Sweetgreen, Inc. (SG) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release

Sweetgreen (SG) is anticipated to report a Q2 2025 loss of $0.12 per share on $191.54 million in revenue when it releases results on August 7. However, analyst sentiment has turned bearish, with the consensus EPS estimate revised 6.41% lower over the past 30 days. Coupled with a negative Zacks Earnings ESP of -26.76% and a Zacks Rank of #4, the company is not considered a strong candidate for an earnings beat, particularly given its history of missing estimates in the last four quarters, signaling potential downside risk for the stock.

Analysis

Sweetgreen, Inc. (SG) is approaching its upcoming earnings release with a consensus expectation for a 3.7% year-over-year revenue increase to $191.54 million and a narrowed loss of $0.12 per share, representing a 7.7% improvement. However, this outlook is clouded by significant bearish signals. Analyst sentiment has deteriorated over the last 30 days, evidenced by a 6.41% downward revision to the consensus EPS estimate. This negative trend is further quantified by a Zacks Rank of #4 (Sell) and a deeply negative Earnings ESP of -26.76%, a combination that suggests a low probability of the company beating earnings estimates. This concern is amplified by Sweetgreen's historical performance, as it has failed to surpass consensus EPS estimates in any of the last four quarters, establishing a clear pattern of underperformance against expectations.

Key Decisions for Investors

• Given the combination of a Zacks Rank #4 (Sell), a strongly negative Earnings ESP, and a trend of downward revisions, investors should exercise caution and consider reducing exposure or hedging long positions ahead of the report.
• The stock is a poor candidate for a pre-earnings bullish position due to its consistent history of missing EPS estimates and the current bearish analyst sentiment.
• Investors should look beyond the headline results on August 7 and scrutinize management's forward-looking guidance, as any sustainable price movement will likely depend on a significant change in the company's discussed business conditions rather than the reported numbers themselves.