Core Insights - Sweetgreen is facing significant challenges as its traffic and sales decline, resulting in millions of losses each quarter [1][2] - The company reported a 9.5% decrease in same-store sales and an 11.7% drop in foot traffic in the third quarter of this year [1] - Sweetgreen's share price has plummeted over 80% this year, indicating a loss of investor confidence [2] Company Performance - Sweetgreen has struggled to achieve profitability since its inception in 2007, despite revolutionizing the quick service industry with healthy food options [2] - Investors are increasingly nervous about Sweetgreen's performance, as it has underperformed compared to general market benchmarks [3] Strategic Initiatives - The company is focusing on automation, having acquired Spyce in 2021 to enhance its kitchen technology with robotic systems [3] - Currently, approximately 10% of Sweetgreen's stores are equipped with the automated "Infinite Kitchens" system, although the company has scaled back its initial goal of full automation [4]

Core Viewpoint - The article highlights underappreciated small-cap stocks with AI connections that have the potential to outperform the market, specifically focusing on Sweetgreen and Amplitude as promising investment opportunities. Group 1: Sweetgreen - Sweetgreen is a fast-casual salad chain that is investing in a robotic assistant called the Infinite Kitchen to enhance service efficiency and reduce labor costs [4][6] - The company plans to retrofit existing restaurants with Infinite Kitchens and aims to open at least 40 new locations this year, with 20 of them utilizing this technology [5] - Despite recent underwhelming financial results and a significant stock decline, Sweetgreen's market cap has fallen to approximately $1 billion, indicating potential for recovery [7] - The company aims to expand its store count to at least 1,000 locations in the coming years, although it is currently experiencing losses and declining comparable-store sales [8] - Sweetgreen's recovery is contingent on improved macroeconomic conditions and consumer demand, but the stock holds significant upside potential if the Infinite Kitchens perform well [9] Group 2: Amplitude - Amplitude is a small-cap software company specializing in product analytics, helping businesses understand customer interactions with their digital products [10] - The company has enhanced its analytics platform with new AI agents that analyze data and provide insights, positioning itself as a leader in product analytics [11][12] - With a market cap of around $1.5 billion, Amplitude has substantial growth potential as it capitalizes on AI-related demand [12] - The company is experiencing accelerated growth after overcoming post-pandemic challenges, making it an attractive under-the-radar AI stock [13]