Sweetgreen: Disappointing Slide In Growth, Recovery Will Likely Take Time (Downgrade)
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Sweetgreen's shares fell over 10% due to a slowdown in same-store sales growth in Q4 and a forecast of continued deceleration in FY25. The company expects negative same-store sales growth in Q1, partly due to LA wildfires. The stock is downgraded to neutral, though long-term margin expansion potential remains.
February 28, 2025 | 1:00 am
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Sweetgreen's shares dropped over 10% following a slowdown in same-store sales growth and a negative forecast for Q1, partly due to LA wildfires. The stock is downgraded to neutral, but long-term potential for margin expansion remains.
The significant drop in Sweetgreen's stock price is due to disappointing sales growth figures and a negative outlook for Q1, exacerbated by external factors like LA wildfires. The downgrade to neutral reflects these short-term challenges, though the long-term potential for margin expansion through initiatives like Infinite Kitchens is still seen as a positive.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100