Jim Cramer Says Sweetgreen Either Needs to Lower Prices or Introduce Lower Priced dishes

Sweetgreen, Inc. (NYSE:SG) is one of the stocks Jim Cramer shed light on. Cramer highlighted that the company’s restaurant meals are costly. He said:

“Here’s something you never hear from the restaurant companies that are losing customers, even though it’s the truth: our meals cost too much. Unfortunately, that’s exactly what’s going on with two formerly red-hot restaurant chains, Sweetgreen and CAVA… Last week… the salad chain announced that its same-store sales had fallen by 7.6%. Wall Street was looking for a 5.5% decline. Sweetgreen lost 20 cents per share. The analysts were only looking for an 11-cent hit.

… To me, it’s pretty clear what’s going on. CAVA and Sweetgreen have to lower their prices or give us a couple of much lower-priced dishes if they want to turn things around. For now, they’re pricing themselves out of this American market. I get why they’re reluctant to cut prices. What business wants to lower margins?… The problem is, unlike McDonald’s, they’re either maybe too proud or too obtuse, I don’t know, to realize that the consumer’s gotten serious about avoiding high-priced foods, including theirs, even though the food is fresh and good.”

Sweetgreen, Inc. (NYSE:SG) operates fast-food restaurants that serve healthy food and drinks, with ordering also available online or through its app.

While we acknowledge the potential of SG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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