First Watch Restaurant Group (NASDAQ:FWRG) Releases Quarterly Earnings Results

First Watch Restaurant Group (NASDAQ:FWRG) released its quarterly earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.02), Briefing.com reports. First Watch Restaurant Group had a return on equity of 3.20% and a net margin of 1.59%.The firm had revenue of $330.96 million for the quarter, compared to analyst estimates of $329.35 million. During the same period in the prior year, the business earned ($0.01) earnings per share. First Watch Restaurant Group’s revenue for the quarter was up 17.3% on a year-over-year basis.

Here are the key takeaways from First Watch Restaurant Group’s conference call:

• First Watch reported solid Q1 results — $331M revenue (+17.3%), same-restaurant sales +2.8%, restaurant-level operating margin 18.5% (↑200 bps) and adjusted EBITDA +22.2% to $27.8M — and reiterated FY26 same-store (1–3%) and revenue (12–14%) guidance while raising the low end of adjusted EBITDA to $133–140M; system count is 648 restaurants after 16 openings.
• Management expanded digital marketing to ~75% of the base, says early analytics show a positive ROI (driving new and lapsed customers, higher engagement and brand awareness), and pulled several million of marketing spend into Q2 to accelerate read‑throughs.
• The system-wide rollout of the new core menu (late February) plus an extended 20-week seasonal menu is improving mix toward higher‑margin items, raising attachment rates and driving per‑person check growth incremental to carried pricing.
• Same-restaurant traffic declined 2% (weather accounted for ~100 bps) and the company reported a net loss of $2.7M; management still expects full‑year commodity inflation of 1–3% and labor inflation of 3–5%, and pulling marketing forward may raise near‑term G&A volatility.

First Watch Restaurant Group Trading Up 2.2%

FWRG stock traded up $0.27 during midday trading on Wednesday, reaching $12.45. 1,051,387 shares of the company’s stock traded hands, compared to its average volume of 1,664,670. The company has a market capitalization of $767.11 million, a P/E ratio of 40.13, a PEG ratio of 3.30 and a beta of 1.11. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.29 and a quick ratio of 0.25. First Watch Restaurant Group has a fifty-two week low of $10.09 and a fifty-two week high of $19.53. The business has a 50-day moving average price of $12.12 and a two-hundred day moving average price of $15.08.

Analysts Set New Price Targets

Several equities research analysts have issued reports on FWRG shares. Citigroup decreased their price target on shares of First Watch Restaurant Group from $26.00 to $21.00 and set a “buy” rating on the stock in a research note on Wednesday, February 25th. Benchmark decreased their target price on shares of First Watch Restaurant Group from $24.00 to $22.00 and set a “buy” rating on the stock in a research report on Monday, April 20th. Stephens reissued an “overweight” rating and issued a $21.00 target price on shares of First Watch Restaurant Group in a research report on Wednesday. Stifel Nicolaus set a $14.00 target price on shares of First Watch Restaurant Group in a research report on Tuesday. Finally, Barclays decreased their target price on shares of First Watch Restaurant Group from $19.00 to $17.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, First Watch Restaurant Group has an average rating of “Moderate Buy” and a consensus price target of $19.25.

Insider Activity at First Watch Restaurant Group

In other news, CEO Christopher Anthony Tomasso sold 25,062 shares of First Watch Restaurant Group stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $12.52, for a total transaction of $313,776.24. Following the sale, the chief executive officer owned 957,315 shares in the company, valued at $11,985,583.80. This trade represents a 2.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO H Melville Hope III sold 3,878 shares of First Watch Restaurant Group stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $12.52, for a total transaction of $48,552.56. Following the completion of the sale, the chief financial officer owned 111,787 shares of the company’s stock, valued at approximately $1,399,573.24. This trade represents a 3.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 68,013 shares of company stock valued at $853,606. 6.10% of the stock is currently owned by corporate insiders.

Institutional Trading of First Watch Restaurant Group

Several institutional investors and hedge funds have recently bought and sold shares of FWRG. Royal Bank of Canada grew its holdings in First Watch Restaurant Group by 67.3% during the first quarter. Royal Bank of Canada now owns 54,267 shares of the company’s stock valued at $903,000 after purchasing an additional 21,830 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of First Watch Restaurant Group by 31.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,766 shares of the company’s stock valued at $379,000 after acquiring an additional 5,497 shares during the period. Legal & General Group Plc boosted its position in shares of First Watch Restaurant Group by 1.6% in the second quarter. Legal & General Group Plc now owns 45,531 shares of the company’s stock valued at $730,000 after acquiring an additional 724 shares during the period. Rhumbline Advisers boosted its position in shares of First Watch Restaurant Group by 45.8% in the second quarter. Rhumbline Advisers now owns 73,882 shares of the company’s stock valued at $1,185,000 after acquiring an additional 23,205 shares during the period. Finally, American Century Companies Inc. boosted its position in shares of First Watch Restaurant Group by 43.4% in the second quarter. American Century Companies Inc. now owns 72,166 shares of the company’s stock valued at $1,158,000 after acquiring an additional 21,846 shares during the period. Institutional investors and hedge funds own 96.11% of the company’s stock.

Trending Headlines about First Watch Restaurant Group

Here are the key news stories impacting First Watch Restaurant Group this week:

• Positive Sentiment: Stephens reaffirmed an “overweight” rating and set a $21 price target, implying meaningful upside from current levels — a clear bullish signal from a research shop. Article Title
• Positive Sentiment: Management raised adjusted EBITDA guidance to $133M–$140M for FY2026, lifting expectations for operating profitability even as earnings remain pressured by non‑cash or one‑time items. Article Title
• Positive Sentiment: Q1 call highlighted profitable growth themes (same‑restaurant sales expansion, unit growth and margin improvement initiatives) that analysts say could support a return to sustained profitability. Article Title
• Positive Sentiment: Operationals: Q1 revenue grew 17.3% year‑over‑year to ~$331M and same‑restaurant sales rose 2.8%; the company opened 16 restaurants — evidence of healthy unit and top‑line expansion. Article Title
• Neutral Sentiment: Company reiterated a same‑restaurant sales outlook of 1%–3% and backed full‑year revenue guidance, which reduces investor uncertainty around the topline but leaves margin recovery timing open. Article Title
• Neutral Sentiment: Earnings materials and the full transcript/slide deck are available for deeper due diligence — useful for investors parsing one‑time items versus recurring performance. Article Title
• Negative Sentiment: GAAP EPS missed consensus (loss of $0.04 vs. est. -$0.02), and the company reported a net loss for the quarter — a near‑term drag on sentiment and valuation multiples. Article Title
• Negative Sentiment: TD Cowen trimmed its price target from $18 to $17 (still a “buy”), signaling some analyst caution on near‑term upside even as longer‑term growth is acknowledged. Article Title

First Watch Restaurant Group Company Profile

First Watch Restaurant Group, Inc (NASDAQ: FWRG) operates a specialty daytime dining concept focused on breakfast, brunch and lunch. The company’s casual, full-service cafés emphasize fresh ingredients, made-to-order entrées and a seasonally driven menu that ranges from omelets and Benedicts to salads, skillets and afternoon sandwiches. First Watch positions itself as a daytime-only destination, with most locations opening early morning and closing by mid-afternoon.

Founded in 1983 by Ken Pendery and John Sullivan in Pacific Grove, California, First Watch began as a single café and gradually expanded through company-owned and select franchised locations.