Sweetgreen, Inc. (SG)
NYSE:SG
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Sweetgreen
(NYSE:SG)
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Rating:52Neutral
Price Target:
$10.00
▲(45.56% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak financial performance (negative operating profitability and deeply negative free cash flow) and a cautious earnings outlook with continued negative same-store sales guidance. Technicals are the main offset, showing strong upward price momentum, while valuation is inconclusive due to a likely distorted low P/E and no dividend support.
Positive Factors
Digital & loyalty platform strength
Growth in owned digital channels and loyalty materially improves durable unit economics: higher frequency, better ARPU, lower third-party delivery fees, and first-party customer data that supports targeted marketing. These capabilities reduce reliance on marketplaces and sustain margin recovery over months.
Negative Factors
Negative operating and free cash flow
Sustained cash consumption undermines the company’s ability to self‑fund investments and absorb shocks. Negative FCF forces reliance on equity/debt or asset sales for growth, raising dilution or leverage risk and constraining capital allocation over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital & loyalty platform strength
Growth in owned digital channels and loyalty materially improves durable unit economics: higher frequency, better ARPU, lower third-party delivery fees, and first-party customer data that supports targeted marketing. These capabilities reduce reliance on marketplaces and sustain margin recovery over months.
Read all positive factors
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 (SG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend YieldN/A
Average Volume (3M)5.26M
Price to Earnings (P/E)1.1
Beta (1Y)1.78
Revenue Growth-1.55%
EPS GrowthN/A
CountryUS
Employees6,407
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.13
Shares Outstanding106,934,100
10 Day Avg. Volume7,080,906
30 Day Avg. Volume5,260,400
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 Cap1.17
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit19.09
Enterprise Value/Ebitda-20.69
Forecast
1Y Price Target
$7.57Price Target Upside10.14% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$706.94M
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 prepared food and beverages to customers at its company-operated restaurants. Revenue is generated through (1) in-restaurant transactions and (2) digital orders placed via Sweetgreen’s app/website for pi...
Sweetgreen Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Negative
The quarter showed clear operational and product positives (successful Wraps rollout, improving throughput and digital/loyalty momentum) and cost discipline in the support center, but these were outweighed by material top-line weakness, sharp margin compression and an adjusted EBITDA loss. Management highlighted improving trends into April and provided guidance that anticipates sequential recovery, but near-term financial results remain challenged and the GAAP net income improvement was driven by a one-time asset sale rather than core operations.Positive Updates
National Launch of Wraps with Strong Early Response
Wraps launched nationwide after a multi-month test across ~70 restaurants; test results showed incremental traffic, strong repeat behavior, lower-than-average guest complaints and ~85% positive social sentiment. Entry price points range from $10.45 to $14.95 and early marketing is one of the company's largest social campaigns to date.
Negative Updates
Significant Comparable Sales Decline
Revenue for Q1 was $161.5 million with comparable sales down 12.8% year-over-year; management cites weather headwinds and a difficult prior-year Ripple Fries comparison as contributors.
Read all updates
Q1-2026 Updates
Positive
Negative
National Launch of Wraps with Strong Early Response
Wraps launched nationwide after a multi-month test across ~70 restaurants; test results showed incremental traffic, strong repeat behavior, lower-than-average guest complaints and ~85% positive social sentiment. Entry price points range from $10.45 to $14.95 and early marketing is one of the company's largest social campaigns to date.
Read all positive updates
Company Guidance
Sweetgreen reiterated fiscal 2026 guidance and near‑term expectations: same‑store sales are expected to decline in the range of -4% to -2% for the year (Q2 expected to land around -4%), full‑year restaurant‑level margin is guided to 14.2%–14.7% and adjusted EBITDA to $1 million–$6 million; unit growth is now expected to be ≈13 net new restaurants (about 18 openings with a few lease‑related closures, nearly half featuring Infinite Kitchen). Near‑term cost assumptions include food, beverage & packaging roughly in line with Q1 (Q1 was 29% of revenue, +250 bps YoY) with transitory produce and fuel pressure, Q2 labor expected in the low‑29% range (Q1 labor was 31.4%, +250 bps YoY), and management is targeting ~40% flow‑through on incremental sales; they also plan loyalty changes (700 pts → $3, 1,200 → $5, 2,000 → free wrap) to drive frequency.Sweetgreen Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
62
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 674.69M | 679.47M | 676.83M | 584.04M | 470.11M | 339.87M |
| Gross Profit | 71.42M | 103.53M | 132.95M | 101.92M | 69.29M | 40.41M |
| EBITDA | -65.91M | -61.45M | -23.16M | -52.51M | -142.32M | -117.39M |
| Net Income | 16.78M | -134.06M | -90.37M | -113.38M | -190.44M | -153.18M |
Balance Sheet | ||||||
| Total Assets | 912.69M | 788.10M | 856.76M | 856.56M | 908.93M | 762.65M |
| Cash, Cash Equivalents and Short-Term Investments | 156.80M | 89.18M | 214.79M | 257.23M | 331.61M | 471.97M |
| Total Debt | 356.09M | 354.49M | 330.71M | 302.87M | 300.74M | 0.00 |
| Total Liabilities | 423.76M | 431.98M | 410.61M | 373.96M | 367.71M | 109.53M |
| Stockholders Equity | 488.93M | 356.13M | 446.14M | 482.60M | 541.23M | 653.12M |
Cash Flow | ||||||
| Free Cash Flow | -120.69M | -119.19M | -48.81M | -69.31M | -145.43M | -157.30M |
| Operating Cash Flow | -16.73M | -12.70M | 43.39M | 26.48M | -43.17M | -64.53M |
| Investing Cash Flow | -9.90M | -114.25M | -92.21M | -95.67M | -102.02M | -97.55M |
| Financing Cash Flow | 1.02M | 2.86M | 8.89M | -5.20M | 4.63M | 531.61M |
Sweetgreen Technical Analysis
Positive
6.87
Price Trends
6.45
Positive
6.38
Positive
7.03
Positive
Market Momentum
0.73
Negative
80.75
Negative
90.58
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 6.87 is below the 20-day moving average (MA) of 7.42, above the 50-day MA of 6.45, and below the 200-day MA of 7.03, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 80.75 is Negative, neither overbought nor oversold. The STOCH value of 90.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.67B | 22.05 | 28.21% | 1.63% | 10.25% | -3.61% | |
67 Neutral | $3.01B | 12.87 | 38.34% | 2.11% | 5.14% | 8.17% | |
63 Neutral | $9.47B | 120.20 | 7.92% | ― | 24.08% | -57.11% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $1.16B | 1.13 | 4.04% | ― | -1.55% | ― | |
51 Neutral | $2.69B | ― | 8.02% | ― | 16.22% | 228.81% | |
50 Neutral | $1.08B | 36.76 | -6.47% | 4.72% | -2.41% | -64.77% |
* Consumer Cyclical Sector Average
SG
Sweetgreen
9.78
-2.82
-22.38%
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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.