First Watch Restaurant Group (NASDAQ:FWRG) Sets New 12-Month Low Following Analyst Downgrade

Shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG) reached a new 52-week low during mid-day trading on Wednesday after Citigroup lowered their price target on the stock from $26.00 to $21.00. Citigroup currently has a buy rating on the stock. First Watch Restaurant Group traded as low as $12.17 and last traded at $12.32, with a volume of 10350174 shares. The stock had previously closed at $15.50.

A number of other equities research analysts have also issued reports on FWRG. Piper Sandler reissued an “overweight” rating and set a $19.00 price target on shares of First Watch Restaurant Group in a research note on Tuesday. Barclays lowered their target price on shares of First Watch Restaurant Group from $19.00 to $17.00 and set an “overweight” rating for the company in a research note on Wednesday. Zacks Research upgraded shares of First Watch Restaurant Group from a “strong sell” rating to a “hold” rating in a research note 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. Finally, Stephens cut their price target on First Watch Restaurant Group from $24.00 to $21.00 and set an “overweight” rating on the stock in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, First Watch Restaurant Group currently has an average rating of “Moderate Buy” and an average target price of $20.08.

Insider Buying and Selling

In other news, Director William A. Kussell sold 6,165 shares of the company’s stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $17.00, for a total value of $104,805.00. Following the transaction, the director owned 26,402 shares of the company’s stock, valued at $448,834. This represents a 18.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 6.00% of the stock is owned by corporate insiders.

Key Headlines Impacting First Watch Restaurant Group

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

• Positive Sentiment: Q4 results showed an earnings beat and healthy top-line growth: management reported EPS above consensus and revenue roughly in line while revenue grew ~20% year-over-year, signaling underlying demand and improving profitability versus the prior-year quarter. Article Link
• Positive Sentiment: Corporate investor outreach: First Watch will participate in three investor conferences in March, increasing management access to investors and providing visible near-term catalysts (presentations/Q&A) that can help rejustify valuation if management delivers on guidance. Article Link
• Neutral Sentiment: Analysts continue to rate the stock positively: several firms (Citigroup, Guggenheim, Stephens, Barclays) maintained Buy/Overweight stances even after updating models — this supports a constructive narrative but leaves upside tied to execution against guidance. Benzinga Summary
• Negative Sentiment: Multiple price-target cuts: Citi cut its PT to $21, Barclays to $17, Guggenheim to $21 and Stephens to $21. Those reductions trim the implied upside and reflect more cautious near-term expectations. Price Target Coverage
• Negative Sentiment: Guidance and valuation concerns: a recent critique flagged that FY2026 guidance implies slower same-store sales (1–3%) and no margin leverage, while the stock still trades at a stretched P/E — raising the risk that upside is limited absent acceleration or margin improvement. Seeking Alpha Analysis

Hedge Funds Weigh In On First Watch Restaurant Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Stephens Investment Management Group LLC grew its position in shares of First Watch Restaurant Group by 21.2% during the third quarter. Stephens Investment Management Group LLC now owns 932,064 shares of the company’s stock worth $14,577,000 after acquiring an additional 163,102 shares during the last quarter. Catalyst Funds Management Pty Ltd acquired a new stake in First Watch Restaurant Group during the 2nd quarter worth $306,000. Armistice Capital LLC acquired a new position in First Watch Restaurant Group in the second quarter valued at $5,614,000. Geode Capital Management LLC increased its stake in First Watch Restaurant Group by 4.2% in the second quarter. Geode Capital Management LLC now owns 1,022,752 shares of the company’s stock valued at $16,407,000 after purchasing an additional 40,823 shares during the period. Finally, Loomis Sayles & Co. L P purchased a new stake in shares of First Watch Restaurant Group in the second quarter valued at about $18,350,000. Hedge funds and other institutional investors own 96.11% of the company’s stock.

First Watch Restaurant Group Stock Up 5.0%

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.29 and a quick ratio of 0.21. The firm’s 50 day moving average price is $15.90 and its two-hundred day moving average price is $16.76. The firm has a market cap of $803.99 million, a price-to-earnings ratio of 42.42, a P/E/G ratio of 2.42 and a beta of 0.88.

First Watch Restaurant Group (NASDAQ:FWRG) last announced its quarterly earnings data on Tuesday, February 24th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.16. The company had revenue of $316.35 million for the quarter, compared to analysts’ expectations of $317.49 million. First Watch Restaurant Group had a net margin of 1.59% and a return on equity of 3.20%. First Watch Restaurant Group’s revenue was up 20.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.01 EPS. As a group, sell-side analysts forecast that First Watch Restaurant Group, Inc. will post 0.32 earnings per share for the current fiscal year.

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.