What Happened?
Shares of casual salad chain Sweetgreen (NYSE:SG) jumped 4.2% in the afternoon session after the company announced its expansion into the Sacramento market with the launch of two new locations.
This move marked the company's first entry into the area and built upon its ongoing expansion across the country. The news signaled continued growth for the restaurant chain. Adding to the positive sentiment, RBC Capital analyst Logan Reich reiterated a "Buy" rating on the stock with an $8 price target, reinforcing a favorable outlook on the company's prospects.
The shares closed the day at $7.03, up 5.5% from previous close.
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What Is The Market Telling Us
Sweetgreen’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 3.9% on the news that RBC Capital raised its price target on the stock, and the company launched a new value-focused promotional meal. The investment bank increased its price target to $8 from $7 while keeping an Outperform rating on the shares. This analyst action coincided with the company's introduction of the 'Tis the Seasoned Harvest Bowl with Blackened Chicken. The meal was offered nationwide for a limited time at a price of $10 for members of its loyalty program. This was seen as one of the chain's strongest value plays yet to attract customers.
Sweetgreen is down 78.4% since the beginning of the year, and at $6.94 per share, it is trading 80.2% below its 52-week high of $34.94 from January 2025. Investors who bought $1,000 worth of Sweetgreen’s shares at the IPO in November 2021 would now be looking at an investment worth $140.10.
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