Sweetgreen Stock Has Doubled in Only a Month. But This Other Under-the-Radar Restaurant Is a Much Better Buy Today.
In the first quarter of 2024, restaurant company Sweetgreen (NYSE: SG) was among the stock market's top performers. As of this writing, shares of the salad-centric chain are up 115% year to date and have doubled in only the past month. It's a nice reprieve for shareholders, considering Sweetgreen stock has largely trended downwards since it went public in 2021.
Sweetgreen stock started skyrocketing for fundamental reasons, which is good. On Feb. 29, the company reported financial results for the fourth quarter of 2023. Q4 revenue was up 29% from the prior-year period. But its restaurant-level profit margin surged from 11% last year to 16% in Q4, which is a massive improvement.
Therefore, Sweetgreen's financials are improving already, which is why the stock is up sharply in recent weeks. And management hopes to continue financial improvements as it further develops its margin-enhancing robotic kitchens.
Source Fool.com
