In this piece, we will look at the stocks Jim Cramer recently discussed.In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the latest inflation report. The CPI figures for November were released last week, and they were the first to hit the wires after the government shutdown prevented earlier releases. These inflation figures were a welcome surprise, as while estimates had expected prices to rise by 3.1% in November, the data showed they rose by 2.7% instead.Within the data, anothe ...

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 ...

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 - 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]