Core Viewpoint - Sweetgreen has experienced significant stock price decline, down 74% in 2025, indicating a loss of investor confidence in the business [1] Group 1: Financial Performance - Sweetgreen reported a 7.6% year-over-year decline in same-store sales (SSS) for Q2, a critical metric for restaurant investors [3] - The company posted an operating loss of $26.4 million during Q2, highlighting its lack of profitability [4] - Management anticipates a 5% decline in SSS for the full fiscal year of 2025, suggesting ongoing challenges [4] Group 2: Market Position and Strategy - Sweetgreen follows the fast-casual model established by Chipotle Mexican Grill, focusing on healthy food options [2] - Despite trading at a historically low price-to-sales ratio of 1.4, the company is still considered a risky investment due to its financial struggles [5]

Company Performance - Sweetgreen, Inc. (SG) shares decreased by 1.6% to $8.02, underperforming the S&P 500's gain of 0.26% on the same day [1] - Over the past month, Sweetgreen's shares have declined by 10.44%, while the Retail-Wholesale sector gained 0.76% and the S&P 500 increased by 2.87% [1] Earnings Forecast - Sweetgreen is projected to report earnings of -$0.16 per share, reflecting a year-over-year growth of 11.11% [2] - The consensus estimate for revenue is $183.58 million, indicating a 5.85% growth compared to the same quarter last year [2] Full-Year Estimates - The Zacks Consensus Estimates for Sweetgreen's full-year earnings are -$0.71 per share and revenue of $713.85 million, representing year-over-year changes of +10.13% and +5.47%, respectively [3] - Recent changes in analyst estimates suggest a positive outlook on business performance and profit potential [3] Analyst Ratings - The Zacks Rank system, which assesses estimate changes, currently ranks Sweetgreen at 4 (Sell) [5] - Over the past month, the Zacks Consensus EPS estimate has decreased by 4.48% [5] Industry Context - Sweetgreen operates within the Retail - Restaurants industry, which currently holds a Zacks Industry Rank of 193, placing it in the bottom 22% of all industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a challenging environment for Sweetgreen [6]

Market Overview - The U.S. equity market experienced a significant recovery in Q2 2025, rising 23% from its low to end the quarter at a record high [1] - U.S. large-cap stocks gained 11.1% during the quarter, with growth stocks outperforming value stocks [1] - The Meridian Contrarian Fund returned 16.42% (net) in the quarter, surpassing the Russell 2500 Index's return of 8.59% and the Russell 2500 Value Index's return of 7.29% [1] Company Focus: Sweetgreen, Inc. - Sweetgreen, Inc. operates fast-casual restaurants in the U.S. that focus on healthy food and beverages [2][3] - The stock of Sweetgreen, Inc. had a one-month return of -10.22% and a 52-week loss of 77.27%, closing at $8.17 per share with a market capitalization of $965.791 million on September 25, 2025 [2] - The company is investing in automation through its "Infinite Kitchen" technology, which aims to reduce labor costs and improve order accuracy, with expectations of broader benefits in the next two years [3] - Despite the long-term potential of the Infinite Kitchen initiative, Sweetgreen faced negative sales trends due to weak traffic in key markets like Los Angeles, New York City, Washington D.C., and Boston [3] Investment Sentiment - Sweetgreen, Inc. was held by 27 hedge fund portfolios at the end of Q2 2025, unchanged from the previous quarter [4] - While acknowledging Sweetgreen's potential, the company believes that certain AI stocks present greater upside potential and lower downside risk [4]

Company Performance - Sweetgreen, Inc. closed at $8.34, reflecting a decline of 5.98% from the previous day, underperforming the S&P 500's loss of 0.55% [1] - Over the past month, shares of Sweetgreen have decreased by 2.53%, while the Retail-Wholesale sector gained 1.22% and the S&P 500 increased by 3.64% [1] Upcoming Financial Results - The company is expected to report an EPS of -$0.16, which represents an 11.11% increase compared to the same quarter last year [2] - Revenue is anticipated to be $183.58 million, indicating a 5.85% rise from the year-ago quarter [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at -$0.71 per share and revenue at $713.85 million, reflecting increases of 10.13% and 5.47% respectively from the prior year [3] Analyst Estimates and Confidence - Recent changes to analyst estimates for Sweetgreen should be noted, as positive revisions indicate analysts' confidence in the company's performance and profit potential [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Sweetgreen at 4 (Sell) [6] Industry Context - Sweetgreen operates within the Retail - Restaurants industry, which holds a Zacks Industry Rank of 184, placing it in the bottom 26% of over 250 industries [7]

Company Overview - Sweetgreen, Inc. (NYSE:SG) is a fast casual restaurant chain that has faced significant challenges this year, with its shares down 73% year-to-date [2]. Financial Performance - The latest earnings report indicated a 7.5% drop in same-store sales and a loss of $0.20 per share, both of which exceeded analyst estimates [2]. Strategic Initiatives - Sweetgreen is focusing on revitalizing its operations by expanding automated kitchen operations and increasing its restaurant count, which are deemed necessary given the current struggles [2]. Market Comparison - Jim Cramer has compared Sweetgreen to CAVA, noting that both companies are victims of high prices, particularly highlighting a $15 price point that has affected demand [2].

Sweetgreen - Sweetgreen is experiencing significant growth challenges, with same-store sales dropping 7.6% year over year and a 10.1% decline in traffic [3][4] - For the full year, Sweetgreen now expects same-store sales to decline by 4% to 6%, down from previous guidance of flat same-store sales in 2025 [4] - The company anticipates full-year revenue in the range of $700 million to $715 million, a decrease from earlier guidance of $740 million to $760 million [4] - Sweetgreen's stock has fallen nearly 80% from its 52-week high, and it is currently valued at approximately $1.05 billion, which is about 1.5 times its revenue guidance [5] - The company reported a net loss of $23 million in Q2, and its restaurant-level profitability is declining due to falling sales [5][6] - Sweetgreen is unlikely to thrive in a challenging economic environment characterized by inflation and declining consumer sentiment, facing stiff competition from similar options that offer better value [6] Figma - Figma's stock has seen a significant decline of over 50% from its peak after an initial surge post-IPO [8]

Core Insights - Quantum computing stocks have gained significant attention and value, driven by advancements in technology and endorsements from industry leaders [2][4] Quantum Computing Industry - Alphabet's introduction of the Willow quantum chip marked a pivotal moment, showcasing its capability to perform calculations in less than five minutes that would take traditional supercomputers 10 septillion years [2] - Quantum Computing (QUBT) is the smallest among pure-play quantum computing stocks, reporting a revenue of $61,000 in Q2, down from $183,000 a year prior [3] - The current market cap of Quantum Computing is $2.7 billion, primarily based on future potential rather than current revenue [4] Sweetgreen - Sweetgreen is a fast-casual restaurant chain leveraging technology through its Infinite Kitchen, an automated system for ingredient preparation [6] - The company has faced short-term challenges, with comparable sales declining due to various factors, yet it has significant growth potential with plans to expand from 250 to over 1,000 locations [7][8] - Sweetgreen's market cap is currently $1 billion, having dropped 74% this year, but recovery could position it above Quantum Computing's market cap [9] Innodata - Innodata is a small-cap AI stock providing data labeling services, competing with larger firms like Scale AI, indicating a substantial market for data organization [10] - The company reported a 79% year-over-year revenue increase to $58.4 million in Q2, with a net income of $7.2 million, showing profitability [11] - With a market cap of $2 billion, Innodata is positioned to potentially surpass Quantum Computing in the coming years [11]

Company Performance - Sweetgreen, Inc. (SG) shares decreased by 2.3% to $8.49, underperforming the S&P 500's daily loss of 0.05% [1] - Over the past month, the stock has depreciated by 5.03%, while the Retail-Wholesale sector gained 4.45% and the S&P 500 gained 3.44% [1] Upcoming Earnings - The upcoming EPS for Sweetgreen, Inc. is projected at -$0.16, reflecting an 11.11% increase compared to the same quarter last year [2] - Revenue is estimated to be $183.58 million, indicating a 5.85% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at -$0.71 per share and revenue at $713.85 million, showing changes of +10.13% and +5.47% respectively from the previous year [3] - Recent analyst estimate revisions suggest a positive outlook for the business [3] Analyst Ratings - The Zacks Rank system, which incorporates estimate changes, currently ranks Sweetgreen, Inc. at 4 (Sell) [5] - Over the past month, there has been a 4.48% decline in the Zacks Consensus EPS estimate [5] Industry Context - The Retail - Restaurants industry is part of the Retail-Wholesale sector and has a Zacks Industry Rank of 188, placing it in the bottom 24% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Insights - The fast-casual restaurant sector is experiencing a valuation reset as investors reassess growth expectations and profitability for companies like Chipotle, CAVA, and Sweetgreen [1][6] Group 1: Chipotle Mexican Grill Inc - Chipotle has seen its stock price drop over 35% year-to-date, trading near a 52-week low of $38.30, significantly down from its high of $66.74 [2] - The company's forward earnings multiple is approximately 35X, still higher than traditional restaurant peers, but more than half of its historical 10-year multiple, indicating a shift in market perception [2][3] Group 2: CAVA Group Inc - CAVA's stock, initially performing well post-IPO with triple-digit P/E ratios, has now fallen to around its 52-week low, with a valuation of about 56X earnings, reflecting a market reset rather than a collapse [4] - The decline in CAVA's stock price suggests a cooling sentiment due to concerns over slowing traffic growth and the challenges of maintaining premium pricing in a competitive landscape [4] Group 3: Sweetgreen Inc - Sweetgreen remains unprofitable and is valued based on price-to-sales rather than earnings, with investors hoping for future profitability as the market shows less patience for growth-at-all-costs strategies [5] - The stock trajectory of Sweetgreen indicates that the previous "pay now for future margins" approach is losing traction in the current tighter capital environment [5] Group 4: Market Trends - The collective decline of these fast-casual brands marks a significant shift from their previous treatment as high-growth tech startups, highlighting a new market preference for value over hype [6]

We recently published 13 Stocks Jim Cramer Discussed During His Historic Morning Appearance. Sweetgreen, Inc. (NYSE:SG) is one of the stocks Jim Cramer recently discussed. Cramer discussed Sweetgreen, Inc. (NYSE:SG)’s shares in this episode as part of a conversation commenting on the woes faced by the broader restaurant industry. The CNBC TV host believes that just like its peers, CAVA and Chipotle, Sweetgreen, Inc. (NYSE:SG) is also constrained by high prices. Like its peers, the firm has had to cut guid ...