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

First Watch Restaurant Group (NASDAQ:FWRG) posted its quarterly earnings results on Tuesday. The company reported $0.04 earnings per share for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.01), FiscalAI reports. First Watch Restaurant Group had a return on equity of 2.87% and a net margin of 1.35%.The company had revenue of $354.67 million for the quarter, compared to analysts’ expectations of $351.57 million. During the same period in the prior year, the business earned $0.03 EPS. The business’s revenue for the quarter was up 15.2% on a year-over-year basis.

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 Stock Down 1.4%

NASDAQ FWRG traded down $0.17 during trading hours on Thursday, hitting $12.69. The company had a trading volume of 146,634 shares, compared to its average volume of 1,493,896. The firm’s 50 day moving average is $12.08 and its 200 day moving average is $12.80. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.29 and a quick ratio of 0.25. First Watch Restaurant Group has a fifty-two week low of $9.97 and a fifty-two week high of $19.53. The company has a market capitalization of $782.03 million, a price-to-earnings ratio of 43.76, a P/E/G ratio of 7.58 and a beta of 1.03.

Analyst Ratings Changes

A number of brokerages recently weighed in on FWRG. TD Cowen reiterated a “buy” rating and issued a $17.00 target price on shares of First Watch Restaurant Group in a report on Wednesday, June 3rd. Stifel Nicolaus set a $14.00 price target on First Watch Restaurant Group in a research note on Tuesday, May 5th. DA Davidson restated 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 lowered First Watch Restaurant Group from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Finally, Weiss Ratings raised First Watch Restaurant Group from a “sell (d)” rating to a “sell (d+)” rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, First Watch Restaurant Group presently has a consensus rating of “Moderate Buy” and an average target price of $18.67.

Institutional Investors Weigh In On First Watch Restaurant Group

A number of large investors have recently modified their holdings of the stock. State of Wyoming purchased a new position in First Watch Restaurant Group in the 4th quarter worth approximately $64,000. Kemnay Advisory Services Inc. purchased a new stake in shares of First Watch Restaurant Group during the fourth quarter valued at approximately $66,000. BNP Paribas Financial Markets lifted its position in shares of First Watch Restaurant Group by 61.9% during the second quarter. BNP Paribas Financial Markets now owns 4,375 shares of the company’s stock worth $70,000 after purchasing an additional 1,673 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of First Watch Restaurant Group by 17,042.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,657 shares of the company’s stock worth $85,000 after purchasing an additional 5,624 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in shares of First Watch Restaurant Group by 435.5% in the second quarter. Tower Research Capital LLC TRC now owns 7,277 shares of the company’s stock valued at $117,000 after purchasing an additional 5,918 shares during the period. Institutional investors and hedge funds own 96.11% of the company’s stock.

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.