Business

Sweetgreen stock is a “recipe for portfolio destruction”

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

“This is a bear market, not a bull market… In a bear market, you don’t stick your head out to pick on the stocks you hate.” he said.

“Now Wall Street loves profits, cash flow, dividends. Sweetgreen has none of these. [Federal Reserve] and tape if you try to catch a fish in it, and that’s a recipe for portfolio destruction,” the Mad Money host added.

Cramer was not shy when explaining why he thinks the company’s shares are unsuitable for investment. He reminded viewers that the company’s expensive salads were unlikely to sell in an inflationary environment.

He added that the possibility of a recession or a new variant of Covid-19 also makes him wary of stocks.

“Sweetgreen is a loss-making growth story…I told you to avoid these stocks when they went public. Told you to avoid them again in December when they were trading at $33. Nothing that has happened in the past six months has made me change my mind,” Kremer said.

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

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