How Has Sweetgreen (SG) Stock Done For Investors?

SG CMG

Key Points

• Sweetgreen stock has been up and down, in line with inconsistent business performance.

• It's currently dealing with external headwinds, as well as internal issues.

• The situation doesn't seem likely to improve significantly in the near term.

• 10 stocks we like better than Sweetgreen ›

The market embraced Sweetgreen (NYSE: SG) stock when it went public in 2021 to much fanfare. But it quickly plunged along with the market, and the stock has been up and down since then. Let's examine its performance over the past four years and consider what investors should think about it going forward.

Another big name in fast-casual dining

As the success of Chipotle Mexican Grill and other fast-casual restaurant chains became apparent, many new companies entered the fray. Sweetgreen is following in those footsteps, with 140 stores focused on premium, fresh ingredients. It has stores throughout the U.S., but they're mostly concentrated on the coasts.

Unfortunately, it's been a tough time for many of these chains as they deal with strong headwinds. So while there have been wins over the past few years, recent performance has been dismal, with a 9.5% decrease in comparable sales year over year in the third quarter and an expanding operating loss.

Management isn't blaming everything on the external environment. It acknowledged problems in its operations and admitted that only a third of restaurants met operational standards in the 2025 second quarter. It has made major changes throughout the company, and as of the end of the third quarter, management says that the percentage of restaurants that meet standards is now at 60%.

The future looks uncertain

Sweetgreen stock has moved in line with its performance, and depending on when you'd have invested, you'd see very different results. If you had bought at the 2023 lows and sold at the 2024 highs, you would have made a nice gain. But looking back at one- and three-year intervals, as well as how the stock has performed since its first-day closing price, you'd be down on your investment. Here's how much you'd have lost:

Metric

1-year

3-year

Since IPO closing

Investment loss

84%

47%

86%

Data collected from YCharts on Nov. 21, 2025.

There aren't any specific reasons to have complete confidence in the company's turnaround. Investors should always focus on the long-term thesis, and there certainly is one here. If the external environment improves, with lower inflation and a big economic boom, Sweetgreen could soar.

But since there are internal issues, it's far from a guarantee. There are a lot of players in this space today, meaning a lot of competition. There's plenty of room for expansion from 140 stores, but unless they become more efficiently run, the company could continue to lose money for a long time.

The stock could continue to go up and down, but you can't time the market. So while Sweetgreen could be a valuable investment in the long run, there's too much risk involved to recommend buying it at this stage of its journey.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short December 2025 $45 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

How Has Sweetgreen (SG) Stock Done For Investors? was originally published by The Motley Fool