Put Sales Call Bottom in Healthy Food Restaurant
SweetGreen (SG) will report 5-8 after the close and shares have closed higher three of the last four reports including three moves with 35%+ one-day intraday gains. SG has seen some notable short puts open with 5000 July $20, 3750 July $25, 1500 October $33 and also 2850 July $18 calls bought on 4/17. SG traded up to $45 in late 2024 and recently reversed near the 76.4% Fibonacci. SG operates fast food restaurants serving healthy food and beverages. SG has a $2.45B market cap and trades 3.6X Sales as name yet to reach profitability on EPS and an elevated short float at 14%. SG saw weather impact results last quarter and the company is leaning into loyalty, new products, marketing, and Infinite Kitchen. SG should set up for accelerating same-store sales growth which would driver shares higher. Sweetgreen remains confident in its ability to capitalize on the growing demand for healthier, higher-quality food options. Sweetgreen is considering ways to “weaponize price” to drive transactions, either through more aggressive loyalty and discounts or pricing, given the higher flow-through margins in its Infinite Kitchen stores. Sweetgreen is excited about the potential of its new loyalty program and seasonal menu initiatives to drive sales and customer engagement.