Sweetgreen’s third quarter results were met with a significant negative market reaction, as the company’s revenue and profit fell short of Wall Street expectations. Management attributed the performance to soft sales trends in key Northeast and Los Angeles markets and lighter spending among younger guests, especially those aged 25 to 35. CEO Jonathan Neman noted, “Performance was impacted by softer sales trends in our Northeast and Los Angeles markets, which together represent about 60% of our comp base.” The leadership team acknowledged that operational execution and guest engagement remain areas needing improvement as the company navigates a challenging consumer environment.

Is now the time to buy SG? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Sweetgreen’s Q3 Earnings Call

• Brian Mullan (Piper Sandler) asked about the scope and difficulty of the menu and pricing review. CEO Jonathan Neman explained that new entry price points and clearer value messaging are being tested, with an emphasis on balancing value and operational feasibility.

• Jon Tower (Citi) questioned the rationale behind guidance for a further step down in Q4 sales and the impact of the Infinite Kitchen agreement. CFO Jamie McConnell detailed that sales trends worsened in August and September, especially among younger consumers and in core markets, while Neman emphasized the cost and focus benefits of the Wonder partnership.

• Andrew Charles (TD Cowen) inquired about potential closures and the readiness of the handheld product for market testing. McConnell confirmed two closures are planned, while Neman described operational testing and a cautious rollout for the new product.

• Rahul Krotthapalli (JPMorgan) sought clarity on the net cash proceeds from the Spyce sale and its impact on Infinite Kitchen deployment. McConnell noted tax implications are minimal, and Neman highlighted cost savings and access to innovation from the Wonder agreement.

• Sara Senatore (Bank of America) probed the decision to sell Spyce and the effect on daypart performance. Neman stated the sale lets Sweetgreen focus on its core business while maintaining technology access, and McConnell clarified that dinner traffic, not lunch, is seeing the most softness.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will focus on (1) progress in stabilizing same-store sales and traffic in key markets, (2) evidence that new menu items and pricing strategies are attracting and retaining customers, and (3) measurable benefits from operational initiatives and the Infinite Kitchen partnership with Wonder. Monitoring the effectiveness of the loyalty program and improvements in restaurant-level margins will also be essential.

Sweetgreen currently trades at $5.71, down from $6.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.