Compass
AI Equity Research
Start free for 3 days
● AI Equity Research · Consumer Cyclical

Sweetgreen, Inc. (SG)

AI stock analysis · Restaurants · Last analyzed Aug 20, 2026

Compass Score
1.0/5
Call
Avoid
Price
$6.42
AI Target
$6.65 +3.6%
AI Analyst Summary

Sweetgreen is a fast-casual salad chain struggling to translate its brand identity into consistent financial performance, with a 0-of-4 EPS beat rate, no earnings growth, and a negative forward P/E signaling continued losses ahead. Revenue growth of just 3.8% YoY is underwhelming for a restaurant concept still far from profitability, leaving the 64.2x trailing P/E without fundamental justification. The key risk is that the path to profitability remains unclear, and any further operational disappointments could materially pressure the stock given its already-stretched valuation.

Catalysts
Risks
Fundamentals
Pe Trailing P/E: 64.2x; Forward P/E: Negative · 1.0/5
Trailing P/E of 64.2x is egregiously expensive for a restaurant-sector name, and the negative forward P/E signals the company is expected to remain unprofitable in the near term. No valuation support on earnings basis.
Peg N/A · 2.0/5
PEG is not available due to inconsistent or negative earnings. Revenue growth of only 3.8% YoY provides little support for a premium valuation, warranting a below-average score.
Analyst Rating Hold (2.7) · 3.0/5
Consensus of 2.7 on the inverted scale (4 Buy / 10 Hold / 1 Sell across 12 analysts) maps to a neutral score. Analyst community is largely on the sidelines, with Hold ratings dominating the breakdown.
Earnings Trend Earnings Growth YoY: N/A; Revenue Growth: +3.8% · 1.0/5
Earnings growth is not available due to ongoing losses. Revenue growth of just 3.8% YoY is well below what would be needed to justify the current valuation or signal a near-term path to profitability. Trend is negative and not improving.
Price Target Beat 0 of 4 quarters beat · 1.0/5
Sweetgreen has missed EPS estimates in all 4 of the last 4 reported quarters, the worst possible beat rate. This is a significant red flag for execution and management credibility.
Management Weak execution signals · 1.0/5
A 0-of-4 EPS beat rate, ongoing unprofitability, and muted revenue growth collectively point to poor near-term execution. Analyst confidence is limited, with the majority holding rather than adding exposure. Capital allocation quality cannot be confirmed as constructive given sustained losses.
● See the full picture
Get today's top-scored picks, ranked for you.

Compass screens thousands of stocks every morning and hands you a short list of high-conviction picks — scored, explained, and re-ranked to your risk profile.

Start free for 3 days →
No credit card. Then $9/month. Cancel anytime.
How Compass scores stocks

Compass pre-filters thousands of U.S. equities by fundamentals, then an AI analyst scores each finalist 1–5 across six measures — spanning valuation, growth, analyst sentiment, and management quality — into one composite score, refreshed every market morning. Browse all covered stocks →

Not financial advice. Compass is an analytical tool, not a registered investment adviser or broker-dealer. Scores and recommendations are generated by AI, may be inaccurate or out of date, and are not investment, financial, legal, or tax advice. Investing involves risk, including loss of principal. Do your own research and consult a licensed financial professional. About Compass.