Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Sweetgreen (NYSE:SG) and its peers.
Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding.
Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.
Casual salad chain Sweetgreen (NYSE:SG) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 5.4% year on year to $166.3 million. On the other hand, the company’s full-year revenue guidance of $750 million at the midpoint came in 1.8% below analysts’ estimates. Its non-GAAP loss of $0.13 per share was 27.2% above analysts’ consensus estimates.
Casual salad chain Sweetgreen (NYSE:SG) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 5.4% year on year to $166.3 million. On the other hand, the company’s full-year revenue guidance of $750 million at the midpoint came in 1.8% below analysts’ estimates. Its GAAP loss of $0.21 per share was in line with analysts’ consensus estimates.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Unprofitable companies face headwinds as they struggle to keep operating expenses under control.
Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
Goldman Sachs flags ongoing risks for U.S. restaurants in 2025, with macro uncertainty, weak consumer sentiment, and tariff pressures weighing on growth.
Commodity trends shifted in Q1, with deflation in grains but a spike in coffee prices. Restaurant stocks lag historic EPS multiples, and investors now eye April demand and potential tariff impacts.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
CAVA Group stock has been punished on EPS miss and lowered forecasts despite a scorching 21.2% YoY comp sales, more than Chipotle and Sweetgreen combined.
From fast food to fine dining, restaurants play a vital societal role. But it’s not all sunshine and rainbows as they’re notoriously hard to run thanks to perishable ingredients, labor shortages, or volatile consumer spending.
Unfortunately, these factors have spelled trouble for the industry as it has shed 3.9% over the past six months. This performance was discouraging since the S&P 500 held its ground.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at modern fast food stocks, starting with CAVA (NYSE:CAVA).
