Analysts have lowered their price target for Sweetgreen from $13.13 to $12.38, citing slight adjustments in discounted cash flow model assumptions and updated profit margin forecasts.
What's in the News
- Sweetgreen is collaborating with Katz's Delicatessen for a special "LES Pastrami Salad" event at its new Lower East Side, NYC location on October 18. The event will feature a deli-inspired salad and an exclusive merchandise giveaway (Key Developments).
- The company announced its debut in Arizona with two new restaurant openings this fall. Sweetgreen will expand to Scottsdale and Phoenix, introducing local guests to its menu and rewards program (Key Developments).
- Jamie McConnell has been appointed as the new Chief Financial Officer, succeeding Mitch Reback. Mitch Reback will remain in an advisory role for six months after his retirement in late September 2025 (Key Developments).
- Sweetgreen expects at least 40 net new restaurant openings in 2025, including 20 featuring its Infinite Kitchen technology (Key Developments).
- Updated 2025 guidance projects revenue of $700 million to $715 million and a same-store sales change between negative 6 percent and negative 4 percent (Key Developments).
Valuation Changes
- Fair Value: Lowered from $13.13 to $12.38, reflecting a minor decrease in estimated share value.
- Discount Rate: Increased marginally from 9.32% to 9.36%, indicating a slightly higher perceived risk in future cash flows.
- Revenue Growth: Projected to rise slightly, from 14.17% to 14.22%.
- Net Profit Margin: Adjusted down fractionally, from 8.16% to 8.15%.
- Future P/E: Reduced from 25.92x to 24.46x, which suggests expectations for lower earnings multiples ahead.
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