Part 1: Deep dive on Sweetgreen (SG)
Paid subscribers to Jonah’s Growth Stock Deep Dives receive ~2 deep dives per month (8,000+ words), ~2 mini deep dives per month (2,000+ words) and quarterly earnings commentary (on most of my portfolio companies) plus access to my investment portfolio (up +101.8% YTD in 2024, up +134% in 2023 and up +2,050% since January 2020) with real-time daily activity, notes/commentary and charts throughout the day.
My investment strategy is pretty simple. I want to own 20-30 high-quality growth stocks with the best fundamentals at the most reasonable valuations — if the fundamentals begin to disappoint or the valuation no longer looks compelling I will trim or sell my position. I want to own stocks that have at least 50% upside within the next 1-2 years and at least 100% upside within the next 3-4 years. If I buy stocks that are too expensive, the fundamentals aren’t good enough or my investment thesis is flawed — then I’ll never hit my investment targets. My objective is to maximize performance in good markets and minimize losses in bad markets. I accomplish this by being very selective in what I own but also using technical analysis, stop losses and hedges to protect my portfolio in market downturns.
Company: Sweetgreen
Ticker: (SG)
Website: http://Sweetgreen.com
IPO date: November 18, 2021
IPO price: $28.00
Current stock price: $25.26
Outstanding shares: 112.97 million
52-week high: $26.15 on March 26, 2024
52-week low: $6.10 on March 28, 2023
ATH: $56.20 on November 18, 2021 (on the IPO day)
Market cap: $2.85 billion
Net cash/debt: +$210 million
Enterprise value: $2.64 billion
Headquarters: Los Angeles, California, United States
Number of employees: 6,180+
Average price target from analysts: $18.29
Investor Relations:
https://investor.sweetgreen.com/
Q4 2023 Earnings Report: https://investor.sweetgreen.com/press/news-details/2024/Sweetgreen-Inc.-Announces-Fourth-Quarter-and-Fiscal-Year-2023-Financial-Results/default.aspx
Outline
Introduction [part 1]
Company Background [part 1]
Opportunity [part 1]
Business Model [part 1]
Competitive Advantages [part 1]
Risks [part 1]
Valuation [part 2]
Investment Model [part 2]
Analysts [part 2]
Technicals [part 2]
Conclusion [part 2]