Hedgeye CEO Keith McCullough is adding Sweetgreen (SG) to the short side of Investing Ideas. Below is a brief note.
If you want to be a professionally accurate short seller, you better have #patience as a core Asset Allocation in your #process...
I've been waiting on Sweetgreen and +13% into the close I get my signal.
Here's a good excerpt on as-good-as-it-gets from Howard Penney on this one (from his Consumables Pro research product which is also professionally accurate):
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As I said on Tuesday, "it looks like the company has guided the street to a reasonable 4Q21 SSS number that the company can meet/beat, but it all ends there." The 1Q22 guidance of (A)EBITDA $18-$20M vs FactSet ($24.9M) and Revenue $100-$102M vs FactSet $100.8M and comps of +30-33% vs FactSet 31.4% all look achievable. For the year, they have guided comps +20-26% vs. FactSet 25.0%, with transactions and mix likely turning negative in 2H22. |
Sell the sweetness of it all on green,
KM
