Sweetgreen (SG) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: 5.74%
• EPS Growth: -1.95%
• Country: US
• Employees: 6,407
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Restaurants
• EPS (TTM): -0.15
• Shares Outstanding: 106,318,360
• 10 Day Avg. Volume: 4,706,058
• 30 Day Avg. Volume: 6,526,735
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 2.58
• Enterprise Value/Gross Profit: 13.87
• Enterprise Value/Ebitda: -61.93
• 1Y Price Target: $14.64
• Price Target Upside: 63.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 46 Neutral
• Price Target: $8.50 ▼(-4.82% Downside)

Sweetgreen's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability challenges. Technical analysis indicates a bearish trend, and valuation metrics are weak due to ongoing losses. The earnings call provided some positive insights, and the new CFO appointment is a promising development for future financial stability.

Positive Factors

Leadership Changes

The incoming CFO’s background from CMG is seen as a plus for Sweetgreen, providing valuable experience to the company.

Operational Improvements

Renewed vigor around operations is perhaps the single greatest positive wildcard for the brand, with a focus on shortening hold times for hot food, improving throughput, lessening the variance of portion sizes, and developing the people flywheel to better staff new units and improve labor productivity.

Product and Loyalty Initiatives

New seasonal items and loyalty programs continue to build, which may ease the drag on performance.

Negative Factors

Financial Performance

Sweetgreen's stock is down 73% year-to-date, reflecting a tough year with operational issues and macroeconomic pressures.

Geographic and Market Risks

Key risks include geographic portability, a high concentration of locations in the New York metro area, and greater-than-average exposure.

Sales and Earnings

Sweetgreen's sales checks remain pressured with persistent weakness, indicating potential for another sales miss without improvement.

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 shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with moderate leverage, but negative net profit and EBIT margins, along with declining free cash flow, are significant concerns.

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	686.22M	676.83M	584.04M	470.11M	339.87M	220.62M
Gross Profit	127.70M	132.95M	101.92M	69.29M	40.41M	-8.70M
EBITDA	-28.61M	-23.16M	-52.51M	-142.32M	-117.39M	-113.97M
Net Income	-98.04M	-90.37M	-113.38M	-190.44M	-153.18M	-141.22M
Balance Sheet
Total Assets	831.88M	856.76M	856.56M	908.93M	762.65M	265.68M
Cash, Cash Equivalents and Short-Term Investments	168.45M	214.79M	257.23M	331.61M	471.97M	102.64M
Total Debt	338.73M	330.71M	302.87M	300.74M	0.00	0.00
Total Liabilities	408.58M	410.61M	373.96M	367.71M	109.53M	573.04M
Stockholders Equity	423.30M	446.14M	482.60M	541.23M	653.12M	-307.36M
Cash Flow
Free Cash Flow	-82.37M	-48.81M	-69.31M	-145.43M	-157.30M	-147.25M
Operating Cash Flow	18.18M	43.39M	26.48M	-43.17M	-64.53M	-90.35M
Investing Cash Flow	-100.47M	-92.21M	-95.67M	-102.02M	-97.55M	-58.41M
Financing Cash Flow	9.78M	8.89M	-5.20M	4.63M	531.61M	2.15M

Sweetgreen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.93
• 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 Negative. The current price of 8.93 is below the 20-day moving average (MA) of 9.20, below the 50-day MA of 11.88, and below the 200-day MA of 21.92, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 35.44 is Neutral, neither overbought nor oversold. The STOCH value of 29.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG.

Sweetgreen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	68 Neutral	$3.04B	18.80	41.01%	1.78%	4.77%	38.24%
FWRG	67 Neutral	$1.14B	284.25	0.69%	―	14.53%	-83.26%
PTLO	67 Neutral	$508.60M	14.93	7.36%	―	3.62%	17.67%
SHAK	66 Neutral	$4.35B	215.77	4.16%	―	13.13%	-25.05%
WEN	63 Neutral	$1.94B	10.61	99.35%	7.55%	1.31%	-1.46%
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
SG	46 Neutral	$1.03B	―	-21.95%	―	5.74%	-1.95%

Sweetgreen Corporate Events

Sweetgreen Announces New CFO Appointment Amid Leadership Change

On September 4, 2025, Sweetgreen announced the retirement of Mitch Reback as Chief Financial Officer, effective September 21, 2025, and the appointment of Jamie McConnell as his successor, effective September 22, 2025. McConnell, who brings over 20 years of financial leadership experience, will oversee Sweetgreen’s finance department and report directly to CEO Jonathan Neman. Reback, who has been with Sweetgreen since 2015, will continue in an advisory role for six months to ensure a smooth transition. This leadership change is expected to support Sweetgreen’s ongoing growth and strengthen its financial foundation for long-term profitability.

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.