Sweetgreen Shares Bounce Back After Wells Fargo Upgrade and Cyclospora Outbreak Clears

Shares of Sweetgreen, the casual salad chain, rose on September 28, 2026, following a Wells Fargo upgrade that lifted its rating from Equal Weight to Overweight. Wells Fargo set a new price target at $11 per share, signalling optimism about the company’s recovery and future growth.

This upgrade came as the impact of a recent Cyclospora outbreak, which had hurt demand across fresh prepared foods, began to fade. Federal health authorities linked the outbreak to iceberg lettuce supplied by Taylor Farms de Mexico, which was recalled in July. Sweetgreen was not implicated in the outbreak, as it does not serve iceberg lettuce.

The outbreak caused consumer worries that affected many brands in the fast-casual dining sector, including Sweetgreen. But with the Centers for Disease Control and Prevention declaring the outbreak over in mid-September, and the Food and Drug Administration continuing investigations, fears have eased. This helped Sweetgreen’s shares regain some of their lost ground.

Wells Fargo’s analysts noted that Sweetgreen’s operational improvements and faster restaurant service, partly thanks to its automated “Infinite Kitchen” format, are driving better performance. The company is also expecting strong unit growth and attractive returns on new restaurant openings.

Sweetgreen’s second quarter results showed total revenue of $192.7 million, up 3.8% from the previous year, though same-store sales fell 6.2%, reflecting a dip in customer traffic and product mix. The company reported a net loss of $26.3 million but remains focused on its turnaround plan, including new menu items like wraps and improved restaurant management.

Before the Cyclospora outbreak, Sweetgreen was already seeing some improvements in customer visits and sales, especially in key markets like Seattle and New York. The company is now aiming to attract new customers with increased marketing efforts and hopes to build on its operational progress as concerns around food safety fade.