First Watch Restaurant Group (NASDAQ:FWRG) Shares Gap Down – Here’s What Happened

Shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG) gapped down prior to trading on Tuesday . The stock had previously closed at $15.50, but opened at $13.64. First Watch Restaurant Group shares last traded at $13.5940, with a volume of 1,349,155 shares.

Key Stories Impacting First Watch Restaurant Group

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

• Positive Sentiment: Q4 earnings beat and strong top‑line growth — First Watch reported Q4 EPS of $0.24 versus the Zacks consensus of $0.08 and revenue was up ~20.2% year‑over‑year, signaling improving sales momentum. Read More.
• Neutral Sentiment: Company issued 2026 outlook with revenue roughly in line with consensus (around $1.4B); EPS guidance details were limited in the release, which may leave investors wanting clearer forward profit visibility. Read More.
• Neutral Sentiment: Company provided investor materials and a conference call/slide deck for the quarter (useful for detail but not a catalyst on its own). Read More.
• Negative Sentiment: CFO Mel Hope announced he’ll retire later this year and the company has begun a succession process — leadership changes at the finance function can create short‑term uncertainty while a successor is identified. Read More.
• Negative Sentiment: Profitability remains thin despite revenue gains — net margin (~0.4%) and ROE (~0.8%) are low, and valuation metrics (high P/E) leave limited room for disappointment; weak liquidity ratios (quick/current) and the stock trading below key moving averages may pressure sentiment. Read More.

Analyst Ratings Changes

FWRG has been the topic of a number of recent analyst reports. Zacks Research upgraded shares of First Watch Restaurant Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, February 10th. Wall Street Zen raised First Watch Restaurant Group from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Barclays decreased their price target on First Watch Restaurant Group from $21.00 to $19.00 and set an “overweight” rating for the company in a research note on Wednesday, January 7th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of First Watch Restaurant Group in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $20.91.

First Watch Restaurant Group Price Performance

The stock has a 50-day moving average of $16.14 and a two-hundred day moving average of $16.85. The firm has a market cap of $836.11 million, a price-to-earnings ratio of 171.88, a price-to-earnings-growth ratio of 2.90 and a beta of 0.88. The company has a current ratio of 0.25, a quick ratio of 0.21 and a debt-to-equity ratio of 0.41.

First Watch Restaurant Group (NASDAQ:FWRG) last posted its quarterly earnings data on Tuesday, February 24th. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.08 by $0.16. The company had revenue of $316.35 million during the quarter, compared to analyst estimates of $317.49 million. First Watch Restaurant Group had a net margin of 0.42% and a return on equity of 0.83%. The business’s quarterly revenue was up 20.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.01 earnings per share. On average, analysts anticipate that First Watch Restaurant Group, Inc. will post 0.32 EPS for the current year.

Insiders Place Their Bets

In other First Watch Restaurant Group news, Director William A. Kussell sold 6,165 shares of the business’s stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $17.00, for a total transaction of $104,805.00. Following the sale, the director directly owned 26,402 shares of the company’s stock, valued at $448,834. The trade was a 18.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 6.00% of the company’s stock.

Institutional Investors Weigh In On First Watch Restaurant Group

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of First Watch Restaurant Group by 15.0% in the 4th quarter. Vanguard Group Inc. now owns 3,320,929 shares of the company’s stock valued at $50,080,000 after purchasing an additional 432,634 shares during the period. Dimensional Fund Advisors LP increased its stake in First Watch Restaurant Group by 5.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,576,182 shares of the company’s stock valued at $38,849,000 after buying an additional 133,402 shares during the period. The Manufacturers Life Insurance Company lifted its position in First Watch Restaurant Group by 51.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,335,883 shares of the company’s stock worth $37,468,000 after buying an additional 796,191 shares in the last quarter. Lazard Asset Management LLC boosted its stake in shares of First Watch Restaurant Group by 13.4% during the 2nd quarter. Lazard Asset Management LLC now owns 2,281,137 shares of the company’s stock valued at $36,589,000 after buying an additional 269,726 shares during the period. Finally, JPMorgan Chase & Co. grew its holdings in shares of First Watch Restaurant Group by 1.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,213,754 shares of the company’s stock valued at $35,509,000 after acquiring an additional 39,648 shares in the last quarter. 96.11% of the stock is currently owned by institutional investors and hedge funds.

About First Watch Restaurant Group

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.