Sweetgreen shares erase Cyclospora slump as Wells Fargo upgrades

Investing.com -- Sweetgreen Inc (NYSE: SG) shares climbed on Monday after Wells Fargo & Co. upgraded the fast-casual salad chain, pointing to a faster-than-expected operational recovery following a summer parasite outbreak that temporarily depressed customer traffic. Analyst Anthony Trainor raised his rating on the stock to Overweight from Equal Weight and set an $11 price target, sending the stock up as much as 2.3% in trading.

The upgrade follows an improved operational backdrop after six quarters dominated by demand headwinds and execution missteps. Trainor noted that executive leadership delivered a notably more constructive outlook during a recent investor conference, reflecting key operational adjustments implemented to restore consumer confidence and stabilize restaurant foot traffic.

Proprietary channel checks indicate that the sales recovery began gaining traction in September, positioning the chain for broader fundamental improvement ahead. Against that backdrop, analysts anticipate that same-store sales metrics will ultimately inflect positive by fiscal year 2027 as operational momentum builds across the location footprint.

Original Article

You May Also Be Interested In

• Wells Fargo Upgrades Sweetgreen Inc (SG) to Overweight, 'we see upside ahead'
• Moody’s cuts Dave & Buster’s outlook to negative on sales slump
• Gen Digital CEO addresses GoDaddy acquisition rumors