Latest news with #InfiniteKitchen
Globe and Mail
9 hours ago
- Business
- Globe and Mail
Billionaires Ken Griffin and Israel Englander Are Buying a Beaten-Down Growth Stock -- and It Could Turn $10,000 Into $100,000
Sweetgreen (NYSE: SG) is one of the more disruptive companies in the retail/restaurant industry today. The company has brought a new concept to the fast-casual format as the largest fast-casual salad chain in the U.S. That menu seems to be resonating with customers. Sweetgreen is rapidly adding new locations, and its average restaurant brings in $2.9 million in revenue, a number on par with fast-casual leader Chipotle. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » However, an even greater point of disruption from Sweetgreen may be its Infinite Kitchen, a robotic system to help expedite orders, saving money on labor and improving throughput. Of the 40 restaurants it plans to open this year, 20 will have an Infinite Kitchen. The company has also teased the idea of licensing the new technology, which could open up a new revenue stream. Despite that potential, Sweetgreen has had a forgettable year. Its stock is down 54% year to date through June 4. It has faced several challenges, including the wildfires in Los Angeles, one of its biggest markets and where the company is headquartered, and broader headwinds in the restaurant industry due to concerns about tariffs and other signs of a weakening economy. In its first-quarter earnings report, the company reported a same-store sales decline of 3.1%. It said quarter-to-date comps were down mid-single digits in the second quarter as concerns around tariffs picked up in April, weighing on demand. A fresh opportunity A 54% sell-off is disappointing for existing shareholders of the stock, but it creates an opportunity to scoop up this promising growth stock on the cheap. In fact, two billionaires did just that in the first quarter. Israel Englander's Millennium Management purchased 2.17 million shares of the restaurant stock, adding to a stake it started building in Q1 2023. Similarly, Ken Griffin's Citadel Advisors, which is often considered to be the best-performing hedge fund, added 1.27 million shares of Sweetgreen. Citadel first bought the stock when it went public in the fourth quarter of 2021. Buying the dip on Sweetgreen is risky, especially with an uncertain economy, and declining comparable sales are never a good sign for a restaurant chain. However, management's guidance calls for an improvement in same-store sales over the rest of the year, forecasting flat growth for the year. More importantly, the company's long-term growth opportunities are still significant. Will Sweetgreen be a ten-bagger? After the reset in the stock price, Sweetgreen's market cap has fallen to just $1.8 billion. That means the stock could turn $10,000 to $100,000 if its market cap reached $18 billion, a reasonable goal for a restaurant chain. Despite the weak same-store sales, Sweetgreen continues to aggressively open new stores. It plans to add 40 locations this year, growing the store base by 16%. Over the longer term, CEO Jonathan Neman sees the company growing to at least 1,000 stores, if not several thousand. This should drive the stock higher over the longer term, assuming Sweetgreen can pull off that expansion. In the meantime, the company is delivering strong average unit volumes of $2.9 billion, and its restaurant-level operating margin of 19% is good enough to drive profitability, especially as that margin is likely to increase over time. Investments in the Infinite Kitchen system seemed to have weighed on the bottom line but should spread out over time. Finally, Infinite Kitchen should give the company a competitive advantage in areas like labor and throughput, and the effect of the technology should eventually show in the financial results. Overall, Sweetgreen is the leader in a growing fast-casual category, its restaurants are generating strong traffic, and it has a potential technological advantage in Infinite Kitchen. The stock is risky, but the upside potential is there, especially once the economy improves. The company should return to same-store sales growth when that happens. Should you invest $1,000 in Sweetgreen right now? Before you buy stock in Sweetgreen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sweetgreen wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Jeremy Bowman has positions in Chipotle Mexican Grill and Sweetgreen. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Yahoo
20-05-2025
- Business
- Yahoo
Sweetgreen, Inc. (SG) Set to Enter Arkansas Market as Part of Southern U.S. Expansion
On May 19, Sweetgreen, Inc. (NYSE:SG) announced plans to enter the Arkansas market, marking a notable move in its ongoing expansion throughout the southern U.S. Photo by Samuel Regan-Asante on Unsplash Sweetgreen, Inc. (NYSE:SG) is mainly known for its fast-casual concept centered around fresh, healthy meals, offering a range of salads, bowls, and other nutritious options, with a strong emphasis on seasonal produce and sustainable practices. According to the announcement, the first Arkansas location will launch in Fayetteville later this year, followed by another spot at Walmart's new headquarters in Bentonville. These upcoming openings are part of Sweetgreen, Inc. (NYSE:SG)'s broader national growth strategy. The company is eyeing additional markets in 2025, including Sacramento, Phoenix, and Cincinnati. Looking ahead, Sweetgreen aims to increase its presence by 15% to 20% each year and plans to open at least 40 new restaurants in 2025, half of which will feature its advanced Infinite Kitchen technology. Christopher Tarrant, Chief Development Officer at Sweetgreen, made the following comment: 'Northwest Arkansas is quickly becoming a hub for innovation and growth, and we're excited to be part of it. Opening on Walmart's forward-thinking New Home Office campus and in Fayetteville, home of the University of Arkansas, is a meaningful milestone for our brand, and we're looking forward to serving these communities with fresh, real food.' Sweetgreen, Inc. (NYSE:SG)'s expansion strategy was also reflected in its first-quarter earnings, where it provided FY25 guidance projecting revenue between $740 million and $760 million. Same-store sales are expected to remain relatively unchanged, while the restaurant-level profit margin is estimated at around 19.5%. In addition, the company expects adjusted EBITDA to come in at approximately $30 million, underscoring its continued focus on operational efficiency as it scales. While we acknowledge the potential of SG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Sweetgreen, Inc. (SG) Set to Enter Arkansas Market as Part of Southern U.S. Expansion
On May 19, Sweetgreen, Inc. (NYSE:SG) announced plans to enter the Arkansas market, marking a notable move in its ongoing expansion throughout the southern U.S. Photo by Samuel Regan-Asante on Unsplash Sweetgreen, Inc. (NYSE:SG) is mainly known for its fast-casual concept centered around fresh, healthy meals, offering a range of salads, bowls, and other nutritious options, with a strong emphasis on seasonal produce and sustainable practices. According to the announcement, the first Arkansas location will launch in Fayetteville later this year, followed by another spot at Walmart's new headquarters in Bentonville. These upcoming openings are part of Sweetgreen, Inc. (NYSE:SG)'s broader national growth strategy. The company is eyeing additional markets in 2025, including Sacramento, Phoenix, and Cincinnati. Looking ahead, Sweetgreen aims to increase its presence by 15% to 20% each year and plans to open at least 40 new restaurants in 2025, half of which will feature its advanced Infinite Kitchen technology. Christopher Tarrant, Chief Development Officer at Sweetgreen, made the following comment: 'Northwest Arkansas is quickly becoming a hub for innovation and growth, and we're excited to be part of it. Opening on Walmart's forward-thinking New Home Office campus and in Fayetteville, home of the University of Arkansas, is a meaningful milestone for our brand, and we're looking forward to serving these communities with fresh, real food.' Sweetgreen, Inc. (NYSE:SG)'s expansion strategy was also reflected in its first-quarter earnings, where it provided FY25 guidance projecting revenue between $740 million and $760 million. Same-store sales are expected to remain relatively unchanged, while the restaurant-level profit margin is estimated at around 19.5%. In addition, the company expects adjusted EBITDA to come in at approximately $30 million, underscoring its continued focus on operational efficiency as it scales. While we acknowledge the potential of SG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
SG Q1 Earnings Call: Menu Innovation and Loyalty Investments Amid Consumer Slowdown
Casual salad chain Sweetgreen (NYSE:SG) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 5.4% year on year to $166.3 million. On the other hand, the company's full-year revenue guidance of $750 million at the midpoint came in 1.8% below analysts' estimates. Its non-GAAP loss of $0.13 per share was 27.2% above analysts' consensus estimates. Is now the time to buy SG? Find out in our full research report (it's free). Revenue: $166.3 million vs analyst estimates of $164.8 million (5.4% year-on-year growth, 0.9% beat) Adjusted EPS: -$0.13 vs analyst estimates of -$0.17 (27.2% beat) Adjusted EBITDA: $285,000 vs analyst estimates of -$1.52 million (0.2% margin, significant beat) The company dropped its revenue guidance for the full year to $750 million at the midpoint from $770 million, a 2.6% decrease EBITDA guidance for the full year is $30 million at the midpoint, below analyst estimates of $33.62 million Operating Margin: -17.2%, in line with the same quarter last year Free Cash Flow was -$29.86 million compared to -$9.98 million in the same quarter last year Locations: 251 at quarter end, up from 227 in the same quarter last year Same-Store Sales fell 3.1% year on year (5% in the same quarter last year) Market Capitalization: $2.14 billion Sweetgreen's Q1 results were shaped by ongoing investments in menu innovation, the rollout of new restaurant formats, and an intensified focus on operational execution. CEO Jonathan Neman highlighted external headwinds, including adverse weather events and shifting holiday patterns, but emphasized that the company's Infinite Kitchen and sweetlane formats contributed to operational efficiencies, while menu launches such as Ripple Fries boosted customer engagement. Management acknowledged that the same-store sales decline reflected both traffic softness and mixed results in core urban markets, especially as consumers became more selective with discretionary spending. Looking ahead, management's full-year guidance factors in a more challenging macro environment and the impact of tariffs on build-out costs and packaging. CFO Mitch Reback cited 'a dynamic environment' and noted that April sales trends were softer than typical seasonal patterns, citing shifting consumer sentiment and tariff announcements. The company plans to lean on its newly launched SG Rewards loyalty program, expanded menu offerings, and a continued rollout of Infinite Kitchen restaurants to counteract these headwinds. Leadership expressed confidence in the long-term strategy but acknowledged that near-term volatility could persist. Sweetgreen's management addressed both positive strides and ongoing challenges in the first quarter, focusing on operational adjustments and strategic initiatives to support future growth. Menu innovation impact: New offerings like Ripple Fries and collaborations such as the upcoming KBBQ menu with COTE Korean Steakhouse were cited as direct drivers of increased ticket averages and customer frequency, supporting a refreshed brand perception. Restaurant format advances: The Infinite Kitchen and sweetlane formats drove operational efficiency, higher digital sales, and improved restaurant-level margins, particularly in new and emerging markets. Management noted that these formats continue to outperform traditional units in cash-on-cash returns. Geographic and market variation: While markets like Texas and Colorado saw double-digit same-store sales growth, core urban regions—Los Angeles, New York, Boston, and Washington, D.C.—experienced persistent softness, with management attributing some of this to lingering effects from regional events and changing consumer behaviors. Loyalty program relaunch: The nationwide rollout of SG Rewards resulted in 20,000 new digital customers per week, broadening Sweetgreen's access to customer data and enabling more targeted marketing campaigns. Early adoption rates were described as 'very encouraging.' Tariff and cost management: Management outlined efforts to mitigate tariff-related cost pressures, particularly for packaging and Infinite Kitchen components sourced from China. Initiatives include supply chain diversification and pre-purchasing materials to limit near-term exposure, with longer-term cost reductions anticipated as sourcing shifts progress. Management's outlook for the remainder of the year is anchored in driving traffic through menu and technology innovation, while navigating macroeconomic uncertainty and external cost pressures. Menu and loyalty initiatives: Sweetgreen aims to increase visit frequency and attract new customers with limited-time menu offerings, seasonal rotations, and expanded use of the SG Rewards program, which management believes will become a key lever for traffic and retention. Expansion of innovative formats: Continued investment in Infinite Kitchen and sweetlane locations is expected to drive improved operational efficiency and higher digital sales, supporting restaurant-level margin expansion despite cost headwinds. Tariff and macro uncertainty: Management highlighted risks associated with consumer sentiment, ongoing tariff impacts on build-out and packaging costs, and operational challenges in legacy urban markets. The company cautioned that a sustained slowdown in discretionary spending and further cost inflation could pressure results. Jon Tower (Citigroup): Asked whether tariffs would alter plans for Infinite Kitchen rollouts; management replied that returns remain attractive and deployment strategy is unchanged despite higher build-out costs. Sara Senatore (Bank of America): Inquired about regional performance differences; management noted ongoing softness in Los Angeles and a recent downturn in Washington, D.C., attributed to lingering wildfire impacts and changing consumer patterns. Zach Ogden (TD Cowen): Sought clarity on the cadence of same-store sales recovery; management indicated that Q2 would remain challenged but expects seasonal menus and loyalty initiatives to improve trends in the second half of the year. Sharon Zackfia (William Blair): Queried value perceptions and operational challenges in core markets; management pointed to the need for a return to more frequent seasonal menus and greater discipline in digital order execution. Christine Cho (Goldman Sachs): Asked about SG Rewards metrics and data usage; management reported strong weekly signups and highlighted plans to leverage customer data for targeted marketing and menu development. In the coming quarters, our team will closely monitor (1) the impact of new menu launches, including the KBBQ collaboration and seasonal offerings, on guest frequency and sales trends; (2) adoption and engagement levels of the SG Rewards loyalty program as a driver of digital and in-store traffic; and (3) the scale-out of Infinite Kitchen and sweetlane formats, especially their effect on margin and throughput. The company's ability to offset tariff and macroeconomic pressures through operational discipline and customer engagement tactics will also be an important area of focus. Sweetgreen currently trades at a forward EV-to-EBITDA ratio of 51.7×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
1 Growth Stock Down 40% in 2025: Should You Buy It With $100 Right Now?
Sweetgreen (NYSE: SG) made a splash with its initial public offering (IPO) in November 2021, but not in a good way. Shares of the health-forward fast-casual chain tanked not long after their debut. Exactly two years following the company's IPO, they had lost a gut-wrenching 80% of their starting value. While Sweetgreen failed to satisfy investors' appetites early on, it has turned things around. Since the start of 2024, shares have surged 70% (as of April 25). However, volatility remains the key theme. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » In 2025, this restaurant stock has dropped by 40%. Meanwhile, the broader S&P 500 index has fallen 6%. Does this mean you should buy Sweetgreen with $100 right now? Founded 14 years after Chipotle Mexican Grill, Sweetgreen brings the same emphasis on a fast-casual concept, customizable menu, open kitchen, and sustainable ingredients, but to salads and grain bowls. Plus, it plays on the growing interest in eating healthy. According to McKinsey & Company, 82% of U.S. consumers consider wellness a "top or important priority in their everyday lives." That has given Sweetgreen a favorable growth tailwind. After opening 25 new stores in fiscal 2024, the company has a footprint of 245 locations. The target is to open at least 40 more this fiscal year. Sweetgreen has focused on positioning itself as a tech-forward restaurant concept, demonstrated by the fact that 56% of revenue in fiscal 2024 came from digital channels in total and 30% came from its own website and app. Digital sales will likely be boosted by Sweetgreen's new points-based loyalty program that was launched in April. What's more, the business is investing in automation. Infinite Kitchen is automated kitchen technology that uses robots to prepare food for customers. The goal is to add it to 20 of the new stores being built this year, which would bring the total to more than 30. Bringing these to more stores has a direct positive benefit to Sweetgreen. Infinite Kitchen helps to lower costs, while at the same time boosting throughput (a measure of how fast customers are served). That's a win-win situation. Besides these more noticeable moves, Sweetgreen also tries to keep things fresh on the menu. In March, the company added Ripple Fries, potatoes air-fried in avocado oil. Jonathan Neman said the business wants to "increase the pace of menu innovation." Due to fears about the direction of the economy, with many now thinking a recession will happen, it makes sense that Sweetgreen's stock has gotten hammered in 2025. If consumers tighten their belts and decide to cut back on eating out, this business could see demand come under pressure. This depressed view has hit the stock's valuation, which now trades at a more reasonable price-to-sales ratio of 3.3. I can understand why this might be enticing to some investors looking to buy a growth stock on the dip. However, I'm not entirely convinced that growth will be durable. Since the average meal at Sweetgreen costs substantially more than at a rival like Chipotle, I believe it somewhat caps the former's total addressable market. The leadership team expects same-store sales to rise by just 1% to 3% this year, demonstrating economic sensitivity. It doesn't help that Sweetgreen has yet to turn a GAAP profit. It registered a $90 million net loss in fiscal 2024. Maybe with greater scale that will change, but it could be a long road to get there. The industry is extremely competitive as well, which will make things difficult for Sweetgreen. I don't think investors should buy the stock. Maybe when I see consistently increasing earnings, that perspective will change. Before you buy stock in Sweetgreen, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sweetgreen wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. 1 Growth Stock Down 40% in 2025: Should You Buy It With $100 Right Now? was originally published by The Motley Fool Sign in to access your portfolio
