Sweetgreen (SG) AI Stock Analysis

• Market Cap: $640.40M
• Dividend Yield: N/A
• Average Volume (3M): 3.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 2.43%
• EPS Growth: -23.25%
• Country: US
• Employees: 6,407
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.40
• Shares Outstanding: 106,479,980
• 10 Day Avg. Volume: 3,388,791
• 30 Day Avg. Volume: 3,809,424
• PEG Ratio: -0.13
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -6.71
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 10.54
• Enterprise Value/Ebitda: -14.85
• 1Y Price Target: $7.44
• Price Target Upside: 21.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): -0.73
• Revenue Forecast (FY): $752.28M

• Rating: 46 Neutral
• Price Target: $6.00 ▼(-2.28% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by persistent losses, deteriorating free cash flow, and rising leverage risk. Technical signals are mixed with longer-term trend weakness, while the earnings call adds modest support via strategic actions and expected liquidity, but does not offset negative comps and continued negative EBITDA guidance. Valuation is also limited by negative earnings and no dividend yield.

Positive Factors

Liquidity and cost reduction from Spyce sale

The Spyce divestiture provides a meaningful, durable liquidity cushion (~$100M) and reduces recurring G&A by ~$8M. Licensing Infinite Kitchen preserves operational benefits without capex, lowering cash burn and extending runway to execute the transformation and pursue profitable growth.

Operational improvements from Transformation Plan

Measured gains in throughput and higher operational standards indicate sustainable unit-level productivity improvements. Improved peak-hour capacity and standardized operations support durable uplift in restaurant-level margins and better scalability as Sweetgreen expands its store footprint.

Digital loyalty and customer experience

Rising loyalty program frequency and digital features like Scan to Pay are structural drivers of repeat visits and faster throughput. Enhanced personalization and CRM capabilities lower acquisition costs and sustainably raise lifetime value and revenue per customer.

Negative Factors

Persistent negative cash flow

Ongoing negative operating and free cash flow signals that core operations are cash-consuming rather than self-funding. This increases reliance on financings or asset sales, restricts reinvestment in restaurants and marketing, and raises dilution or refinancing risk over time.

Rising leverage and shrinking equity cushion

Higher debt alongside declining equity reduces the balance sheet buffer, increasing solvency and interest-rate sensitivity. A thinner equity cushion limits strategic flexibility, elevates refinancing risk, and constrains the company's ability to absorb further operating shortfalls during downturns.

Weak same-store sales and core demographic demand

A 9.5% comp decline concentrated in Northeast and LA, plus a ~15% drop among 25–35-year-olds, points to structural demand headwinds in key markets and demographics. Sustained weaker demand makes margin recovery and scale economics harder to achieve over the medium term.

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

Despite multi-year revenue growth, profitability and cash generation remain weak: net losses persist with meaningfully negative margins, EBITDA is negative, operating cash flow turned negative in 2025, and free cash flow is consistently negative (worsening materially in 2025). Leverage has risen as equity declined, increasing risk if losses continue.

Income Statement

Revenue has expanded strongly from 2021–2024 (positive growth each year), but the latest annual period shows essentially flat revenue (~$679M vs. ~$677M) and a sharp deterioration in the reported growth rate. Profitability remains the core issue: net losses persist every year, and margins are still meaningfully negative (about -13% in 2024 and about -20% in 2025). EBITDA is negative across the period, and operating losses continue, indicating the business has not yet reached sustainable scale despite top-line gains.

Balance Sheet

The balance sheet shows moderate leverage but worsening trends: total debt rose (about $303M in 2023 to ~$354M in 2025) while equity declined (about $483M to ~$356M), pushing debt-to-equity close to 1.0 in 2025. Total assets are sizable (~$788M), but recurring net losses are translating into negative returns on equity (roughly -20% to -38% in recent years). Overall, solvency is not immediately distressed, but the shrinking equity cushion and rising leverage increase risk if losses continue.

Cash Flow

Cash generation is volatile and recently weakened: operating cash flow was positive in 2023–2024 but turned negative in 2025 (about -$13M), suggesting profitability and/or working-capital pressures. Free cash flow is consistently negative and deteriorated materially in 2025 (about -$119M), implying ongoing funding needs to support operations and investment. While free cash flow improved versus earlier years at times, the overall profile remains cash-consuming rather than self-funding.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	679.47M	676.83M	584.04M	470.11M	339.87M
Gross Profit	0.00	132.95M	101.92M	69.29M	40.41M
EBITDA	-62.46M	-23.16M	-52.51M	-142.32M	-117.39M
Net Income	-134.06M	-90.37M	-113.38M	-190.44M	-153.18M
Balance Sheet
Total Assets	788.10M	856.76M	856.56M	908.93M	762.65M
Cash, Cash Equivalents and Short-Term Investments	89.18M	214.79M	257.23M	331.61M	471.97M
Total Debt	354.49M	330.71M	302.87M	300.74M	0.00
Total Liabilities	431.98M	410.61M	373.96M	367.71M	109.53M
Stockholders Equity	356.13M	446.14M	482.60M	541.23M	653.12M
Cash Flow
Free Cash Flow	-119.19M	-48.81M	-69.31M	-145.43M	-157.30M
Operating Cash Flow	-12.70M	43.39M	26.48M	-43.17M	-64.53M
Investing Cash Flow	-114.25M	-92.21M	-95.67M	-102.02M	-97.55M
Financing Cash Flow	2.86M	8.89M	-5.20M	4.63M	531.61M

Sweetgreen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.14
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 6.14 is above the 20-day moving average (MA) of 5.77, below the 50-day MA of 6.58, and below the 200-day MA of 9.23, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 69.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG.

Sweetgreen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	69 Neutral	$3.21B	21.05	33.74%	2.11%	4.90%	27.14%
TXRH	68 Neutral	$11.95B	29.62	28.77%	1.63%	14.40%	12.45%
CAVA	64 Neutral	$7.86B	159.03	8.64%	―	23.93%	153.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	58 Neutral	$3.82B	90.50	8.83%	―	13.49%	402.23%
SG	46 Neutral	$640.40M	-6.07	-26.47%	―	2.43%	-23.25%
PZZA	45 Neutral	$1.13B	30.46	―	4.72%	-0.64%	-60.71%

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.