Mar. 16 at 6:44 PM
Don't be fooled into thinking
$SG is cheap relative to
$CAVA.
$SG's fundamentals continue to deteriorate:
- Operating income remains deeply negative
- Net cash has flipped to net debt
- Cash on hand has fallen from
$472 mil to
$89 mil
At the current burn rate, the balance sheet is weakening fast, and unless profitability improves, the likely paths are equity dilution or additional debt, if not bankruptcy, some time into the future.
If you're trying to decide between
$CAVA and
$SG, choose
$CAVA - actually popular, first of its niche (Mediterranean) to go nationwide as a chain, growing, and profitable.
