Analysts see traffic-driven Q2 recovery for Sweetgreen

Health-focused US restaurant group Sweetgreen Inc. (NYSE: SG) has spent the past year on the back foot, as declining customer traffic compounded mounting price sensitivity among diners. The extent of the slowdown was laid bare in Q1 2026. Traffic fell 13.5%, accounting for the bulk of a 12.8% decline in same-store sales, with adverse mix shifts doing the remainder of the damage.

Management has since pivoted towards restoring throughput and consistency, with a renewed focus on operational efficiency, simplified menus and sharper value messaging. The aim is to stabilise traffic trends while protecting restaurant-level margins.

Early signs of improvement are expected to emerge in Q2. Based on Visible Alpha consensus, analysts forecast same-store sales declines moderating to -4.18%, with traffic and mix improving to -4.83%, a notable step-up from the double-digit contraction seen in the prior quarter. Revenues are projected to rise 4.2% year-on-year to $193 million, marking a return to growth after a 2.9% decline in Q1 and reversing the sequential slowdown that began in Q3 2025.

Looking ahead, the trajectory is expected to strengthen further into the second half, with both traffic and total same-store sales anticipated to turn positive by Q4.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.