Sweetgreen Poised For Big EBITDA Boost with Tech Innovation, Robotic Kitchens to Drive Margin Expansion: Analyst
Sweetgreen Inc (NYSE:SG) stock price picked up after TD Cowen analyst Andrew Charles upgraded it from Hold to Buy and raised its price target from $31 to $43.
Charles vouched for Sweetgreen’s long-term business given the intrinsic combination of transparent food sourcing and guest-facing technology, the two structural mega themes of the restaurant industry. The analyst is encouraged by execution that has improved 2024 traffic, likely sustaining in 2025.
In the longer term, Sweetgreen’s story is distinguished by Infinite Kitchen’s robotic kitchen equipment, which increasingly demonstrates accretion to cash and cash returns, Charles flagged.
He expects Infinite Kitchens to contribute meaningfully to margin expansion in 2025, which could lead to a 70%+ increase in 2030 adjusted EBITDA. He also argued Infinite Kitchen’s ability to expand the TAM given lower pricing from superior margins.
Sweetgreen’s same-store sales strength is …
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