Sweetgreen Inc. (SG): Among the High Growth Restaurant Stocks for 2025

We recently compiled a list of the 10 High Growth Restaurant Stocks For 2025. In this article, we are going to take a look at where Sweetgreen Inc. (NYSE:SG) stands against the other high growth restaurant stocks.

Morgan Stanley recently published a report on the restaurant industry, suggesting that the tough environment that the industry is currently facing may ease out in 2025, though only modestly. Restaurants will have to continue working on providing value meals to consumers who continue to struggle to balance their income and expenses.

A balanced job market could help keep labor costs steady. However, a political campaign against immigration could be a potential headwind for the industry. A growing emphasis on robotics to improve efficiency and customer service could also play a key role in the industry’s development this year, though it is too early to determine the financial implications of these moves.

We decided to shortlist a few stocks that we believe could benefit from an improving industry environment in 2025. To come up with the list of 10 restaurant stocks with a high growth rate, we only considered stocks that have grown by more than 15% in the last 5 years or since IPO and have a market cap of at least $1 billion.

A grinning customer being handed a gift card to enjoy their next meal.

Sweetgreen Inc. (NYSE:SG)

Sweetgreen Inc. runs a chain of fast-food restaurants offering healthy food. It also provides the facility to place online orders through its mobile ordering platform. The company’s innovative Infinite Kitchen model is becoming increasingly popular among consumers and is likely to drive the company’s future growth.

Analysts at Citigroup recently upgraded the stock to Buy from Neutral and increased the price target to $49. They think that there is a substantial upside to the stock on the back of its Infinite Kitchen Model. The Infinite Kitchen model uses a robotic line to prepare food. This reduces labor costs and improves efficiency, leaving the staff to cater to customers, thus improving the overall customer experience.

After enjoying 200% returns within the span of a year, the stock is currently down 32% from its highs, giving an attractive buy opportunity.

Overall SG ranks 7th on our list of the high growth restaurant stocks for 2025. While we acknowledge the potential of SG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.