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Sweetgreen

SG
15
Restaurants · Consumer Cyclical
Winston Score
15
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 28, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Data not available
Valuation
Weak

Winston Score History

The full picture

Sweetgreen is a fast-casual restaurant chain that sells salads, grain bowls, and warm plates made from fresh, locally sourced ingredients. It targets health-conscious consumers, mostly in urban areas, and positions itself as a healthier alternative to traditional fast food. The company operates around 230 locations across major U.S. cities like New York, Los Angeles, and Chicago.

Sweetgreen makes money by selling food directly to customers in its restaurants and through its own app and third-party delivery platforms. It has invested heavily in a loyalty app and is piloting automated "Infinite Kitchen" locations that use robots to assemble orders, which could lower labor costs over time. The company is not yet profitable, and its negative operating margin reflects high labor, food, and real estate costs — the main risk is whether it can scale enough locations to reach profitability before its cash reserves run thin.

Score breakdown

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Quality

Profit per sale
Gross Margin
13.1%
Thin — 13.1% gross margin
Profit after running costs
Operating Margin
-14.2%
Losing money on operations — -14.2%
Return on the money invested
ROCE
-27.2%
Weak — -27.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-0.6%
Shrinking sales (-0.6% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
-202%
Weak — only -202% of profit becomes cash
Spare cash per sale
FCF Margin
-17.1%
Burning cash (-17.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
63.5x
no trend
Expensive — P/E 63.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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