Sweetgreen Inc. Class A Common Stock (SG)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, generate cash, and trade below intrinsic value. Sweetgreen does not fit that picture today. It operates a fast-casual restaurant chain, but the filed figures show losses in fiscal year 2023 (period ended 2023-12-31), fiscal year 2024 (period ended 2024-12-29), and fiscal year 2025 (period ended 2025-12-28): net income was -$113.4M, -$90.4M, and -$134.1M, respectively. Revenue went from $584.0M in fiscal year 2023 to $679.5M in fiscal year 2025, but FairStock's revenue growth is -3.55% and profit growth is -71.28%, so scale has not produced earning power. In fiscal Q2 2026 (quarter ended 2026-06-28), revenue was $192.7M and net loss was $26.3M. Fiscal Q1 2026 (quarter ended 2026-03-29) did show net income of $125.8M, but one quarter does not offset the pattern, and fiscal Q2 2026 slipped back into loss. The balance sheet and returns are not comforting. FairStock reports ROE of 3.07%, ROCE of -9.04%, debt-to-equity of 0.76, and trailing free cash flow of -$123.7M, a -10.4% FCF yield. Its Piotroski F-Score is 3/9 and Altman Z-Score is 0.45, both weak. The Lynch category is none because the company lost money in each of the last four years. Valuation offers no cushion. At the 2026-10-13 close of $10.03, the market cap is $1.2B, or 2.55x book and 111.44x the stated EPS. FairStock's Graham Number is $2.82, leaving a -255.67% margin of safety. EV/EBITDA is 15.47. Without durable profits and positive cash flow, the stock is speculative rather than Graham-style investment. I would wait for evidence of consistent profitability and cash generation.

In plain English: Sweetgreen runs fast-casual restaurants selling salads and healthy bowls, with many orders placed online or through its app. The business is not consistently profitable, has been burning cash, and carries weak financial scores. At $10.03, the shares look expensive compared with the company's profits, accounting value, and cash generation.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer