Sweetgreen shares erase Cyclospora slump as Wells Fargo upgrades

Sweetgreen Inc (NYSE:SG) saw its shares rise on Monday following an upgrade by Wells Fargo & Co. The fast-casual salad chain's stock jumped as much as 2.3% in trading after receiving the rating of Overweight from analyst Anthony Trainor. Trainor raised his rating from Equal Weight and set an $11 price target for the stock. The upgrade comes as the company recovers from a summer parasite outbreak that temporarily affected customer traffic.

Trainor pointed to an improved operational backdrop after six quarters marked by demand headwinds and execution issues. He noted that executive leadership provided a more optimistic outlook during a recent investor conference, which reflected key operational adjustments aimed at restoring consumer confidence and stabilizing restaurant foot traffic.

According to proprietary channel checks, the sales recovery started gaining momentum in September, suggesting that the chain is positioned for broader fundamental improvement ahead. Analysts expect same-store sales metrics to eventually turn positive by fiscal year 2027 as operational momentum builds across Sweetgreen's location footprint.