Update shared on 04 Dec 2025
Analysts have slightly raised their price target on Sweetgreen by refining the discount rate and future P/E assumptions, now seeing modestly improved risk-adjusted upside despite largely unchanged views on revenue growth and profit margins.
What's in the News
- Entering the Sacramento market with two new restaurants in Midtown and Fair Oaks + Howe, extending Sweetgreen's nationwide footprint and SG Rewards ecosystem (Business Expansions)
- Opening the first Infinite Kitchen sweetlane location in Costa Mesa, combining automation with a drive-up lane to streamline digital order pickup and expand digitally enabled sales (Business Expansions)
- Rolling out a new macronutrient tracking tool and in-app macro calculator, giving guests real time visibility into protein, carb, and fat content and supporting more personalized nutrition goals (Product Related Announcements)
- Launching the Power Max Protein Bowl with 106g of protein and new Caramelized Garlic Steak dishes, reinforcing the shift toward more protein forward, performance oriented menu choices (Product Related Announcements)
- Updating 2025 guidance to revenue of $682 million to $688 million, with same store sales expected to decline between 8.5% and 7.7% (Corporate Guidance)
Valuation Changes
- Fair Value: Unchanged at 8.23, indicating no material shift in the intrinsic value estimate.
- Discount Rate: Fallen slightly from 9.60 percent to 9.46 percent, modestly lowering the hurdle rate applied to future cash flows.
- Revenue Growth: Effectively unchanged at about 8.18 percent, signaling stable expectations for top line expansion.
- Net Profit Margin: Edged down slightly from 8.17 percent to 8.09 percent, reflecting a minor reduction in long term profitability assumptions.
- Future P/E: Risen slightly from 18.50x to 18.61x, implying a marginally higher valuation multiple on projected earnings.
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