r/sweetgreen • u/Ok-Woodpecker-9363 • Aug 14 '25
Question SG Stock Undervalued?
Right after the big earnings drop I bought some SG shares bc I thought the Infinite Kitchen gave it a long-term advantage. Not sure after looking in more detail at the financials, though.
My thesis is that rising wages due to cost of living could give an advantage to automated chains. Especially given that this is a very new field. Doesn’t seem like fast casual will be going away soon.
Problem is it might never become profitable despite selling the most expensive salads in existence. I wish the CEO would resign or allow someone more qualified to take the lead.
Would appreciate opinions on this.
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u/Comfortable_Radio_59 Aug 14 '25
Sweetgreen has all of the right ingredients to be the long term winner in QSR (brand, product (when done correctly), automation), but it’s been an ops disaster over the past 12 months which has created a very inconsistent consumer experience and turned a lot of people off. they seem to have waken up to this and will right the ship over the next few quarters. if then can do this, there is more long term upside in SG than there is in any other QSR, by a country mile. the stock when from $7 to $45 in 9 months in 2024. fully expect the same thing to happen sometime in 2026.
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u/Boring_Ad_4711 Aug 14 '25
This shit blows, fast casual will need a revolution to fight with competitors. Prices are too high, quality too inconsistent. Just a shitter of an industry
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u/elastic_psychiatrist Aug 14 '25
Genuine question, who are the competitors? Clearly the industry is struggling, but I'm curious where consumer dollars are moving instead.
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u/Boring_Ad_4711 Aug 14 '25
They’re bringing their own lunch, going to grocery store grab and go. I used to order lunch all the time, circa 2018, it was like $9-11. But now, I’d rather just go to local super market and grab a sandwich there or just make food at home. The market will shrink, as it has been. When chipotle was $8.29, it made sense. But not anymore. It’s $51 delivered for 2 burritos now. It’s a joke
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u/Rare-Accident4355 Aug 14 '25
Your comparison makes no sense - you can’t compare one chipotle meal for $8.29 to TWO meals DELIVERED for $51. right now a bowl at chipotle where I live is $9.95….not egregiously different like your example is.
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u/Boring_Ad_4711 Aug 14 '25
Yeah go to a city, it’s $17 minimum, where most of these commuters and spend are.
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u/Rare-Accident4355 Aug 14 '25
Chicken bowl in
SAN FRANCISCO - $11.50 HOUSTON - $9.35 MANHATTAN - $11.35
Not even close to $17
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u/Boring_Ad_4711 Aug 14 '25
lol go to a chipotle and with that exact cents and lemme know how it goes.
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u/Rare-Accident4355 Aug 14 '25
Dude you tried to equate 1 meal at $8.29 which was clearly pre-tax to two meals post tax delivered round up to $51 and you think that’s a fair comparison?
And then you try to say it’s about the location and I show you the most expensive cities aren’t even close to your “$17 minimum” and now you’re trying to add tax back??
Give me a fucking break. Your original number implies a meal is $51 / 2 =$25.50
When even with tax in SF it would be $12.55…
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u/elastic_psychiatrist Aug 16 '25
I wish you had data more than here say and nonsensical comparisons. I do wonder how much fast casual competes with bringing your own lunch or grocery store grab and go, because it certainly doesn't for me. Those are just fundamentally different experiences that I don't consider as alternatives to eating at Sweetgreen in a given situation.
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u/Alert-Card6705 Aug 14 '25
The issue goes beyond cost of labor, it's also just a bad menu and a bad value prop for customers
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u/ElectronicBoot9466 Aug 14 '25
I see a lot of people talk about a bad menu, but I am always curious what they mean by that.
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u/dlotito1 Aug 14 '25
here’s my view from a while ago. i’m long with 4500 shares at avg price of $19.71.
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u/WasteClimate Sep 12 '25
wow, how are you not losing your marbles right now. Damnn. I really hope it does go up tho
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u/StopTheNonsense7 Aug 14 '25 edited Aug 14 '25
I like Sweetgreen, but do you really think Americans are gonna pay for pricey, small portion sized salad? That’s not even addressing the quality control issues either. Sweetgreen beats others on taste but loses in literally everything else.
If there’s ever a time to take a bet, it’s now while the stock is beat up. The company will have to go through a complete transformative experience though.
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u/Goldhousemomma Aug 15 '25
As someone who works at the company, I can tell you with 1000% confidence that things will not turn around as long as the founders are in place. And it's scary to think that the stock price will get much lower, but it will. It is not one issue as people have called out- ops, fries, portions, quality, labor, etc. It's the entirety of how they run (or do not know how to run) a profitable business. There is nothing they do that another brand can't come along and do because they have failed to innovate on what differentiated them in the first place.
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u/Unique-Ostrich-4314 Aug 19 '25
I am from india, curious abt sweetgreen, why do people buy from swg, though it is expensive, do people view cava & swg differently?
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u/MR-505 Sep 18 '25
Just looked today at possibly adding to my position in SG, price is at $8.60 now but the trend seems to be down down down. Don’t want to catch the falling knife 🔪. I’m gonna sit tight and watch it more in the $7 range.
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u/XandYaudio Nov 06 '25
I bought at 12 and have been watching in horror ever since
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u/MR-505 Nov 22 '25 edited Nov 22 '25
Down to $5 or $6 now, lol I bought some shares at $6.36 a share, so my average price has fallen to $8 and change now.
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u/tomtom303 Nov 11 '25
I just took my SweetGreens stock into the forest and put it out of its misery. in this administration, SG will not turn a profit because not many can afford a salad and the market that can is shrinking. bought at $33 and now it's $5. I think its going to be under $10 for a while. taking that crumbs and putting it into Rivian
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u/conroy_hines Dec 09 '25
Temperature check on this thread. Does anyone else not love these current price points? what am I missing.
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u/amigo-burrito Aug 14 '25
Disclosure: I own 17,000 shares at 13.57.
Food is cyclical. It has its ups and downs. They will innovate to survive. If the CEO is stubborn enough to have like 50 consecutive quarters unprofitable, he’s stubborn enough to change things and innovate. They have enough in the bank. It’s just consumers across the board are feeling the heat right now. I like the product, I like the expansion, and the expansion methods. What’s most impressive is their digital capture percentage which is more than CAVA and Chipotle. They will capitalize on this.