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.”

Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels

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

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