First Watch Restaurant Group (NASDAQ:FWRG) Issues Quarterly Earnings Results, Misses Expectations By $0.01 EPS

First Watch Restaurant Group (NASDAQ:FWRG) announced its earnings results on Tuesday. The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.01), FiscalAI reports. First Watch Restaurant Group had a net margin of 1.38% and a return on equity of 2.85%. The firm had revenue of $354.67 million during the quarter, compared to analysts’ expectations of $351.57 million. During the same period in the previous year, the firm earned $0.03 EPS. The firm’s revenue for the quarter was up 15.2% compared to the same quarter last year.

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

• Second-quarter revenue rose 15.2% to $354.7 million, driven by 3.4% same-restaurant sales growth and continued contributions from new locations. Same-restaurant traffic was nearly flat but improved 160 basis points sequentially, turning positive in June.
• Marketing investments, menu innovation, and seasonal offerings are generating traction. Unaided brand awareness increased more than 50% since early 2025, while 17% of customers acquired through targeted campaigns have already returned for a second visit.
• First Watch opened 18 restaurants in the quarter and said its 2025 and 2026 new-restaurant classes are outperforming both existing units and underwriting targets. The company maintains a pipeline of more than 100 projects and expects to reach approximately 2,200 potential U.S. locations over time.
• Strong demand for premium beef offerings increased food costs by nearly 100 basis points year over year and led management to lower 2026 adjusted EBITDA guidance to $133 million-$136 million. The company expects the margin pressure to moderate after the current limited-time offering ends.
• Beginning in 2027, First Watch will target about 50 company-operated openings annually instead of maintaining a higher unit-growth rate, prioritizing self-funded expansion, balance-sheet strengthening, and positive free cash flow. Updated long-term targets call for 2%-4% same-restaurant sales growth, 10%-13% revenue growth, and 11%-14% adjusted EBITDA growth.

First Watch Restaurant Group Price Performance

Shares of NASDAQ FWRG opened at $12.33 on Tuesday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.29 and a quick ratio of 0.25. The company has a market cap of $760.02 million, a price-to-earnings ratio of 44.25, a price-to-earnings-growth ratio of 7.61 and a beta of 1.03. The stock’s 50-day moving average is $12.03 and its two-hundred day moving average is $12.86. First Watch Restaurant Group has a 1-year low of $9.97 and a 1-year high of $19.53.

Institutional Trading of First Watch Restaurant Group

A number of large investors have recently made changes to their positions in FWRG. AQR Capital Management LLC purchased a new position in First Watch Restaurant Group in the fourth quarter worth approximately $240,000. Entropy Technologies LP acquired a new position in shares of First Watch Restaurant Group during the fourth quarter worth $211,000. Police & Firemen s Retirement System of New Jersey increased its holdings in First Watch Restaurant Group by 21.8% in the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 13,751 shares of the company’s stock valued at $207,000 after buying an additional 2,461 shares during the last quarter. Intech Investment Management LLC increased its holdings in First Watch Restaurant Group by 11.1% in the fourth quarter. Intech Investment Management LLC now owns 16,041 shares of the company’s stock valued at $242,000 after buying an additional 1,606 shares during the last quarter. Finally, Caxton Associates LLP acquired a new stake in First Watch Restaurant Group in the third quarter valued at $189,000. 96.11% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. DA Davidson reiterated a “buy” rating and issued a $17.00 price objective on shares of First Watch Restaurant Group in a report on Tuesday, April 28th. Wall Street Zen cut First Watch Restaurant Group from a “sell” rating to a “strong sell” rating in a report on Saturday, July 18th. Stephens reissued an “overweight” rating and set a $21.00 price target on shares of First Watch Restaurant Group in a research report on Wednesday, May 6th. Freedom Capital raised shares of First Watch Restaurant Group to a “strong-buy” rating in a research note on Wednesday, July 1st. Finally, Stifel Nicolaus set a $14.00 target price on shares of First Watch Restaurant Group in a research note on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $18.78.

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.