Sweetgreen’s Stock Plunge May Present a Long-Term Opportunity

Sweetgreen (SG -0.17%) has faced a brutal 2025, with shares plummeting 72% year-to-date amid declining comparable-store sales and widening losses. High menu prices appear to be alienating customers, compounding the challenges for the fast-casual salad chain.

Despite three consecutive disappointing earnings reports, some analysts see a potential tenfold rebound. The company's current $1 billion market cap pales in comparison to its previous $5 billion valuation and peers like $10.7 billion and $7.6 billion restaurant chains.

Short-term headwinds—including tough 2024 comparisons and California wildfire disruptions—may obscure Sweetgreen's long-term growth trajectory. Second-quarter comparable sales dropped 7.6%, but this followed a 9.3% surge in the prior-year period.