SGNEUTRAL

Gross Margin

10.0%

Higher than 10% of Consumer Cyclical sector peers

Updated 96h ago

Sector Performance

10th percentile

10.0%

Sector Median

36.3%

Sector Avg

30.6%

📊

Deep Analysis

Gross margin is the percentage of revenue left after subtracting the cost of goods sold; a 10.0% margin means Sweetgreen keeps $0.10 for every dollar of sales.

This sits well below the sector median of 36.3%, placing the company in the 10th percentile among consumer cyclical peers. Year-over-year change is N/A, but quarter-over-quarter gross margin rose from -1.5% to 10.0%, a +766.7% increase. The very low absolute level signals ongoing cost pressure, while the sharp sequential improvement suggests recent operational changes may be reducing losses. This combination implies investment risk from continued underperformance relative to peers, but also an opportunity if the positive trend persists. The metric supports the neutral verdict: the weak standing tempers enthusiasm for the strong short-term improvement, keeping the overall assessment balanced.

Frequently Asked Questions

What does the Gross Margin tell investors about SG?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does SG's Gross Margin compare to its sector?

SG's Gross Margin of 10.0% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 10th percentile.

Who are SG's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: PHM (24.1%), BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.