoon, Sweetgreen had shed 15.1% of its value, a loss that could fund a small principality, or at least a very nice compost heap. The data, gleaned from the scribes at S&P Global Market Intelligence, is rarely cheerful, but this week it was particularly glum.

Sweetgreen Slides, Again

There was no grand pronouncement, no goblin attack, no sudden influx of suspiciously cheap lettuce. Just a general…feeling. The stock, it seems, has been swaying with the prevailing winds since the unfortunate revelations following its third-quarter earnings report. A bit like a ship with a slightly leaky hull, if you will.

Goldman Sachs, in a gesture of either profound insight or exquisite cruelty, reaffirmed its “sell” rating, though generously raised its price target from a paltry $5 to a slightly less paltry $5.60. Analyst Christine Cho noted that restaurants, generally, have been doing rather well, outperforming even the venerable S&P 500, and that a boost in household spending – fueled by stimulus and tax cuts – might be on the horizon. Though, she added, much of the industry is still grappling with the logistical nightmare of getting enough avocados.2

Starbucks reported a 4% increase in comparable sales in the U.S., a sign that people are still willing to part with their coins for a bit of bean-based enthusiasm. This may be due to the tireless efforts of CEO Brian Niccol, who has been quietly reshaping the business like a potter with a particularly demanding clay.

To add insult to injury, the tech sector and other ventures promising future riches faltered at the week’s end, further compounding Sweetgreen’s woes. It’s a harsh lesson, really: even the most carefully cultivated salad can be trampled underfoot by the stampede of ambition.

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Can Sweetgreen Bounce Back?

Sweetgreen possesses a certain potential, being the leading purveyor of fast-casual salads. However, it also finds itself in something of a penalty box, having endured a rather dreadful 2025. Plunging same-store sales and the dismantling of the “Infinite Kitchen” automation platform – though they retained the rights to use it, naturally3 – have left their mark.

The good news is that 2026 promises easier comparisons. However, the stock remains a “show-me” story, especially after the recent departures of co-founder and Chief Brand Officer Nathaniel Ru, CFO Mitch Reback, and Chief Development Officer Chris Tarrant. It’s a bit like losing the captain, the navigator, and the ship’s cook all at once. We await further enlightenment when they report fourth-quarter earnings at the end of February.

1 Goldman Sachs is rumored to employ a team of highly-trained pessimists whose sole purpose is to identify everything that could possibly go wrong. They are surprisingly accurate.
2 The avocado shortage is a recurring crisis, often attributed to a complex conspiracy involving rogue farmers, sentient guacamole, and the fluctuating price of toast.
3 Retaining the rights to use something is often more valuable than owning it outright, a principle known as “The Alchemist’s Paradox.” It involves a lot of complicated paperwork and a healthy dose of magical thinking.

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2026-01-30 22:43