William Blair analyst Sharon Zackfia has maintained their bullish stance on SG stock, giving a Buy rating yesterday.
Sharon Zackfia’s rating is based on Sweetgreen’s ability to meet the lower end of its full-year 2024 guidance, despite facing challenges. The company’s fourth-quarter performance showed a 4% increase in comparable sales, driven entirely by pricing, although this was slightly below the consensus expectation of 6%.
Furthermore, Sweetgreen demonstrated operational improvements with a restaurant-level margin increase of 120 basis points to 17.4%, marking the eighth consecutive quarter of year-over-year growth. This operational efficiency, coupled with pricing strategies, contributed to a full-year margin expansion of 210 basis points to 19.6%, supporting the Buy rating.
According to TipRanks, Zackfia is a 5-star analyst with an average return of 14.3% and a 54.19% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as BJ’s Restaurants, Cheesecake Factory, and Shake Shack.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $33.00 price target.
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