Sweetgreen: A Focus On Healthy Food Should Benefit The Stock (NYSE:SG)

Jaime E. Love

Scott Olson/Getty Images News

Investment thesis

Sweetgreen, Inc. (NYSE:SG) operates fast-casual restaurants in the U.S. It aims to serve healthy foods prepared from locally sourced, seasonal, and organic ingredients. With increasing health-related illnesses, there is growing awareness about having a healthy diet, and thus the healthy food market has huge potential. However, although the market has huge potential, Sweetgreen is not operationally profitable. It incurred an operating loss of -$134.4 million for fiscal 2021, as against an operating loss of -$141.6 million for fiscal 2020. The company went public in November 2021.

Moreover, the restaurant industry is highly competitive, with many local, national, and regional chains. Thus, until the time the company can deliver consistent operating profits, it’s better to wait and watch the stock.

Business

As of December 26, 2021, Sweetgreen owned and operated 150 restaurants. It has a presence in 13 states and Washington, D.C. The

Read More