Sweetgreen, Inc.
$7.69
-9.3%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -6.8).
Valuation inputs: P/E -6.8, earnings yield N/A, momentum -9.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -37.6%, ROIC -15.7%).
Profitability stack: net margin -19.7%, ROE -37.6%, ROIC -15.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +54.8%, momentum -9.3%, net margin -19.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Sweetgreen, Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Strong earnings growth indicates robust business expansion and improving profitability.
Price-EPS Relationship
Earnings are growing but price is falling—potential undervaluation opportunity if growth continues.
Stock Price Change
Over the 1Y period, stock price has decreased by 48.0%.
P/E Ratio (TTM)
Relatively low P/E may indicate undervaluation or lower growth expectations.
Key Insight
Strong earnings growth (+115.5%) is outpacing price appreciation (+-48.0%), potentially indicating an attractive entry point as the market may not have fully recognized the improving fundamentals.
Sweetgreen, Inc. Fair Value Envelope
Sweetgreen, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Sweetgreen, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Sweetgreen, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Sweetgreen, Inc. Street Expectations Map
Wall Street analysts project that SG stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 7.20, with estimates ranging from a low of 5.60 to a high of 9.00.
The consensus 1-year price target stands at 7.20, with estimates ranging from a low of 5.60 to a high of 9.00.
Analyst Consensus Analysis
Upside Potential
Downside risk. Current price above analyst targets indicates potential overvaluation. Exercise caution and review catalysts.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Sweetgreen, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.46M worth of SG shares, with no selling activity reported.
3 Months
16.6K
132.28K
0
0.00
+132K
+$132K
3-6 Months
4.4K
25.28K
0
0.00
+25K
+$25K
6-9 Months
309.0K
2.30M
0
0.00
+2.3M
+$2.30M
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Mcconnell Jamie
Officer: Chief Financial Officer
$2.26M
Cochran Jason Miles
Officer: Chief Operating Officer
$120K
Jammet Nicolas
Director, Officer: Chief Concept Officer
$75K
Goldman Sachs Group Inc
10 Percent Owner
$912
Top Sellers
No selling activity
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $2.46M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Perfect buy/sell ratio. Only buying activity with zero selling—the most bullish possible insider signal.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
4 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
No Dividend Yield Data
SG has not reported any dividend yield values in the available annual periods.
sg Dividend History
Learning Layer
Related Guides
Build conviction on SG by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.