Sweetgreen: Nothing In Sight That Could Drive A Valuation Upgrade
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May Investing Ideas703 FollowersFollow5ShareSavePlay(8min)CommentsSummarySweetgreen faces accelerating demand weakness, with core customer attrition and a 9.5% same-store sales decline highlighting brand relevance issues.SG’s growth narrative is structurally impaired as management slashes 2026 net new restaurant targets from over 40 to just 15–20, signaling deteriorating unit economics.Spyce sale provides $100 million in liquidity, but does not address SG’s fundamental margin and demand challenges; restaurant-level margins fell to a record low of 13.1%.I maintain a hold rating on SG, as growth deceleration, margin compression, and diminished expansion prospects justify the current discounted valuation. bgwalker/iStock Unreleased via Getty Images Investment overview I wrote about Sweetgreen (SG) previously with a hold rating, as the business fundamentals were weakening across multiple metrics, and the steps to turn around the business had little forward visibility. The setupThis article was written byMay Investing Ideas703 FollowersFollowI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason to write on SeekingAlpha is to use this platform as a tracker for my investing ideas performance, and also to connect with like-minded investors that have the same investing interest.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.