cornerstone capital

@orrdavid Happened on this tweet while revising my position - was wondering if people were still short since IKs hit 7-10%+ RLM in Naperville and management want to retrofit to 25-50% stores, and 18-20% unit growth until 2030 seems pretty steep to me

I've been short Sweetgreen $SG but I'm tempted to quit. A friend *really* loves it, says the place is very busy in LA and he thinks they can raise prices decently. If they can, and if they can expand, it could work very well long term. Any opinions?

7/ If you then add the cost of contractors, architects and subcontractors (according to HNGRY) is around $140K cash per store. What are people’s thoughts on the economics here?

3/ Had chat with hyphen/$CMG investors who say it contributes to the notion of significantly overstated throughput – higher throughput/capacity unlocks flywheel of lower wait times → increased demand during peak hours → higher utilization of fixed labor costs.

Been looking into $SG and was wondering what people think. 1/ I understand that there seems to be a lot of interest in EBITDA margin expansion on a cost covered basis with IKs but what about the opportunity cost and cash conversion from opening new stores?

6/ Add retrofit costs and the lost profit of a store closure to the IK’s $500K product cost. If an NYC store does $3.5M in sales, the opportunity cost of the retrofit is ~$53K per month ($3.5M/12 x 18%).

6) Quoted from HNGRY "Take the new Penn Plaza location, (assuming management’s 10% margin boost and $450K-550K reported CAPEX)" that means that infinite kitchen payback at the first two $2.6mm AUV suburban locations is about two years. How about retrofitting urban stores in NYC?

5/ thoughts on street models? SG priced to near perfection – street DCFs incorporate 2/3rds of sweetgreen’s with IKs after hitting 1k locations with $3.8mm AUVs by 2036. Limited proof of concept and high opportunity cost of retrofitting. Breaking down numbers next thread.

4/ Read a HNGRY article cannel check says 1 employee processes ~1 bowl/30 seconds --> 120 bowls per hour within the Infinite Kitchen (so 240/hour for 2 employees). Around 31% lower than Spyce’s original statement of 350 bowls per hour in its own retail locations

@techinvestoor @NEWBUHO 2/ Seems that $CMG with Hyphen and 1.5 years proof of concept with $SG + IKs has ended debate about automation, most street models bake in 7-10%+ margins. Hearing that most investors care more about the revenue story (so SSS + unit growth) was wondering what your thoughts were

@NEWBUHO The undervaluation is absurd when you think of the potential for them to expand nationally and internationally and when you factor in 10%+ profit margins from robotic kitchens. The next $CMG? I think so for $SG.

$SG $50 up next then $100 then $200 Dramatically undervalued relative to opportunity in front of them to open hundreds of Infinite Kitchens with 10%+ higher gross margins.

@techinvestoor @NEWBUHO 1/ I understand that there seems to be a lot of interest in EBITDA margin expansion on a cost covered basis but what about the opportunity cost and cash conversion from opening new stores?