Sweetgreen (SG) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: N/A
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: 11.10%
• EPS Growth: 18.05%
• Country: US
• Employees: 6,407
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Restaurants
• EPS (TTM): -0.21
• Shares Outstanding: 105,788,300
• 10 Day Avg. Volume: 4,024,217
• 30 Day Avg. Volume: 4,625,747
• PEG Ratio: -6.84
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -100.26
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 14.28
• Enterprise Value/Ebitda: -17.33
• 1Y Price Target: $20.45
• Price Target Upside: 34.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 59 Neutral
• Price Target: $15.00 ▼(-1.45%Downside)

Sweetgreen's overall score is primarily influenced by its financial performance, which shows growth but lacks profitability, and technical indicators suggesting neutral to negative momentum. Valuation is a significant concern due to the negative P/E ratio. Positives from the earnings call and a strategic COO appointment slightly offset these challenges.

Positive Factors

Customer Acquisition

New customer acquisition remains strong, with the brand successfully expanding its customer base with items like protein plates, steak, and Ripple Fries.

Margin Improvement

Infinite Kitchens are expected to dramatically improve the margin profile over the next three years, alongside identified opportunities in delivery fees, occupancy, and labor.

Market Positioning

The company is well positioned within restaurants as the number one fast casual salad player, with strong average unit volumes and competitive advantages in food quality, digital capabilities, and automation.

Negative Factors

Financing Concerns

The pursuit of Infinite Kitchens aggressively may result in a financing overhang, creating concerns about future financial stability.

Sales Performance

Concerns are raised about missing same store sales targets, which may prevent the company from receiving credit for its Infinite Kitchens initiative.

Urban Market Challenges

Sweetgreen experienced a decline in sales due to weakness in the urban lunch business, where a significant portion of its sales occur.

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 products, which include salads, warm bowls, and seasonal offerings. The company operates a direct-to-consumer model via its physical store locations and an online platform that facilitates pickup and delivery services. Sweetgreen's earnings are bolstered by its loyalty program and mobile app, encouraging repeat business and enhancing customer engagement. Additionally, collaborations with local farmers and suppliers help optimize ingredient costs, contributing to its profitability. Strategic partnerships with delivery platforms also expand Sweetgreen's reach, enabling it to serve a broader customer base and increase sales.

Sweetgreen Financial Statement Overview

Summary

Sweetgreen demonstrates positive revenue growth and improved cost management, but remains unprofitable. The balance sheet is robust with strong cash reserves, yet increased leverage poses potential risks. Positive operating cash flows are encouraging, though negative free cash flows highlight areas needing improvement. Overall, while there are strengths in growth and liquidity, profitability and leverage require close attention.

Income Statement

Sweetgreen's revenue has grown consistently over the years, with a notable increase in the TTM (Trailing-Twelve-Months). However, the company is still operating at a net loss, impacting its net profit margins negatively. The gross profit margin shows improvement, indicating better cost management, but the negative EBIT and EBITDA margins highlight ongoing challenges in achieving operational profitability.

Balance Sheet

The company's balance sheet showcases a solid equity base with a stable equity ratio. However, the debt-to-equity ratio has increased, indicating higher leverage, which could pose risk if not managed properly. The return on equity remains negative due to ongoing net losses, but the company maintains a healthy cash position to cover debts.

Cash Flow

Sweetgreen's cash flow from operations has turned positive, which is a positive sign for future financial stability. However, free cash flow remains negative, impacting the overall cash flow health. The company's cash reserves provide a buffer, but continued negative free cash flow could limit future growth opportunities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	676.83M	584.04M	470.11M	339.87M	220.62M
Gross Profit	132.95M	101.92M	69.29M	40.41M	-8.70M
EBITDA	-24.07M	-53.39M	-142.32M	-117.39M	-113.97M
Net Income	-90.37M	-113.38M	-190.44M	-153.18M	-141.22M
Balance Sheet
Total Assets	856.76M	912.25M	908.93M	762.65M	265.68M
Cash, Cash Equivalents and Short-Term Investments	214.79M	257.23M	331.61M	471.97M	102.64M
Total Debt	330.71M	302.87M	300.74M	0.00	0.00
Total Liabilities	410.61M	429.66M	367.71M	109.53M	573.04M
Stockholders Equity	446.14M	482.60M	541.23M	653.12M	198.28M
Cash Flow
Free Cash Flow	-41.07M	-69.31M	-145.43M	-157.30M	-147.25M
Operating Cash Flow	43.39M	26.48M	-43.17M	-64.53M	-90.35M
Investing Cash Flow	-92.21M	-95.67M	-102.02M	-97.55M	-58.41M
Financing Cash Flow	8.89M	-5.20M	4.76M	531.61M	2.15M

Sweetgreen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.22 is above the 20-day moving average (MA) of 13.79, above the 50-day MA of 13.75, and below the 200-day MA of 26.18, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 is Negative, 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
CAKE	74 Outperform	$3.10B	19.68	46.60%	1.64%	4.42%	48.23%
PTLO	72 Outperform	$837.18M	25.17	7.37%	―	4.57%	6.89%
SHAK	70 Outperform	$5.75B	467.80	2.70%	―	14.07%	-47.47%
FWRG	69 Neutral	$1.08B	101.21	1.86%	―	14.43%	-53.71%
WEN	68 Neutral	$2.01B	11.17	90.40%	8.21%	2.18%	-5.15%
Sector *	64 Neutral	£1.73B	10.39	6.12%	301.19%	0.55%	-32.84%
SG	59 Neutral	$1.68B	―	-19.79%	―	11.10%	18.05%

Sweetgreen Corporate Events

Sweetgreen Holds Annual Meeting, Elects Directors

On June 12, 2025, Sweetgreen, Inc. held its Annual Meeting of Stockholders where stockholders elected nine directors, ratified Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending December 28, 2025, and approved executive compensation on a nonbinding basis. These decisions reflect the company’s ongoing commitment to maintaining strong governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (SG) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Sweetgreen stock, see the SG Stock Forecast page.

Sweetgreen Appoints Jason Cochran as COO

On April 29, 2025, Sweetgreen announced the appointment of Jason Cochran as Chief Operating Officer, effective May 5, 2024. Cochran, bringing over 25 years of operational leadership experience, will oversee Field Operations and Operations Services and Innovation, reporting directly to CEO Jonathan Neman. His previous roles include CEO of American West Restaurant Group and Vice President of Operations Services at Chipotle Mexican Grill. Cochran’s appointment is expected to support Sweetgreen’s growth and operational excellence, aligning with the company’s mission to scale its impact across communities.