Why Jim Cramer thinks owning Sweetgreen stock is ‘a recipe for portfolio destruction’

Why Jim Cramer thinks owning Sweetgreen stock is ‘a recipe for portfolio destruction’


CNBC’s Jim Cramer on Tuesday warned investors not to invest in Sweetgreen, saying the stock is unlikely to perform well in an inflationary environment.

“This is a bear market, not a bull market. …  In a bear market, you do not stick your neck out to pick at hated stocks,” he said.

“Right now, Wall Street loves earnings, cash flow, dividends. Sweetgreen’s got none of these things. You’re fighting the [Federal Reserve] and the tape if you try to bottom fish in this one, and that’s a recipe for portfolio destruction,” the “Mad Money” host added.

Cramer didn’t mince words when laying out why he believes the company’s stock is uninvestable. He reminded viewers the company’s pricey salads are unlikely to sell in an inflationary environment. 

The possibility of a recession or a new Covid-19 variant also makes him wary of the stock, he added.

“Sweetgreen’s an unprofitable growth story. …. I told you to avoid this stock when it came public. Told you again to avoid it in December, when it was trading at $33. Nothing that’s happened in the last six months has made me change my mind,” Cramer said.

Shares of Sweetgreen fell 2.3% to $11.86 on Tuesday.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

Ford Motor is set to report earnings after the bell. Here’s what Wall Street expects
Business

Ford Motor is set to report earnings after the bell. Here’s what Wall Street expects

The Ford display is seen at the New York International Auto Show on April 16, 2025. Danielle DeVries | CNBC Ford Motor is set to report its second-quarter earnings after the markets close Wednesday as investors watch for any changes to its full-year guidance, which the automaker suspended in May due to President Donald Trump’s […]

Read More
DOJ drops charges against Fat Brands, chair Andy Wiederhorn
Business

DOJ drops charges against Fat Brands, chair Andy Wiederhorn

Andy Wiederhorn, former Fatburger CEO. CNBC The Justice Department is dropping its case against Fat Brands and its chair Andy Wiederhorn. In May 2024, the company and Wiederhorn were indicted by a federal grand jury in Los Angeles on charges of wire fraud, tax evasion and other counts related to what prosecutors alleged was a […]

Read More
Wall Street sees Starbucks comeback taking hold, even after another lackluster quarter
Business

Wall Street sees Starbucks comeback taking hold, even after another lackluster quarter

Customers enter a Starbucks coffee shop in New York, US, on Monday, July 28, 2025. Victor J. Blue | Bloomberg | Getty Images Wall Street is seeing early signs that Starbucks‘ turnaround is taking hold, despite a quarterly earnings miss and another quarter of shrinking same-store sales. “The focus for Starbucks’ third fiscal quarter was […]

Read More