Goldman Sachs gave the salad stock a thumbs-down.Shares of Sweetgreen (SG 0.16%) were heading lower again this week as a broader sell-off in growth stocks and a reaffirmed sell rating from Goldman Sachs weighed on the struggling fast-casual salad chain. Even an upbeat report from Starbucks wasn't enough to give Sweetgreen a boost, and the fast-casual stock was down 15.1% for the week as of 2:05 p.m. ET, according to data from S&P Global Market Intelligence. Sweetgreen slides againThere was no major news out ...

Key Takeaways Chipotle is expanding its store base while improving kitchen efficiency and operational execution.CMG is using menu innovation and digital engagement to support traffic without heavy discounting.SG is grappling with traffic declines and margin pressure tied to weaker demand and higher costs.Chipotle Mexican Grill, Inc. (CMG) and Sweetgreen, Inc. (SG) represent two very different ways to play the fast-casual dining theme, making them a compelling head-to-head for investors. CMG brings the heft ...

Company Performance - Sweetgreen, Inc. (SG) closed at $6.66, reflecting a -6.98% change from the previous day, underperforming the S&P 500's 0.5% gain [1] - The stock has increased by 2.73% over the past month, which is below the Retail-Wholesale sector's gain of 5.24% but above the S&P 500's gain of 0.18% [1] Earnings Expectations - Analysts expect Sweetgreen, Inc. to report earnings of -$0.32 per share, representing a year-over-year decline of 28% [2] - The consensus estimate for revenue is $159.29 million, indicating a 1% decrease from the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of -$0.87 per share and revenue of $683.56 million, reflecting shifts of -10.13% and 0% respectively from the previous year [3] - Recent revisions to analyst forecasts for Sweetgreen, Inc. should be monitored as they may indicate changes in short-term business dynamics [3] Zacks Rank and Industry Position - Sweetgreen, Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 3.6% over the past month [5] - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 202, placing it in the bottom 18% of over 250 industries [6]

Core Viewpoint - Sweetgreen's stock has significantly declined, raising questions about whether it presents a buying opportunity or should be avoided by investors [1][2]. Company Overview - Sweetgreen focuses on healthy food in the fast-casual restaurant sector, emphasizing health and sustainability while incorporating automation to reduce costs [1][2]. - The company has plans to open 37 new restaurants by 2025, increasing its total to 266 by the end of Q3 2025 [3]. Financial Performance - Revenue for the first nine months of fiscal 2025 grew by 2% to $524 million, but same-store sales dropped by 7% during the same period [3]. - Operating expenses have increased, leading to a net loss of $84 million in the first three quarters of 2025, up from $61 million in the same period the previous year [4]. Strategic Adjustments - In response to financial struggles, Sweetgreen has reduced its new restaurant growth plans to 20 locations in 2026 [5]. - The company holds $130 million in cash and expects to gain an additional $100 million from selling its automation unit, Spyce, which may provide time for a turnaround [5]. Market Position - Sweetgreen's stock has experienced a nearly 80% decline over the past year, resulting in a price-to-sales (P/S) ratio of 1.2, significantly lower than competitors like Chipotle (4.5) and Cava (7.2) [5][7]. - The low P/S ratio may attract risk-tolerant investors, but the lack of profitability raises concerns about the stock's potential for recovery [9].

Core Insights - Sweetgreen has experienced significant stock volatility since its IPO in November 2021, with shares dropping 74% in the first year, then rising 236% until late November 2024, and currently trading 85% below its all-time high as of January 16 [1] Company Overview - Sweetgreen has successfully carved out a niche in the competitive fast-casual restaurant sector by focusing on healthy salads and bowls [3] - The company is expanding rapidly, having opened 25 net new stores in fiscal 2024, with plans for 37 net new locations in fiscal 2025 and 15 to 20 in fiscal 2026, indicating potential for higher revenue in the future [4] Technological Innovation - Sweetgreen is leveraging technology to enhance operations, particularly through its Infinite Kitchen robotic machine, which automates order preparation, aiming to improve throughput and operational efficiencies [5] Market Conditions - The broader macroeconomic environment presents challenges, with U.S. GDP growing by 4.3% in Q3, yet consumer spending is tightening, negatively impacting restaurants like Sweetgreen [6] - In Q3, Sweetgreen reported an 11.7% decline in foot traffic, leading to a 9.5% drop in same-store sales (SSS), with management forecasting a further SSS decline of 7.7% to 8.5% for fiscal 2025 [7] Competitive Position - Sweetgreen operates with a relatively small footprint of 266 stores, which limits brand recognition and cost advantages, contributing to ongoing net losses [8]

These stocks plummeted nearly 80% last year.Inflation has made eating out much more challenging for consumers to afford a decent meal while keeping their budgets intact. Trying to eat healthy is even more difficult, as paying for fresh ingredients can raise prices further.It may not come as much surprise, then, to learn that two companies that have focused on healthy eating alternatives have performed so poorly last year. In 2025, shares of Sweetgreen (SG 12.30%) and Beyond Meat (BYND 6.03%) were both down ...

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Chris Tarrant is leaving his role as Sweetgreen’s chief development officer. His departure, originally reported by Bloomberg, was confirmed by the company, which shared in an email to Nation’s Restaurant News that he will remain with the company through the end of January to support a smooth transition.  “We're grateful for his contributions and are actively advancing a succession plan with a strong slate of candid ...

Sweetgreen chief development officer Chris Tarrant will leave the US-based fast-casual salad chain later this month, according to a Bloomberg report. A Sweetgreen spokesperson told the publication that the decision is due to personal reasons and did not share additional information. The source added that Tarrant will stay on through the end of January to support the handover of responsibilities. Tarrant joined Sweetgreen in 2024 from dessert brand Nothing Bundt Cakes. He previously held development role ...

Group 1 - Chipotle Mexican Grill is positioned as a leading player in the fast-casual dining sector, competing with Sweetgreen, which focuses on health-conscious salads and bowls [1] - Chipotle is considered a better long-term investment due to its attractive valuation with a price-to-earnings ratio of 35.7 and strong brand recognition [2] - Despite recent challenges, Chipotle's operating margin was reported at 15.9% for Q3 2025, and the company continues to open new locations, indicating future revenue growth [4] Group 2 - Sweetgreen is forecasted to experience a same-store sales decline of 8.1% in fiscal 2025, while Chipotle's decline is expected to be in the low single digits [3] - Chipotle's brand strength and scale provide significant growth potential, making it a more favorable investment compared to Sweetgreen, which is currently not profitable [6]

Core Insights - A growing trend among restaurants is the incorporation of higher protein options in their menus as more Americans seek healthier diets [1][4] - Subway has introduced new Protein Pockets, each containing over 20 grams of protein and priced under $4, as part of its strategy to cater to this demand [1][2] - The trend towards higher protein meals is being accelerated by weight-loss drugs and a shift in dietary guidelines promoting protein consumption [4] Company-Specific Developments - Subway is enhancing its value menu with daily "Sub of the Day" specials that focus on protein-rich options [5] - Starbucks has launched Protein Cold Foam and a new line of protein lattes, containing 15 to 36 grams of protein per 16-ounce beverage, as part of its menu modernization efforts [6][8] - Sweetgreen has introduced a Protein Max Bowl with 106 grams of protein and increased portion sizes for chicken and tofu by 25% without raising prices [11] - Sweetgreen's app now features a macronutrient calculator, providing transparency on protein, carbohydrates, and fats in menu items [11] - Cava plans to expand its protein offerings, including new items like roasted salmon, in response to customer preferences for premium protein options [12][14] Industry Trends - The shift towards higher protein consumption is influenced by changing consumer behaviors, including the impact of GLP-1 drugs on appetite and food choices [17] - Companies like Rä Foods are focusing on not just increasing protein but also enhancing nutrient quality and bioavailability in their products [17]