Is Sweetgreen a Buy, Sell, or Hold in 2026?

By Neil Patel – Mar 10, 2026 at 6:15AM ESTKey PointsSweetgreen’s expensive menu items are facing weaker demand in today’s economic climate. Ongoing net losses show that the business model isn’t sustainable yet, adding risk. The share price has gotten hammered to the point where the valuation is cheap, but this isn’t a reason to buy. Investing in up-and-coming restaurant stocks can be lucrative. As a business opens new locations, acquires more customers, builds its brand reputation, and pushes up revenue and profits, the gains can be magnificent. This is the recipe that the bulls are hoping Sweetgreen (SG +6.94%) can take advantage of. Is this restaurant stock a buy, sell, or hold in 2026? Image source: Getty Images. It's difficult to be optimistic about Sweetgreen In recent memory, Chipotle is the most notable success story in the fast casual niche of the overall restaurant sector. The strategy emphasizes quality ingredients with quick service and reasonable prices, providing a more upscale experience than traditional fast food. Customers appreciate this offering. Sweetgreen's focus is on healthy salads and bowls, aiming to differentiate itself in the crowded industry. That positioning makes sense, and it has supported the company getting to 281 stores (as of Dec. 28, 2025) from 119 five years before. However, Sweetgreen's growth trajectory has hit a major roadblock. It's clear now that the more expensive menu items are exposed to macro trends. In fiscal 2025, revenue increased by just 0.4%, heavily influenced by same-store sales that fell 7.9%. Weak traffic was highlighted, something impacting the entire sector. Sweetgreen also isn't a profitable enterprise. The net loss totaled $134 million in fiscal 2025, which was worse than the year before. That trend is understandable. Sweetgreen needs to achieve greater scale and a higher revenue base if it wants to leverage its fixed costs and support profitability. But this outcome is not guaranteed. As part of its Sweet Growth Transformation Plan, management wants to boost the value perception of the brand. That will be critical to win sales, particularly in the current uncertain environment. ExpandNYSE: SGSweetgreenToday's Change(6.94%) $0.39Current Price$6.01Key Data PointsMarket Cap$710MDay's Range$5.28 - $6.0152wk Range$5.00 - $27.15Volume243Avg Vol4.4MGross Margin4.71% Struggling to satisfy investor appetites Sweetgreen shares have fallen precipitously. They have dropped 73% just over the past 12 months (as of March 5). The market has lost its appetite as growth is nonexistent. There is one positive way to view the situation. The valuation is dirt cheap. Investors can scoop up shares at a price-to-sales (P/S) ratio of 1. Since its initial public offering in November 2021, the stock sold for an average P/S multiple of 4. Value investors might find this opportunity too hard to pass up. It's enticing. Until the company can return to durable growth and an improving bottom line, though, I don't think the stock is investable. But because of how cheap it is, it might still make sense for existing shareholders who believe in a turnaround to hold.Read NextMar 9, 2026 •By David Jagielski, CPASweetgreen Expects Another Challenging Year Ahead. Is the Stock Destined for More of a Decline?Mar 4, 2026 •By Neil PatelIs Sweetgreen Stock Going to $10?Feb 28, 2026 •By Jeremy BowmanCan Wraps Save Sweetgreen?Feb 27, 2026 •By Jeremy BowmanWhy Sweetgreen Stock Was Sinking AgainJan 30, 2026 •By Jeremy BowmanWhy Sweetgreen Stock Was Going Sour This WeekJan 27, 2026 •By Selena MaranjianIs Sweetgreen (SG) Yesterday's News?About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedSweetgreenNYSE: SG$6.01(+6.94%)+$0.39*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.