Sweetgreen, Inc. (SG) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Retail / Consumer Discretionary · as of Sep 24, 2026
Sweetgreen, Inc. (SG)
A forensic read on Sweetgreen, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Distress
Financial health
-3.0
Distress distance
Clean
Earnings quality
4
Forensic signals
62.9
P / E (ttm)
-37.6%
ROE
$918M
Market cap
0.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Sweetgreen, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -3.0, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-19.0%
FY2025
Return on invested capital.Return on invested capital is -19.0% in the latest fiscal year, against -19% in FY2023, having run between -19.0% and -14.4% across FY2023–FY2025 with no direction held. The capital base behind it grew +14% across FY2023–FY2025, from $508M to $580M, and the return did not fall doing it, so the dollars added over that window earned at least the -19% the older base was already earning.
+2.7%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +5% over the last 2 years to FY2025 (+2.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~5%.
5% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 5% of revenue in FY2025 — about $0.31 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.7% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
+14.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +14.3% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +20% against 0% in revenue and PP&E up +10% against revenue 0%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 49% of net operating assets, against an accruals ratio of 14.3%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
Key fundamentals
Latest Revenue$679.5M
Revenue Growth YoY+0.4%
Revenue CAGR (2yr)+7.9%
Net Margin-19.7%
Free Cash Flow-$119.2M
Return on Equity-37.6%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Sweetgreen, Inc.'s actual 10-K/10-Q/8-K filings?