Sweetgreen Supported by Wraps Launch, Operational Improvements and Easier Comparisons, Oppenheimer Says

MT Newswires Live05-20 23:20

Sweetgreen (SG) could see better sales trends over the next few quarters as wraps, better store operations, easier comparisons, and improving margins support a recovery path, Oppenheimer said in a note emailed Wednesday.

The national launch of wraps has created lower entry price points and could help same-store sales after early testing showed traffic gains, Oppenheimer said.

Better operations under chief operating officer Jason Cochran, the wrap launch, and easier year-over-year comparisons are expected to support the improvement, the investment firm said.

Restaurant margins could improve in H2 for the first time in six quarters, helped by cost opportunities and better sales, according to the note.

Oppenheimer kept its outperform rating and raised its price target for Sweetgreen to $10 from $9, saying stronger results over the next few quarters could help rebuild investor confidence.

Price: 8.84, Change: +0.21, Percent Change: +2.43

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