12:27 PM EST, 02/27/2025 (MT Newswires) -- Sweetgreen ( SG ) remains a "compelling long-term growth story," despite short-term challenges impacting Q1 trends, UBS Securities said in a report Thursday.

Q1 sales were significantly affected by weather disruptions and California wildfires, but trends have improved sequentially. With a projected 1% to 3% same-store sales growth in 2025, Q2 through Q4 performance is expected to align with existing nearly 4% growth targets, UBS said.

Sweetgreen ( SG ) plans to open at least 40 new locations in 2025, including about 20 Infinite Kitchen units, along with 3 to 5 retrofits or relocations, bringing total Infinite Kitchen openings to at least 25, UBS said.

Sales are expected to reaccelerate in 2025, driven by menu innovation, loyalty program enhancements, kitchen automation, and marketing efforts. While margins faced short-term pressure, they are expected to expand through cost efficiencies and automation, the report said.

Sweetgreen ( SG ) reported a fiscal Q4 net loss of $0.25 per diluted share, widening from $0.24 a year earlier, while revenue rose to $160.9 million from $153 million in the same period.

UBS maintained a buy rating on Sweetgreen ( SG ) and adjusted its price target to $35 from $45.

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