Sweetgreen, Inc. — Earnings Quality Grade F
SG · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 3 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 0.4%, CFFO -129.3%. Cash follows revenue
Expense Quality
Inventory 20.0% vs COGS 5.9%. Normal
CapEx growth 24.0% is >2x revenue growth 0.4%
SG&A/Gross Profit = 138.5%, exceeds 70%
Gross margin 15.2%, change -4.4pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = -15.4%. Low accruals
Cash $0.1B covers only 25% of debt $0.4B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 11% of equity. Manageable
Interest coverage = -5863.5x (<2x). Financial stress
Other assets 15.9% vs revenue 0.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -36% YoY. Normal
Manipulation Score
M-Score = -3.15 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25