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

First Watch Restaurant Group (NASDAQ:FWRG) issued its quarterly earnings data on Tuesday. The company reported ($0.04) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.02), Briefing.com reports. First Watch Restaurant Group had a net margin of 1.59% and a return on equity of 3.20%. During the same period in the prior year, the firm earned ($0.01) EPS. The business’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 Stock Performance

First Watch Restaurant Group stock traded up $0.61 during midday trading on Tuesday, reaching $12.82. The stock had a trading volume of 439,823 shares, compared to its average volume of 1,652,105. First Watch Restaurant Group has a 12 month low of $10.09 and a 12 month high of $19.53. The firm’s 50-day moving average price is $12.19 and its 200 day moving average price is $15.12. The firm has a market capitalization of $789.85 million, a PE ratio of 41.11, a P/E/G ratio of 3.53 and a beta of 1.11. The company has a quick ratio of 0.25, a current ratio of 0.29 and a debt-to-equity ratio of 0.43.

More First Watch Restaurant Group News

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

• Positive Sentiment: Revenue growth and beats — First Watch reported total revenues up ~17.3% year‑over‑year and beat revenue expectations, showing resilient demand and higher unit volumes for the quarter. Read More.
• Positive Sentiment: Company reaffirmed full‑year revenue guidance — management backed its FY2026 revenue outlook (helping reassure investors about the cadence for the year), which has supported the stock uptick. Read More.
• Positive Sentiment: Profitability metrics and growth investments — Adjusted EBITDA was $27.8M and the company opened 16 new system‑wide restaurants in Q1, indicating cash‑flow generation and continued unit growth potential. Read More.
• Neutral Sentiment: Results broadly in line with expectations — some outlets characterize Q1 as “in line” with consensus on the top line, which moderates volatility; the market reaction seems driven more by guidance confirmation than by a clear beat on EPS. Read More.
• Negative Sentiment: EPS miss and GAAP net loss — First Watch reported a GAAP net loss of $(2.7)M and EPS of $(0.04), missing consensus by ~$0.02, which highlights near‑term margin pressure and dilutes the headline earnings story. Read More.
• Negative Sentiment: Low margins and modest ROE — reported net margin (~1.6%) and return on equity (~3.2%) remain thin, suggesting limited near‑term earnings leverage despite revenue growth. Read More.

Analysts Set New Price Targets

FWRG has been the topic of several recent analyst reports. DA Davidson restated a “buy” rating and set a $17.00 price objective on shares of First Watch Restaurant Group in a research note on Tuesday, April 28th. 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 research note on Tuesday, February 24th. Zacks Research upgraded First Watch Restaurant Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, February 10th. Guggenheim dropped their price objective on First Watch Restaurant Group from $23.00 to $21.00 and set a “buy” rating on the stock in a research note on Wednesday, February 25th. Finally, Piper Sandler restated an “overweight” rating and set a $19.00 price objective on shares of First Watch Restaurant Group in a research note on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $19.58.

Insiders Place Their Bets

In other news, insider Matthew Eisenacher sold 2,760 shares of the company’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $12.52, for a total transaction of $34,555.20. Following the sale, the insider directly owned 67,223 shares in the company, valued at $841,631.96. This represents a 3.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Laura Anne Sorensen sold 4,732 shares of the company’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $12.59, for a total value of $59,575.88. Following the sale, the insider owned 239,050 shares in the company, valued at approximately $3,009,639.50. This represents a 1.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 68,013 shares of company stock worth $853,606 in the last ninety days. 6.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On First Watch Restaurant Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of First Watch Restaurant Group by 18.2% during the third quarter. Vanguard Group Inc. now owns 2,888,295 shares of the company’s stock valued at $45,173,000 after buying an additional 443,830 shares during the period. Dimensional Fund Advisors LP increased its position in shares of First Watch Restaurant Group by 5.5% during 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 during the period. The Manufacturers Life Insurance Company increased its position in shares of 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 valued at $37,468,000 after buying an additional 796,191 shares during the period. Lazard Asset Management LLC increased its position in shares of First Watch Restaurant Group by 13.4% during the second 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, Bank of New York Mellon Corp increased its position in shares of First Watch Restaurant Group by 7.5% during 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 buying an additional 140,760 shares during the period. 96.11% of the stock is currently owned by institutional investors.

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.