Shares of Sweetgreen, Inc. (SG) plummeted 12.60% in pre-market trading on Friday, following the company's disappointing financial outlook for fiscal year 2025. The salad chain's stock is under significant pressure after releasing its first-quarter results and providing a cautious forecast that fell short of market expectations.

Sweetgreen lowered its 2025 revenue guidance to between $740 million and $760 million, down from its previous projection of $760 million to $780 million. This reduction, coupled with the announcement of approximately flat same-store sales change for FY25, has sparked concerns among investors about the company's growth prospects. Adding to the worries, Sweetgreen reported a 3.1% decline in same-store sales for the first quarter of 2025, indicating challenges in maintaining customer traffic and transaction values at established locations.

The market's reaction was further exacerbated by analysts' responses to the news. Morgan Stanley cut Sweetgreen's price target to $22 from $24, while maintaining an equalweight rating on the stock. RBC Capital lowered its price target to $25 from $30, and Oppenheimer reduced its target to $29 from $35. Despite these adjustments, some analysts remain optimistic, with RBC Capital maintaining an Outperform rating. However, the series of downward revisions in price targets reflects growing concerns about Sweetgreen's near-term growth potential and profitability, contributing to the significant stock plunge in pre-market trading.