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Sweetgreen (SG) AI Stock Analysis

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Sweetgreen

(NYSE:SG)

Select Model

Neutral 53 (OpenAI - Gpt-5.6Sol)

Rating:53Neutral

Price Target:

$10.50

▲(53.28% Upside)

Action:Reiterated

Date:10/03/26

Overall score reflects improving profitability and a reasonably supportive balance sheet, but is held back most by negative operating/free cash flow and still-negative operating profitability. Technicals are constructive but overbought, while valuation is expensive (high P/E) and the latest guidance points to near-term comp and EBITDA headwinds tied to public-health disruptions.

Positive Factors

Revenue scale and improving net income

The substantial expansion in revenue demonstrates that Sweetgreen has built meaningful operating scale, while the recent return to positive net income marks progress from prior losses. If maintained, this combination can support reinvestment and improve the foundation for future profitability.

Negative Factors

Persistent negative cash generation

Negative operating and free cash flow show that recent net income has not yet translated into durable cash generation. Continued cash burn can constrain self-funded expansion, increase dependence on the balance sheet, and make the business more vulnerable if operating recovery takes longer.

Read all positive and negative factors

Positive Factors

Negative Factors

Revenue scale and improving net income

Read all positive factors

Sweetgreen Key Performance Indicators (KPIs)

Any

Restaurant Count

Restaurant Count
Counts the total number of restaurant locations, signaling the company's expansion strategy and market penetration.

Chart InsightsAfter multi-year expansion, management is deliberately dialing back unit growth and shifting openings toward higher-return Infinity Kitchen formats with development weighted to the back half of the year, prioritizing unit economics amid weak traffic and margin pressure; this should help restaurant-level profitability if IK AUV and labor savings replicate at scale, but it also slows scale-driven revenue upside and makes new-unit productivity and comp recovery the critical near-term execution risks.

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Sweetgreen (SG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.18B

Dividend YieldN/A

Average Volume (3M)4.96M

Price to Earnings (P/E)89.8

Beta (1Y)1.64

Revenue Growth-0.65%

EPS GrowthN/A

CountryUS

Employees6,486

SectorConsumer Cyclical

Sector Strength84

IndustryRestaurants

Share Statistics

EPS (TTM)0.11

Shares Outstanding107,147,760

10 Day Avg. Volume4,371,256

30 Day Avg. Volume4,955,648

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 Cap1.10

Enterprise Value/Revenue1.91

Enterprise Value/Gross Profit21.14

Enterprise Value/Ebitda14.48

Forecast

1Y Price Target

$9.50

Price Target Upside38.69% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

EPS Forecast (FY)-0.31

Revenue Forecast (FY)$685.17M

Sweetgreen Business Overview & Revenue Model

Company Description

Sweetgreen, Inc. operates a chain of fast-casual restaurants that focus on serving nutritious meals prepared with fresh, seasonal, and organic ingredients. Beyond the in-restaurant dining experience, the company allows customers to place orders di...

Sweetgreen Earnings Call Summary

Earnings Call Date:Aug 06, 2026

(Q2-2026)

% Change Since: |

Next Earnings Date:Nov 05, 2026

Earnings Call Sentiment Negative

The call described meaningful operational and product progress — sequential transaction improvement, a successful wraps platform that increased frequency and engagement, digital and loyalty momentum, and reductions in support-center costs — but these positives were offset by sizable near-term financial headwinds: Q2 comparable sales declined 6.2%, restaurant-level margin contracted sharply (to 13.1% from 18.9%), adjusted EBITDA swung to a loss and the company revised FY guidance to meaningfully negative EBITDA and comps declines. Management emphasized disciplined actions and a conservative development approach, but public-health disruptions (cyclospora and a jalapeño recall), mix-related check drag from new lower-price offerings and cost pressures create material near-term challenges.

Positive Updates

Revenue Growth

Total revenue of $192.7 million in Q2, an increase of approximately 4% year-over-year.

Negative Updates

Comparable Restaurant Sales Decline

Comparable restaurant sales declined 6.2% in Q2; full-year guidance updated to a comparable sales decline of 8% to 7% driven in part by an assumed 600–700 basis point impact to Q3 from the cyclospora headlines.

Read all updates

Q2-2026 Updates

Positive

Negative

Revenue Growth

Total revenue of $192.7 million in Q2, an increase of approximately 4% year-over-year.

Read all positive updates

Company Guidance

Sweetgreen updated its fiscal 2026 guidance reflecting the cyclospora disruption: full‑year comparable restaurant sales are now expected to decline 8%–7%, restaurant‑level profit margin is guided to 10.5%–11%, and adjusted EBITDA to a loss of $27M–$23M; the company assumes a continued 600–700 basis‑point hit to Q3 comps (July impact ≈600 bps), and within the guidance estimates the disruption accounts for roughly 200–300 bps of comparable‑sales pressure, 100–150 bps of restaurant‑level margin pressure and $7M–$10M of EBITDA impact. For context the company reported Q2 revenue of $192.7M, comps down 6.2% (transactions −2%, mix −4.2%), Q2 restaurant‑level margin 13.1%, adjusted EBITDA loss $0.2M, 287 restaurants, and $142.6M in cash, which informed the updated, conservative recovery scenarios.

Sweetgreen Financial Statement Overview

Summary

Mixed fundamentals: revenue scaled materially over several years and net income turned positive in the TTM (~2% net margin), while leverage is moderate (debt-to-equity ~0.76) and improving. However, unit economics and cash generation remain weak—TTM gross margin is low (~9%), EBIT is still negative, and both operating cash flow (~-$28M) and free cash flow (~-$116M) are negative, indicating ongoing cash burn.

Income Statement

Neutral

Balance Sheet

Positive

Cash Flow

Negative

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	681.77M	679.47M	676.83M	584.04M	470.11M	339.87M
Gross Profit	61.47M	103.53M	132.95M	101.92M	69.29M	40.41M
EBITDA	89.77M	-62.46M	-23.16M	-52.51M	-142.32M	-117.39M
Net Income	13.67M	-134.06M	-90.37M	-113.38M	-190.44M	-153.18M
Balance Sheet
Total Assets	895.66M	788.10M	856.76M	856.56M	908.93M	762.65M
Cash, Cash Equivalents and Short-Term Investments	142.63M	89.18M	214.79M	257.23M	331.61M	471.97M
Total Debt	355.39M	354.49M	330.71M	302.87M	300.74M	0.00
Total Liabilities	428.04M	431.98M	410.61M	373.96M	367.71M	109.53M
Stockholders Equity	467.62M	356.13M	446.14M	482.60M	541.23M	653.12M
Cash Flow
Free Cash Flow	-116.32M	-119.19M	-48.81M	-69.31M	-145.43M	-157.30M
Operating Cash Flow	-27.64M	-12.70M	43.39M	26.48M	-43.17M	-64.53M
Investing Cash Flow	3.96M	-114.25M	-92.21M	-95.67M	-102.02M	-97.55M
Financing Cash Flow	-188.00K	2.86M	8.89M	-5.20M	4.63M	531.61M

Sweetgreen Technical Analysis

Technical Analysis Sentiment

Positive

Last Price6.85

Price Trends

50DMA

8.07

Positive

100DMA

7.72

Positive

200DMA

7.13

Positive

Market Momentum

MACD

0.61

Positive

RSI

59.62

Neutral

STOCH

32.07

Neutral

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 6.85 is below the 20-day moving average (MA) of 9.68, below the 50-day MA of 8.07, and below the 200-day MA of 7.13, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 59.62 is Neutral, neither overbought nor oversold. The STOCH value of 32.07 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	73 Outperform	$35.95B	26.06	53.26%	―	7.31%	-4.37%
CAVA	65 Neutral	$6.02B	90.02	8.28%	―	26.79%	-53.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	60 Neutral	$2.78B	66.03	7.55%	―	17.33%	99.39%
SG	53 Neutral	$1.18B	89.82	3.21%	―	-0.65%	―
FWRG	52 Neutral	$682.54M	37.47	2.85%	―	19.27%	332.49%
NDLS	46 Neutral	$80.07M	-3.35	50.91%	―	0.19%	46.85%

* Consumer Cyclical Sector Average

Performance Comparison

Sweetgreen

9.88

2.91

41.75%

CMG

Chipotle

28.41

-11.85

-29.43%

NDLS

Noodles & Co

13.42

7.32

119.86%

SHAK

Shake Shack

64.89

-26.29

-28.83%

FWRG

First Watch Restaurant Group

11.06

-6.63

-37.48%

CAVA

CAVA Group, Inc.

51.53

-10.61

-17.07%

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.Date of analysis: Oct 03, 2026