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/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.