These two small-cap stocks look poised for a recovery heading into 2026.With only a couple of weeks left in 2025, the stock market looks set to close out another winning year. Through Dec. 16, the S&P 500 is up 15.7%, on the way to its third straight year of double-digit gains.Nobody knows for sure where the market is headed in 2026. Some investors see an AI bubble. Others believe the gains that have been dominated by the "Magnificent Seven" stocks will spread to the rest of the market, and some have argued ...

What is your go to lunch. I was once a frequent buyer of the common office lunch known as the sad desk salad, now lumped into the larger category called slop bowls. Despite the name, these healthy salads and grain bowls, topped with a variety of freshly prepared vegetables and proteins from places like Cava, Sweetgreen and Chipotle, they can easily cost $15 or more as a result.Many customers, including myself, have stopped buying them as much, and companies are feeling the sting in its most recent quarterly ...

Key Takeaways CAVA stands out among fast-casual peers for 2026 with disciplined expansion and attractive unit economics.BROS leverages a drive-thru, beverage-led model with cult appeal and a long U.S. runway for expansion.WING franchised, digital-first growth faces traffic sensitivity, making normalization key to a 2026 breakout.As investors look toward 2026, fast-casual dining is expected to remain one of the most attractive growth areas within the restaurant industry. This segment offers a good mix of aff ...

2025 was a disaster for the fast-casual salad chain, but a new year brings a chance for a turnaround.Sweetgreen (SG +1.45%) has been one of the biggest disappointments of 2025.The stock came into this year on solid footing after putting up strong same-store sales growth in 2024 and rolling out its automated Infinite Kitchen system, which helps prep and dispense ingredients, accelerating throughput and saving money on labor.However, things quickly took a turn for the worse as the year started. The Southern C ...

Chipotle Mexigan Grill logo positioned amid popular ingredients. Key Points As consumer confidence fades, fast-casual restaurants are missing earnings as customers seek out more budget-friendly options. Chipotle, Sweetgreen, and Cava have seen their stocks fall by 48%, 82%, and 60%, respectively, over the past year. In the company’s Q3 earnings call, Chipotle’s CEO blamed “persistent macroeconomic pressures” but did not address the company’s runaway prices. Interested in Chipotle Mexican Grill, Inc.? ...

Core Viewpoint - Sweetgreen's stock performance has been volatile since its IPO in 2021, reflecting both market conditions and internal operational challenges [1][6]. Company Performance - Sweetgreen operates 140 stores focused on premium, fresh ingredients, primarily located on the U.S. coasts [3]. - The company has faced significant challenges, reporting a 9.5% decrease in comparable sales year-over-year in the third quarter and an expanding operating loss [4]. - Management acknowledged operational issues, revealing that only one-third of restaurants met operational standards in Q2 2025, which has since improved to 60% by the end of Q3 [5]. Stock Performance - The stock has shown inconsistent performance, with investment losses of 84% over one year, 47% over three years, and 86% since the IPO closing [6]. - Depending on the timing of investment, returns could vary significantly, with potential gains if bought at lows in 2023 and sold at highs in 2024 [6]. Future Outlook - The future of Sweetgreen appears uncertain due to both external headwinds and internal operational issues, with no clear signs of significant improvement in the near term [7]. - While there is a long-term investment thesis, the lack of confidence in a turnaround is noted, especially given the competitive landscape and the need for more efficient operations [8][9].

Core Insights - Sweetgreen has experienced a significant decline in traffic during 2025, which has adversely affected the company's revenue [1] Company Performance - The decline in traffic has been a persistent challenge for Sweetgreen, leading to reduced revenue [1]

Core Viewpoint - Sweetgreen, a salad restaurant chain, is in urgent need of a turnaround as its stock has plummeted over 90% from its all-time high, despite having strong consumer demand for its products [1][2][10]. Financial Performance - Sweetgreen has average unit volumes (AUV) of $2.8 million per location annually, indicating strong sales potential [2]. - The company reported a net loss of $89 million on a trailing-12-month basis, highlighting its struggle to achieve profitability [2]. - The stock is currently valued at a price-to-sales (P/S) ratio of less than 1, reflecting investor skepticism about its ability to become profitable [10]. Sales and Growth Strategy - Management anticipates a decline in same-store sales of approximately 8% year-over-year in 2025, indicating challenges in maintaining sales momentum [4]. - Sweetgreen plans to open only up to 20 new locations in 2026, representing a single-digit growth rate, as it focuses on improving operations rather than rapid expansion [12]. Cost Management and Automation - The company is investing in automation to reduce expenses, but the initiative has not yet yielded significant profit improvements, leading to the sale of its automation unit, Spyce [5][8]. - Despite selling the automation business, Sweetgreen retains rights to the technology, which remains central to its operational strategy [13][14]. Operational Challenges - Two-thirds of Sweetgreen's restaurants faced operational issues last quarter, but this has improved to 40%, indicating ongoing challenges that need to be addressed before scaling [11]. - Profit margins at locations utilizing automation technology have only improved by about 800 basis points, which is insufficient given the company's negative 21% profit margin [15]. Future Outlook - Sweetgreen has a cash position of over $200 million, providing it with the runway needed to implement changes and invest in necessary areas [8][9]. - While there is potential for recovery, the company faces a long and challenging path to profitability, necessitating careful monitoring of its progress [16].

Core Insights - The end of the federal government shutdown is seen as a potential catalyst for Sweetgreen's stock recovery, with analysts suggesting a possible "short-covering rally" due to low expectations and improving sales data [2] Company Overview - Sweetgreen is a fast-casual restaurant brand focused on salads and bowls made from scratch using quality ingredients sourced from local farms, with over 250 stores across 24 states and Washington, D.C. [4] - The company emphasizes efficient supply chains, real-time digital ordering, sustainability, and community engagement, utilizing automated kitchens and flexible menus to enhance productivity [5] Financial Performance - Sweetgreen's stock has experienced a significant decline of 83% over the past 52 weeks and 62% over the last six months, with a recent low of $5.14 [6] - The company's third-quarter revenue for fiscal 2025 was reported at $172.39 million, which was below Wall Street's estimate of $177.90 million [8] - Sweetgreen's price-to-sales (P/S) ratio stands at 0.92, slightly above the industry average of 0.91, indicating that the stock may be undervalued [7]

Core Insights - Sweetgreen is experiencing a significant decline in stock performance, with shares down 83% year-to-date and 88% from its peak last November [1][2] - The company faces multiple challenges, including sector-level headwinds and a slowdown in consumer spending, particularly among younger demographics [4][6] - Despite recent improvements in same-store sales and revenue growth, Sweetgreen's overall performance has deteriorated significantly in 2025 [3][7] Financial Performance - In 2024, Sweetgreen reported a 6% increase in same-store sales and a 16% rise in revenue to $676.8 million, with a GAAP net loss narrowing by 20% to $90.4 million [3] - For 2025, revenue decreased by 0.6% to $172.4 million, with average unit volumes falling from $2.9 million to $2.8 million and restaurant-level profit margin dropping from 20.1% to 13.1% [8] - The GAAP net loss nearly doubled from $20.8 million to $36.1 million, indicating a significant decline in financial health [8] Challenges and Strategic Moves - Sweetgreen is facing challenges such as a transition in its loyalty program, rising protein costs, and increased food and packaging expenses [4][9] - The company announced the sale of its subsidiary Spyce for $186.4 million, which will help strengthen its balance sheet and reduce operating expenses [11][12] - Sweetgreen plans to scale back new restaurant openings to 15-20 in the upcoming year to conserve resources and improve margins [12] Market Outlook - The current downturn in consumer spending is seen as a short-term challenge, but the company needs to demonstrate progress to attract investors [13] - A focus on improving margins and returning to comparable sales growth will be critical for Sweetgreen's recovery [14] - Comparisons will be easier in the following year, potentially favoring a rebound for the company [14]