Sweetgreen (SG) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 6.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 5.74%
• EPS Growth: -1.95%
• Country: US
• Employees: 6,407
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Restaurants
• EPS (TTM): -0.15
• Shares Outstanding: 106,318,360
• 10 Day Avg. Volume: 8,904,512
• 30 Day Avg. Volume: 6,235,956
• 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: 1.55
• Enterprise Value/Revenue: 2.58
• Enterprise Value/Gross Profit: 16.15
• Enterprise Value/Ebitda: -59.02
• 1Y Price Target: $14.27
• Price Target Upside: 48.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 44 Neutral
• Price Target: $9.50 ▼(-1.14% Downside)

Sweetgreen's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates bearish momentum, and valuation metrics are weak due to ongoing losses. The earnings call provided some positive insights, but these are overshadowed by declining same-store sales and market challenges.

Positive Factors

Growth Prospects

SG reiterated the unit growth algorithm of +15%-20%, noting recent class of openings remain strong.

New Offerings

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

Operational Improvements

SG admitted that two-thirds of stores are below its operational standards, with a project under the new COO aiming to lift these and improve consistency.

Negative Factors

Competitive Pressure

The company's focus on urban markets faces pressure from intensified competition and limited relief from a plateaued return to office dynamics.

Financial Performance

Q2 missed, Jul. still negative & FY guide cut all confirm concerns that '25 is a setback year, as SG invests in value (loyalty, portions), retools innovation & changes operations.

Sales Challenges

Same store sales in the second quarter were -7.6%, falling short of expectations.

Sweetgreen Business Overview & Revenue Model

Company Description

Sweetgreen (SG) is a prominent player in the fast-casual restaurant sector, specializing in fresh, made-to-order salads and grain bowls. Founded in 2007, the company emphasizes sustainability, sourcing local and organic ingredients whenever possible. Sweetgreen operates numerous locations across the United States, striving to offer healthy, convenient meal options to health-conscious consumers.

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	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	109.71M	132.95M	101.92M	69.29M	40.41M	-35.55M
EBITDA	-30.02M	-24.07M	-53.39M	-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	912.25M	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	429.66M	367.71M	109.53M	573.04M
Stockholders Equity	423.30M	446.14M	482.60M	541.23M	653.12M	198.28M
Cash Flow
Free Cash Flow	20.80M	-41.07M	-69.31M	-145.43M	-157.30M	-147.25M
Operating Cash Flow	30.26M	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	4.76M	531.61M	2.15M

Sweetgreen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 9.61 is below the 20-day moving average (MA) of 12.57, below the 50-day MA of 13.11, and below the 200-day MA of 24.11, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 29.26 is Positive, neither overbought nor oversold. The STOCH value of 15.84 is Positive, 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	77 Outperform	$3.11B	19.19	41.01%	1.67%	4.77%	38.24%
FWRG	68 Neutral	$1.09B	273.09	0.69%	―	14.53%	-83.26%
PTLO	68 Neutral	$597.51M	17.66	7.36%	―	3.62%	17.67%
SHAK	66 Neutral	$4.71B	232.85	4.16%	―	13.13%	-25.05%
Sector *	64 Neutral	€7.28B	16.38	11.67%	3.52%	0.79%	-60.56%
WEN	60 Neutral	$1.93B	10.55	99.35%	8.44%	1.31%	-1.46%
SG	44 Neutral	$1.14B	―	-21.95%	―	5.74%	-1.95%

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.