Sweetgreen (SG) AI Stock Analysis

• Market Cap: $907.93M
• Dividend Yield: N/A
• Average Volume (3M): 4.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: 2.43%
• EPS Growth: -23.25%
• Country: US
• Employees: 6,407
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.24
• Shares Outstanding: 106,479,980
• 10 Day Avg. Volume: 4,529,432
• 30 Day Avg. Volume: 4,090,733
• PEG Ratio: 1.84
• Price to Book (P/B): 8.12
• Price to Sales (P/S): 5.35
• P/FCF Ratio: -74.25
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 12.28
• Enterprise Value/Ebitda: -27.97
• 1Y Price Target: $7.57
• Price Target Upside: -1.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $7.00 ▼(-8.74% Downside)

The score is primarily held back by weak financial performance (declining revenue, ongoing losses, and negative free cash flow). Technicals are only mildly supportive with neutral momentum and a longer-term downtrend. Earnings call updates add some offsetting positives (transformation plan and liquidity from the Spyce sale), but guidance still points to negative EBITDA, and valuation remains challenged due to losses and no dividend support.

Positive Factors

Sweet Growth Transformation Plan

The Sweet Growth Transformation Plan aims to enhance operational efficiency and brand strength, potentially improving long-term profitability and market position.

Strategic Sale of Spyce

The sale of Spyce provides significant liquidity, reducing financial strain and allowing Sweetgreen to focus on core operations and growth initiatives.

New Restaurant Openings

Expanding into new markets with innovative restaurant formats supports long-term revenue growth and strengthens Sweetgreen's competitive position.

Negative Factors

Same-Store Sales Decline

A decline in same-store sales indicates challenges in maintaining customer engagement and market share, impacting long-term revenue stability.

Adjusted EBITDA Loss

Ongoing EBITDA losses reflect operational inefficiencies and cost management issues, posing risks to financial sustainability and profitability.

Challenges with Younger Consumer Base

Decreased spending by a key demographic could affect future growth, as this group represents a significant portion of the customer base.

Sweetgreen Business Overview & Revenue Model

Company Description

Sweetgreen, Inc., together with its subsidiaries, develops and operates fast-casual restaurants serving healthy foods prepared from seasonal and organic ingredients. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that can be redeemed in its restaurants. As of September 26, 2021, it owned and operated 140 restaurants in 13 states and Washington, D.C. The company was founded in 2006 and is headquartered in Los Angeles, California.

How the Company Makes Money

Sweetgreen generates revenue primarily through the sale of its food and beverage offerings in its restaurants. The company operates a direct-to-consumer model, allowing customers to place orders online or through its mobile app for both in-store pickup and delivery. Key revenue streams include dine-in sales, takeout orders, and digital sales through its app and website. Additionally, Sweetgreen has explored partnerships with delivery services to enhance its reach and convenience for customers. The company also emphasizes its focus on customer loyalty programs and subscription services, providing incentives for repeat purchases and fostering a dedicated customer base, which contributes significantly to its earnings.

Sweetgreen Financial Statement Overview

Summary

Sweetgreen shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with moderate leverage, but improving margins and cash flow is crucial for future growth.

Income Statement

Sweetgreen's revenue shows a positive growth trend, with a TTM growth rate of 13.7%. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 15.99%, indicating challenges in cost management. Overall, while revenue growth is promising, profitability remains a significant concern.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.80, suggesting manageable leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, indicating a solid capital structure. While the company maintains a reasonable balance between debt and equity, the lack of profitability impacts overall financial health.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a significant negative growth rate. The operating cash flow to net income ratio is below 1, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive, but overall cash flow management needs improvement to support long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	685.18M	676.83M	584.04M	470.11M	339.87M	220.62M
Gross Profit	96.97M	132.95M	101.92M	69.29M	40.41M	-8.70M
EBITDA	-42.56M	-23.16M	-52.51M	-142.32M	-117.39M	-113.97M
Net Income	-113.37M	-90.37M	-113.38M	-190.44M	-153.18M	-141.22M
Balance Sheet
Total Assets	824.77M	856.76M	856.56M	908.93M	762.65M	265.68M
Cash, Cash Equivalents and Short-Term Investments	129.97M	214.79M	257.23M	331.61M	471.97M	102.64M
Total Debt	356.41M	330.71M	302.87M	300.74M	0.00	0.00
Total Liabilities	431.47M	410.61M	373.96M	367.71M	109.53M	573.04M
Stockholders Equity	393.30M	446.14M	482.60M	541.23M	653.12M	-307.36M
Cash Flow
Free Cash Flow	-107.37M	-48.81M	-69.31M	-145.43M	-157.30M	-147.25M
Operating Cash Flow	2.08M	43.39M	26.48M	-43.17M	-64.53M	-90.35M
Investing Cash Flow	-111.05M	-92.21M	-95.67M	-102.02M	-97.55M	-58.41M
Financing Cash Flow	5.81M	8.89M	-5.20M	4.63M	531.61M	2.15M

Sweetgreen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG, the sentiment is Positive. The current price of 7.67 is above the 20-day moving average (MA) of 7.00, above the 50-day MA of 6.60, and below the 200-day MA of 11.61, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 64.28 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG.

Sweetgreen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	70 Outperform	$11.94B	27.97	31.55%	1.63%	14.40%	12.45%
CAVA	70 Neutral	$8.07B	59.99	19.84%	―	23.93%	153.50%
CAKE	66 Neutral	$2.84B	17.49	39.14%	2.11%	4.90%	27.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	60 Neutral	$3.92B	90.18	8.83%	―	13.49%	402.23%
PZZA	57 Neutral	$1.24B	32.89	―	4.72%	-0.64%	-60.71%
SG	48 Neutral	$907.93M	-7.94	-26.47%	―	2.43%	-23.25%

Sweetgreen Corporate Events

Sweetgreen Finalizes Spyce Sale and Strategic Refocus

On December 29, 2025, Sweetgreen completed the previously announced sale of its Spyce business unit, which developed the Infinite Kitchen automation technology, to Wonder Group for $100 million in cash and $86.4 million in Series C preferred stock. The deal, which follows Sweetgreen’s roughly $70 million acquisition of Spyce in 2021, transfers ownership of the Infinite Kitchen automation business and related assets to Wonder while allowing Sweetgreen to retain long-term access to the technology through a supply and services agreement and an intellectual property license, ensuring continued use of Infinite Kitchen systems in many of its restaurants. The transaction marks a strategic shift that lets Sweetgreen narrow its focus on core restaurant operations and operational efficiency, while offloading the capital-intensive automation platform yet preserving its role as a key component of the guest experience; certain Spyce employees moved to Wonder, and the two companies established ongoing commercial and licensing arrangements that define future responsibilities and risk allocation.

The most recent analyst rating on (SG) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Sweetgreen stock, see the SG Stock Forecast page.