Shares of Sweetgreen (SG +0.15%) were moving higher today even as there was no major news out on the stock.
Instead, positive chatter on social media and investor bets that their new wraps would drive a comeback continued to push the stock higher.
As of 2:35 p.m. ET, shares were up 9.7%.
Image source: Sweetgreen.
Are wraps taking off?
Sweetgreen stock is now up more than 50% since May 13, even as there's been no major news other than the national launch of four wraps, which are designed to give customers a lower-priced option as Sweetgreen seemed to be suffering from the perception of being overpriced.
One person on X said that a manager told her that wraps are making up close to half of the company's orders, a good sign that they are driving growth. The wraps seem to have generally received positive reviews online as well.
Additionally, Sweetgreen named Cindy Olsen as its Chief Strategy Officer yesterday, a new position in the company. While the market doesn't typically react to news like that, it does seem like a positive step in its turnaround.
Last week, JPMorgan Chase upgraded the stock to overweight after meeting with management, saying that its transformation was gaining momentum in part due to wraps.
NYSE: SG
Key Data Points
What's next for Sweetgreen
We won't get an official update from Sweetgreen until its second-quarter report is due out in August. However, the company is scheduled to participate in a fireside chat at a TD Cowen conference next Tuesday, June 2 at 8:00 a.m. ET. The company made that announcement this morning, which also may have excited investors, as it has only done one other analyst conference this year.
Investors will likely want to tune in for that presentation as management should provide some color on the performance of its wraps and the overall business. Given the recent surge in the stock, it wouldn't be surprising to see shares of the fast-casual salad chain swing on the news.
