Here's Why Sweetgreen Stock Plunged Today
Shares of salad-centric restaurant chain Sweetgreen (NYSE: SG) plunged on Wednesday after the company reported financial results for the third quarter of 2022. Revenue and profits came in lighter than Wall Street was hoping and the company lowered its expectations for the rest of 2022. As a result, Sweetgreen stock was down 20% as of 1:15 p.m. ET.
In Q3, Sweetgreen generated revenue of $124 million, an increase of 29% year over year. And importantly, same-store sales were up 6% from the prior-year quarter, adding to the company's top-notch average unit volume (AUV) of $2.9 million. For perspective, Sweetgreen's AUV of $2.9 million is better than top restaurant company Chipotle Mexican Grill's AUV of $2.8 million.
Wall Street lowered its price targets for Sweetgreen stock today in light of Q3 results. Oppenheimer analyst Brian Bittner and Cowen analyst Andrew Charles set price targets of $25 per share and $19 per share, respectively, coming down from $30 per share and $23 per share. Both would still recommend buying Sweetgreen stock. However, lowering their price targets didn't give the market confidence.
Source Fool.com
