Sweetgreen (SG)
NYSE:SG
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Sweetgreen
(NYSE:SG)
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Rating:44Neutral
Price Target:
$4.50
▼(-22.68% Downside)
Action:ReiteratedDate:02/28/26
The score is held down primarily by weak financial performance—persistent losses, negative free cash flow, and rising leverage. Technical indicators also reflect a clear downtrend. Offsetting these, the earnings call offered a cautiously constructive outlook with a targeted return to modest adjusted EBITDA profitability and operational improvements, but guidance still implies near-term demand pressure.
Positive Factors
Infinity Kitchen Efficiency
Infinity Kitchen's demonstrated AUV uplift and >700bp labor savings indicate sustainable unit-level economics improvement for stores that adopt the tech. Over 2–6 months this supports higher restaurant-level margins and a scalable model as more openings use the system, reducing labor intensity.
Negative Factors
Persistent Losses & Weak Margins
Ongoing annual net losses and deeply negative margins indicate the business has yet to reach sustainable profitability. This structural profitability shortfall constrains reinvestment, limits ability to self-fund growth, and risks further dilution or cost-cutting if margins don't normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Infinity Kitchen Efficiency
Infinity Kitchen's demonstrated AUV uplift and >700bp labor savings indicate sustainable unit-level economics improvement for stores that adopt the tech. Over 2–6 months this supports higher restaurant-level margins and a scalable model as more openings use the system, reducing labor intensity.
Read all positive factors
Sweetgreen (SG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$691.39M
Dividend YieldN/A
Average Volume (3M)4.22M
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth2.43%
EPS Growth-23.25%
CountryUS
Employees6,407
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.40
Shares Outstanding106,902,420
10 Day Avg. Volume3,566,106
30 Day Avg. Volume4,220,888
Financial Highlights & Ratios
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 Cap1.38
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit29.90
Enterprise Value/Ebitda-25.56
Forecast
1Y Price Target
$6.68Price Target Upside14.78% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)-0.72
Revenue Forecast (FY)$709.63M
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,...
How the Company Makes Money
Sweetgreen primarily makes money by selling food and beverages directly to customers through its company-owned restaurants. The core revenue stream is restaurant sales from in-store and digital orders (including pickup and delivery), with pricing ...
Sweetgreen Key Performance Indicators (KPIs)
Any
Restaurant Count
Counts the total number of restaurant locations, signaling the company's expansion strategy and market penetration.
Counts the total number of restaurant locations, signaling the company's expansion strategy and market penetration.
Data provided by:
The Fly
The FlySweetgreen Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: material near-term financial and traffic challenges (notably steep comp declines, margin pressure, and Q4 adjusted EBITDA losses) are tempered by clear operational fixes, product and digital initiatives, Infinity Kitchen benefits, meaningful menu innovation (Wraps), loyalty/digital engagement gains, and a $100M non-core sale improving cash. Management provided conservative 2026 guidance but a path to modest adjusted EBITDA profitability and improved restaurant-level margins, while acknowledging there is more work to do. Given the mix of notable operational progress and persistent financial headwinds, the outlook is cautiously constructive but not yet a full turnaround.Positive Updates
Full-Year Revenue and Scale
Fiscal 2025 revenue of $679.5 million and 35 net new restaurant openings during the year, ending with 281 locations, demonstrating continued expansion.
Negative Updates
Significant Comparable Sales and Traffic Declines
Fiscal 2025 comparable sales declined 7.9% year-over-year; Q4 sales $155.2 million vs. $160.9 million prior year with comparable sales down 11.5% driven by a 13.3% decrease in traffic and mix (partially offset by +1.8% menu price).
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Scale
Fiscal 2025 revenue of $679.5 million and 35 net new restaurant openings during the year, ending with 281 locations, demonstrating continued expansion.
Read all positive updates
Company Guidance
Sweetgreen guided fiscal 2026 same-store sales to decline between -4% and -2% with trends expected to improve through the year, and said the first quarter will be the most challenging (January comps were -11.8% and storms have weighed ~320 bps to date, with 70 bps of price in Q1 and 2025 carryover pricing rolling off mid‑February). They expect restaurant-level margin of 14.2%–14.7% and adjusted EBITDA of $1 million to $6 million, plan to open about 15 net new restaurants (nearly half with Infinite Kitchen technology), enter two new markets (Nashville and Salt Lake City), and said underlying support-center costs for 2026 (ex-stock comp and one‑time items) should be ~13% of revenue (down from 15.3% in 2025), with the development pipeline weighted to the back half of the year.Sweetgreen Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| 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 | 31.99M | 132.95M | 101.92M | 69.29M | 40.41M |
| EBITDA | -37.43M | -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
Neutral
5.82
Price Trends
5.63
Positive
6.23
Negative
8.11
Negative
Market Momentum
-0.08
Negative
54.84
Neutral
86.56
Negative
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 5.82 is above the 20-day moving average (MA) of 5.36, above the 50-day MA of 5.63, and below the 200-day MA of 8.11, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG.
Sweetgreen Risk Analysis
Sweetgreen disclosed 60 risk factors in its most recent earnings report. Sweetgreen reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sweetgreen Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $10.99B | 32.67 | 28.20% | 1.63% | 14.40% | 12.45% | |
63 Neutral | $2.87B | 15.71 | 37.06% | 2.11% | 4.90% | 27.14% | |
63 Neutral | $10.03B | 109.16 | 8.43% | ― | 23.93% | 153.50% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.18B | 71.38 | 9.14% | ― | 13.49% | 402.23% | |
48 Neutral | $1.16B | 42.31 | -6.99% | 4.72% | -0.64% | -60.71% | |
44 Neutral | $691.39M | -4.04 | -33.40% | ― | 2.43% | -23.25% |
* Consumer Cyclical Sector Average
SG
Sweetgreen
5.82
-16.92
-74.41%
PZZA
Papa John's International
35.37
3.03
9.36%
TXRH
Texas Roadhouse
166.78
3.39
2.07%
CAKE
Cheesecake Factory
57.55
10.73
22.92%
SHAK
Shake Shack
97.86
10.24
11.69%
CAVA
CAVA Group, Inc.
86.21
-5.74
-6.24%
Sweetgreen Corporate Events
Business Operations and StrategyM&A Transactions
Sweetgreen Finalizes Spyce Sale and Strategic Refocus
Positive
Jan 5, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.