William Blair analyst Sharon Zackfia has reiterated their bullish stance on SG stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on Sweetgreen’s strategic initiatives aimed at enhancing customer engagement and operational efficiency. The company is focusing on expanding its menu with new items and leveraging a newly launched loyalty program to increase customer frequency. Additionally, Sweetgreen’s efforts to improve its value proposition through increased scale and a higher proportion of high-margin Infinite Kitchens are expected to bolster profitability.
Moreover, Sweetgreen is experiencing strong new customer acquisition and is opening new units at higher volumes and profitability. The management’s commitment to growing the unit base by 15% to 20% annually, along with plans to achieve restaurant-level margins in the mid-20% range, further supports the positive outlook. Despite facing challenges in urban lunch business sales, the company’s multipronged strategy to improve frequency, including seasonal offerings and collaborations, is anticipated to drive future growth.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $25.00 price target.
Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SG in relation to earlier this year.