#7 - Sweetgreen (NYSE:SG)
If you’re an investor looking for a place where trends collide, Sweetgreen Inc. (NYSE: SG) is one of the restaurant stocks to watch closely. SG stock is up 166.7% in the last 12 months, making it one of the best-performing stocks during that time.
The fast-casual restaurant chain focuses on providing healthy food at scale. It doesn’t take a giant leap to suggest that the company may strongly benefit from the GLP-1 trend that’s sweeping the nation. Patients who are on GLP-1 drugs are strongly encouraged to consume a diet rich in high-fiber foods such as vegetables, fruits, and whole grains.
Although SG stock is trading near the top of its 52-week range, analysts are beginning to move their price targets higher. The key milestone will be seeing the company report positive earnings. That still looks to be down the road a little way, and with short interest around 12%, Sweetgreen may be one for the watch list now, but one you should monitor closely.
About Sweetgreen
Sweetgreen, Inc, together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.
- Current Price
- $42.42
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 8 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $38.20 (9.9% Downside)
You may be concerned about investing in restaurant stocks, particularly if you've noticed that traffic patterns are still down from 2019. But this is a case where investors really have to look under the hood of a company's earnings report to see what's happening.
When events like a global pandemic occur, society changes. Sometimes, those changes are subtle. But often, like airport screening after 9/11, they are abrupt and permanent.
Even before 2020, restaurants were setting the stage for this transition, with many businesses already adopting digital technology to facilitate online ordering. When COVID-19 hit, these restaurants were leaps and bounds ahead of other chains.
For many American families in 2024, "dining out" means “carryout." It simply isn't necessary to eat on-premises anymore. Today, online ordering is table stakes for companies that want to compete in this sector.
The companies on this list have embraced a digital strategy and are well-positioned to capture market share in an evolving restaurant stock landscape.
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