KeyBanc upgrades Sweetgreen stock rating on sales turnaround

Investment firm KeyBanc has upgraded Sweetgreen Inc (NYSE:SG) stock to Overweight, setting a price target of $9.00, according to Investing.com. The current stock price is $6.84, suggesting a 32% upside potential. Sweetgreen has shown promising growth in the past six months, with a 22% increase and delivering strong returns over the last month.

The analyst has increased projections for same-store sales, restaurant-level margin, and adjusted EBITDA for 2026 and 2027. KeyBanc views Sweetgreen as a compelling turnaround opportunity in the restaurant sector, benefiting from the brand's new wraps platform. The firm expects same-store sales to return to flat year-over-year by the fourth quarter of 2026, up from their previous estimate of a -5% decline and consensus of -2.2%.

Sales growth is expected to reach 5.5% in 2027, compared to prior estimates of -0.5% and a consensus of 3.6%. Sweetgreen's wraps are projected to provide a 2% comparable sales tailwind in the coming quarters. Analysts believe the stock is currently undervalued, with a Fair Value estimate above the current trading price.