First Watch Restaurant Group (NASDAQ:FWRG) Issues Earnings Results, Beats Estimates By $0.16 EPS

First Watch Restaurant Group (NASDAQ:FWRG) posted its earnings results on Tuesday. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.08 by $0.16, Briefing.com reports. The company had revenue of $316.35 million for the quarter, compared to the consensus estimate of $317.49 million. First Watch Restaurant Group had a return on equity of 3.23% and a net margin of 1.59%.The company’s revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.01 earnings per share.

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

• Strong 2025 operating performance: Total revenue grew more than 20% and full-year same-restaurant sales rose ~3.6%, the company opened a record 64 restaurants (ending 2025 with 633 locations) and Q4 adjusted EBITDA increased 38.7% to $33.7 million.
• New-restaurant strength and pipeline: The 2025 restaurant class is tracking ~19% above underwriting, management entered five major new markets with up to a 155-unit opportunity, and the company reiterates long-term expansion toward a 2,200-unit opportunity.
• Menu and marketing initiatives to drive traffic: A systemwide rollout of a redesigned core menu (first major overhaul in ~10 years) plus expanded data-driven digital marketing—which produced several-hundred-basis-point traffic lifts in tests—will be scaled to the majority of the comp base in 2026.
• Cost and pricing headwinds for 2026: Management expects commodity inflation of 1%–3% and restaurant-level labor inflation of 3%–5%, elected not to take early-year pricing (guidance assumes ~2% blended pricing for the year), which could pressure margins if not offset.
• 2026 guidance and corporate items: The company guides same-restaurant sales +1%–3%, total revenue growth 12%–14%, adjusted EBITDA $132M–$140M and CapEx $150M–$160M; CFO Mel Hope will retire later this year with a planned transition and expanded equity awards will increase non-cash G&A charges.

First Watch Restaurant Group Stock Performance

Shares of FWRG stock traded up $0.45 during midday trading on Thursday, hitting $12.97. The company had a trading volume of 629,729 shares, compared to its average volume of 1,676,357. The stock has a market cap of $791.62 million, a price-to-earnings ratio of 41.84, a PEG ratio of 2.24 and a beta of 0.88. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.25 and a quick ratio of 0.21. The company’s 50 day simple moving average is $15.98 and its 200 day simple moving average is $16.79. First Watch Restaurant Group has a 52-week low of $12.16 and a 52-week high of $21.99.

Key First Watch Restaurant Group News

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

• Positive Sentiment: Q4 2025 results: revenue grew ~20% year-over-year and the quarter produced an EPS beat, showing underlying demand and execution. GlobeNewswire Release
• Positive Sentiment: Company is targeting 12%–14% revenue growth for fiscal 2026 and plans to invest in digital marketing and menu innovation, which could support longer-term unit growth and AUV improvement if execution matches the plan. MSN Article
• Positive Sentiment: Multiple brokerages maintained Buy/Overweight ratings even after cutting targets — a sign some analysts still see meaningful upside from current levels despite downgraded PTs. Benzinga Coverage
• Neutral Sentiment: Earnings call and transcript available for details on margin drivers, labor trends and marketing plans — useful for investors who want to judge whether 2026 guidance reflects temporary pressure or longer-term slowdown. Earnings Call Transcript
• Negative Sentiment: 2026 guidance disappointed: same-store sales are guided to slow to roughly 1%–3% and adjusted EBITDA margin guidance implies little operational leverage — investors are pricing lower growth and constrained margin expansion. Seeking Alpha: Risk Flagged
• Negative Sentiment: Analysts cut price targets across the board (examples: Citi to $21, Barclays to $17, Guggenheim/Stephens/TD Cowen trimmed targets), signaling more conservative expectations and contributing to near-term selling pressure. Benzinga PT Coverage

Insider Transactions at First Watch Restaurant Group

In other First Watch Restaurant Group news, Director William A. Kussell sold 6,165 shares of the company’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 completion of the transaction, the director owned 26,402 shares in the company, valued at approximately $448,834. This represents a 18.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 6.00% of the company’s stock.

Institutional Investors Weigh In On First Watch Restaurant Group

A number of hedge funds have recently added to or reduced their stakes in FWRG. Vanguard Group Inc. increased its position in First Watch Restaurant Group by 18.2% during the 3rd quarter. Vanguard Group Inc. now owns 2,888,295 shares of the company’s stock worth $45,173,000 after purchasing an additional 443,830 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of First Watch Restaurant Group by 5.5% in the fourth 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 in the last quarter. The Manufacturers Life Insurance Company grew its holdings in First Watch Restaurant Group by 51.7% during the second quarter. The Manufacturers Life Insurance Company now owns 2,335,883 shares of the company’s stock worth $37,468,000 after acquiring an additional 796,191 shares during the period. Lazard Asset Management LLC raised its position in First Watch Restaurant Group by 13.4% in the second quarter. Lazard Asset Management LLC now owns 2,281,137 shares of the company’s stock worth $36,589,000 after acquiring an additional 269,726 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in First Watch Restaurant Group by 7.5% in the fourth quarter. Bank of New York Mellon Corp now owns 2,011,613 shares of the company’s stock valued at $30,335,000 after acquiring an additional 140,760 shares during the period. Institutional investors and hedge funds own 96.11% of the company’s stock.

Analyst Ratings Changes

FWRG has been the topic of a number of recent research reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of First Watch Restaurant Group in a research note on Monday, December 29th. TD Cowen dropped their price objective on First Watch Restaurant Group from $21.00 to $18.00 and set a “buy” rating on the stock in a report on Tuesday. Wall Street Zen upgraded First Watch Restaurant Group from a “sell” rating to a “hold” rating in a research note on Saturday, November 8th. Piper Sandler reiterated an “overweight” rating and issued a $19.00 price target on shares of First Watch Restaurant Group in a research note on Tuesday. Finally, Guggenheim reduced their price objective on shares of First Watch Restaurant Group from $23.00 to $21.00 and set a “buy” rating for the company in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $20.08.

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.