Sweetgreen Forecasted to Experience Flat Stock Price in FY23
June 2, 2023
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Sweetgreen ($NYSE:SG) is a fast-casual restaurant chain that specializes in salads and grain bowls. Despite its impressive growth in terms of revenue and locations, Sweetgreen’s stock price appears to be flat for fiscal year 23. Analysts have noted that Sweetgreen’s stock price has remained stagnant for several months, with no signs of increasing in the near future. This is a stark contrast to the company’s earlier years, when the stock price saw significant growth.
While there are numerous factors that could be influencing this stagnant state, analysts have been unable to pinpoint a specific issue causing the change. It is unclear what will happen to Sweetgreen’s stock price in the near future, however it appears unlikely that there will be an increase during fiscal year 23. Investors hoping for a strong return on their investment should proceed with caution, as the stock price appears to be at a standstill.
Stock Price
Thursday’s trading saw SWEETGREEN stock open at $9.6 but close at $9.5, representing a 0.3% decrease from the previous closing price of $9.5. This dip follows a general trend indicating that SWEETGREEN stock is expected to remain relatively flat in Fiscal Year 23, with no significant increase or decrease in value. This news comes as a surprise to many investors, who had been expecting the company’s stock to grow in the coming year. Sweetgreen_Forecasted_to_Experience_Flat_Stock_Price_in_FY23″>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sweetgreen. More…
| Total Revenues | Net Income | Net Margin |
| 492.58 | -174.9 | -33.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sweetgreen. More…
| Operations | Investing | Financing |
| -29.55 | -114.8 | 4.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sweetgreen. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 895.81 | 373.25 | 4.86 |
Key Ratios Snapshot
Some of the financial key ratios for Sweetgreen are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.7% | – | -35.2% |
| FCF Margin | ROE | ROA |
| -22.9% | -20.0% | -12.1% |
Analysis
At GoodWhale, we have recently analyzed SWEETGREEN’s financials and the results were interesting. Based on the Star Chart, SWEETGREEN has an intermediate health score of 4/10 considering its cashflows and debt, suggesting that it is likely to sustain future operations in times of crisis. Additionally, SWEETGREEN is strong in growth, medium in asset, and weak in dividend and profitability. Ultimately, we concluded that SWEETGREEN is classified as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this assessment, investors who are comfortable with risk may be interested in such a company. These types of investors may be looking for an opportunity to gain high returns through capital appreciation. Furthermore, these investors may also look at companies such as SWEETGREEN as a short-term investment due to their rapid growth potential. Sweetgreen_Forecasted_to_Experience_Flat_Stock_Price_in_FY23″>More…
Peers
Its competitors are BT Brands Inc, Doutor Nichires Holdings Co Ltd, and Odd Burger Corp. Sweetgreen Inc has an edge over its competitors because it offers a variety of healthy food options that are affordable and convenient.
– BT Brands Inc ($NASDAQ:BTBD)
L Brands, Inc. is an American fashion retailer based in Columbus, Ohio. The company was founded in 1963 by Leslie Wexner. It owns and operates several retail chains, including Victoria’s Secret, Bath & Body Works, La Senza, Henri Bendel, and Mast General Store. L Brands posted revenue of $12.5 billion in 2016. The company has a market cap of $13.89 million and a return on equity of 2.15%.
– Doutor Nichires Holdings Co Ltd ($TSE:3087)
Doutor Nichires Holdings Co Ltd is a Japanese company that manufactures and sells pharmaceuticals and health foods. The company has a market cap of 72.34B as of 2022 and a Return on Equity of 2.52%. Doutor Nichires Holdings Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange. The company was founded in 1934 and is headquartered in Tokyo, Japan.
– Odd Burger Corp ($TSXV:ODD)
Odd Burger Corp is a publicly traded company with a market capitalization of $27.57 million as of January 2022. The company has a negative return on equity of -120.07%, meaning that it has lost more money than it has made in the past year. Odd Burger Corp is a fast food company that specializes in burgers and fries. The company has locations in the United States and Canada.
Summary
Investors should take caution when considering Sweetgreen, as forecasted financials indicate the stock price is unlikely to change significantly in FY23. Additionally, their net income has been trending downward in recent years, and further cost-cutting efforts are needed to eventually improve profitability. With this in mind, investors may want to wait for more positive news before investing in Sweetgreen.
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