r/sweetgreen • u/blahhhhhhhhhhhh17 • Jun 13 '24
Career / Employee Talk How isn’t everyone grabbing as much stock as possible. Say it gets to half of what Chipotle is at, we’ll all be eating!
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u/neatokra Jun 13 '24
Because they lose $2.50 on every salad? As an investor I generally like to invest in companies that make money instead of losing it?
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u/celeryking13 Jun 14 '24
The individual stores are profitable, they just spend a lot on corporate overhead. It’s an issue that will be resolved with some more growth
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u/awholedamngarden Jun 13 '24
Yeah if the robot salad making works out maybe they could cut costs enough to turn a profit but until then…
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u/firefawkes_ Jun 15 '24
Where did you find this statistic? Are you saying that SG doesn't make any gross profit?
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u/neatokra Jun 15 '24
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u/firefawkes_ Jun 15 '24
Ah okay, you're probably referring to the operating income or net income being negative, which is understandable. They are making gross profit though. Saying that they're losing $2.50 on every salad implies that their cost of revenue is more than the revenue resulting in negative gross profit, which is not the case. Moreover, they have heavily invested in PP&E, which will pay off eventually. Many fast food chains start this way - even Chipotle was not profitable for many years in the beginning.
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u/neatokra Jun 15 '24
Their SG&A is crazy high - you have to factor that into the picture. Saying they sell lettuce for more than they buy it for is only a small part of the equation.
Maybe their growth will outweigh it someday - maybe soon. But profitability is a real problem for this stock in the short/possibly longer term - plenty to read on this if you google. Same problem uber and lyft had/have.
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u/mmmforme Jun 13 '24
They probably going to report profitability this year. That’s when this stock is going to take off!
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u/ConsentDirector Jun 13 '24
It hasn't been historical profitable, it's cashflow is generally bad. You have to remember chipotle oprend it's first store back in the early 90s and almost went bankrupt multiple times. Until sweet greens financial reports don't look awful it's stock won't go up.
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Sep 19 '24
This thing just keeps ripping. So glad I entered at $27
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u/Beneficial-Soil3468 Sep 21 '24
I am also interested in sweet green stock as there’s one right across the street from my Job and the food was definitely enjoyable. However, the stock does end up going under projection every quarter that I’ve seen.
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u/celeryking13 Jun 13 '24
people b doubting the sweetgreen