UBS analyst Dennis Geiger initiated coverage of Sweetgreen with a Buy rating and $31 price target. UBS believes Sweetgreen can generate 15%+ revenue growth over the next three years, consisting of 4% average same-store sales and a 15% unit compound annual growth rate, and reach over 6% EBITDA margins by 2026, the analyst tells investors in a research note. The firm expects strategic plans across kitchen automation, loyalty and menu innovation should support comp and EBITDA margin expansion over the coming years while key menu attributes are a core competitive advantage.
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