Core Viewpoint - Sweetgreen, Inc. reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, marking a 19.05% earnings surprise [1] - The company has struggled to meet consensus EPS estimates over the last four quarters, with revenues of $160.9 million for the quarter ended December 2024, missing the estimate by 0.83% [2] Financial Performance - The loss per share of $0.25 compares to a loss of $0.24 per share a year ago, indicating a slight deterioration [1] - Sweetgreen's revenues increased from $153.03 million a year ago to $160.9 million, showing a year-over-year growth [2] Stock Performance - Sweetgreen shares have declined approximately 30.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for Sweetgreen is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $179.49 million, and for the current fiscal year, it is -$0.49 on revenues of $787.54 million [7] - The trend of estimate revisions for Sweetgreen is mixed, which could change following the recent earnings report [6] Industry Context - The Retail - Restaurants industry, to which Sweetgreen belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenue for Q4 2024 was $160.9 million, a 5% increase from $153.0 million in Q4 2023[3] - For fiscal year 2024, total revenue reached $676.8 million, a 16% increase from $584.0 million in fiscal year 2023[3] - Revenue for the fiscal year ended December 29, 2024, was $676.8 million, a 15.9% increase from $584.0 million in the previous year[32] - Adjusted EBITDA for Q4 2024 was $(0.6) million, an improvement from $(1.8) million in the prior year[3] - Adjusted EBITDA for the fiscal year 2024 was $18,708,000, a significant improvement from a loss of $2,795,000 in fiscal year 2023[45] - Net loss for Q4 2024 was $(29.0) million, consistent with a net loss margin of (18)%[3] - Net loss for the fiscal year ended December 29, 2024, was $90.4 million, compared to a net loss of $113.4 million in the previous year, representing a 20.3% improvement[32] - Net loss for the fiscal year ended December 29, 2024, was $90,373,000, an improvement from a net loss of $113,384,000 in the previous year, representing a 20.2% reduction[35] Restaurant Operations - Same-Store Sales Change was 4%, compared to 6% in the prior year period[3] - Restaurant-Level Profit was $28.0 million with a margin of 17%, up from $24.8 million and 16% in the prior year[3] - Restaurant operating costs as a percentage of revenue decreased from 83% in the previous year to 80% in the current year[32] - Restaurant-Level Profit for the fiscal year 2024 was $132,949,000, compared to $101,920,000 in fiscal year 2023, reflecting a 30.5% increase[42] - Average Unit Volume (AUV) for the fiscal year 2024 was $2,924, unchanged from the previous year, while Same-Store Sales increased by 6%[37] Future Outlook - The company plans to open at least 40 new restaurants in fiscal year 2025, including 20 featuring the Infinite Kitchen[9] - Revenue guidance for fiscal year 2025 is projected between $760 million and $780 million[9] - Restaurant-Level Profit Margin for Q1 2025 is expected to be between 19.8% and 20.5%[9] - Adjusted EBITDA for Q1 2025 is anticipated to be between $32 million and $38 million[9] Assets and Liabilities - Total current assets decreased to $234.5 million from $276.1 million year-over-year[27] - Total liabilities increased to $410.6 million from $374.0 million year-over-year[27] - Cash and cash equivalents decreased to $214.8 million from $257.2 million year-over-year[27] - Cash and cash equivalents at the end of the fiscal year 2024 were $217,429,000, a decrease from $257,355,000 at the end of fiscal year 2023[35] Expenses - General and administrative expenses for the fiscal year were $149.9 million, representing 22% of total revenue, compared to 25% in the previous year[32] - The company incurred $1,830,000 in impairment and closure costs during the fiscal quarter ended December 29, 2024[42] Digital Revenue - Total Digital Revenue Percentage for the fiscal year 2024 was 56%, a decrease from 59% in fiscal year 2023[37] Share Information - The weighted average shares used in computing net loss per share increased to 114.3 million from 111.9 million year-over-year[32]

The latest trading session saw Sweetgreen, Inc. (SG) ending at $23.48, denoting a +0.99% adjustment from its last day's close. This change outpaced the S&P 500's 0.43% loss on the day. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.The the stock of company has fallen by 20.19% in the past month, lagging the Retail-Wholesale sector's gain of 5.51% and the S&P 500's gain of 2.6%.The investment community will be closely monitoring the performance of ...

Company Performance - Sweetgreen, Inc. (SG) closed at $33.05, with a daily increase of +0.46%, outperforming the S&P 500's gain of 0.39% [1] - Over the past month, shares of Sweetgreen have appreciated by 3.01%, underperforming the Retail-Wholesale sector's gain of 8.29% but outperforming the S&P 500's gain of 1.7% [1] Upcoming Earnings - Sweetgreen is set to disclose its earnings on February 26, 2025, with a forecasted EPS of -$0.21, reflecting a 12.5% increase from the same quarter last year [2] - The consensus estimate for revenue is $162.38 million, which represents a 6.11% increase from the prior-year quarter [2] Analyst Estimates - Recent changes to analyst estimates for Sweetgreen indicate shifting short-term business dynamics, with positive revisions suggesting a favorable business outlook [3] - The Zacks Rank system, which incorporates these estimate changes, provides a practical rating system for stocks [4] Zacks Rank and Industry Performance - Sweetgreen currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.41% over the last 30 days [5] - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 50, placing it in the top 20% of over 250 industries [6]

Core Viewpoint - Sweetgreen, Inc. (SG) shows potential for upside with a mean price target of $41.30, indicating a 25.5% increase from the current price of $32.90 [1] Price Target Analysis - The average price target consists of 10 estimates ranging from $28 to $49, with a standard deviation of $5.76, suggesting variability in analyst opinions [2] - The lowest estimate indicates a potential decline of 14.9%, while the highest suggests a 48.9% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts are increasingly optimistic about SG's earnings prospects, as evidenced by upward revisions in EPS estimates [9] - The Zacks Consensus Estimate for the current year has increased by 0.4% due to one upward revision and no negative revisions in the last 30 days [10] - SG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Price targets should not be the sole basis for investment decisions, as they can often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Company Performance - Sweetgreen, Inc. closed at $33.65, reflecting a -0.18% change from the previous day, underperforming the S&P 500 which gained 0.53% [1] - Over the past month, Sweetgreen's shares appreciated by 5.15%, which is lower than the Retail-Wholesale sector's gain of 5.57% but higher than the S&P 500's gain of 1.24% [1] Upcoming Earnings - Sweetgreen is set to release its earnings report on February 26, 2025, with analysts expecting earnings of -$0.21 per share, indicating a year-over-year growth of 12.5% [2] - The consensus estimate for revenue is $162.38 million, reflecting a 6.11% growth compared to the same quarter last year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Sweetgreen are important as they reflect short-term business trends, with positive changes indicating optimism regarding the company's business and profitability [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [5] - Sweetgreen currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.41% in the past month [5] Industry Context - Sweetgreen operates within the Retail - Restaurants industry, which has a Zacks Industry Rank of 46, placing it in the top 19% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for Sweetgreen within its industry [6]

Core Viewpoint - Sweetgreen's stock experienced a decline of over 10% following a price target cut by Morgan Stanley analyst Brian Harbour, reflecting broader concerns about the U.S. restaurant industry's growth prospects [1][2][3] Company Summary - Morgan Stanley reduced Sweetgreen's price target from $32 to $28 per share while maintaining an equal weight recommendation, indicating a hold stance on the stock [2] - The decline in price target is attributed to Harbour's cautious outlook on the U.S. restaurant industry, expecting growth to be less than 5% in 2024, compared to a 4% increase in the previous year [3] - Sweetgreen's stock had a remarkable performance in 2024, more than tripling in value, driven by excitement around its Infinite Kitchen model, which focuses on automating salad preparation [4] Industry Summary - The overall sentiment in the restaurant sector appears cautious, with analysts predicting a sluggish rebound for the industry [3] - Sweetgreen is heavily investing in its Infinite Kitchen initiative, which has seen a rapid increase in the number of kitchens equipped with robotic salad chefs, growing from two to five within a short period [5] - The automation initiative is expected to significantly reduce labor costs, making it a noteworthy development for the company's future [6]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Sweetgreen, Inc. (SG), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4][9]. Brokerage Recommendations - Sweetgreen has an average brokerage recommendation (ABR) of 1.75, indicating a consensus between Strong Buy and Buy, based on recommendations from 12 brokerage firms [2]. - Out of the 12 recommendations, seven are classified as Strong Buy and one as Buy, which accounts for 58.3% and 8.3% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - The article highlights that brokerage recommendations may not be reliable indicators of stock performance due to analysts' biases stemming from their firms' vested interests [5][9]. - Research indicates that brokerage firms issue five "Strong Buy" recommendations for every "Strong Sell," suggesting a tendency towards overly optimistic ratings [5]. Zacks Rank as an Alternative - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [11]. Sweetgreen's Earnings Estimates - The Zacks Consensus Estimate for Sweetgreen has increased by 0.4% over the past month to -$0.74, reflecting growing optimism among analysts regarding the company's earnings prospects [12]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank of 2 (Buy) for Sweetgreen, suggesting potential for stock appreciation [13].

Company Performance - Sweetgreen, Inc. (SG) closed at $33, reflecting a +0.79% change from the previous trading day's closing, which lagged behind the S&P 500's daily gain of 1.83% [1] - The company's stock has decreased by 8.75% over the past month, underperforming the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31% [1] Earnings Report Expectations - The upcoming earnings report for Sweetgreen, Inc. is anticipated to show an EPS of -$0.21, representing a 12.5% increase compared to the same quarter of the previous year [2] - Revenue is expected to reach $162.51 million, which is a 6.2% increase from the prior-year quarter [2] Analyst Estimates and Rankings - Recent changes to analyst estimates for Sweetgreen, Inc. are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Sweetgreen, Inc. at 3 (Hold) [5] - The Zacks Consensus EPS estimate has remained steady over the past month [5] Industry Context - Sweetgreen, Inc. operates within the Retail - Restaurants industry, which has a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [6] - The Zacks Industry Rank measures the strength of individual industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Investment Thesis - Sweetgreen (NYSE: SG) is reiterated with a buy rating due to new evidence suggesting potential for accelerated growth despite a recent drop in share price [1] Analyst Background - The analyst is an individual investor with a diverse investing background, including fundamental, technical, and momentum investing approaches [1] - The analyst uses Seeking Alpha as a platform to track investment ideas and connect with like-minded investors [1] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2] - Seeking Alpha's disclosure states that past performance is no guarantee of future results and no investment advice is being given [3] - Seeking Alpha analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any regulatory body [3]