First Watch Restaurant Group (NASDAQ:FWRG) Shares Gap Down – Time to Sell?

First Watch Restaurant Group, Inc. (NASDAQ:FWRG)’s stock price gapped down before the market opened 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 traded.

Key Headlines 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.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on FWRG shares. Wall Street Zen raised First Watch Restaurant Group from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Weiss Ratings restated a “hold (c-)” rating on shares of First Watch Restaurant Group in a report on Monday, December 29th. Barclays reduced their target price on shares of 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, Zacks Research raised shares of First Watch Restaurant Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, February 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average 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 company has a debt-to-equity ratio of 0.41, a quick ratio of 0.21 and a current ratio of 0.25. The firm has a market capitalization of $836.11 million, a P/E ratio of 171.88, a P/E/G ratio of 2.90 and a beta of 0.88.

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

Insider Transactions at First Watch Restaurant Group

In related news, Director William A. Kussell sold 6,165 shares of the firm’s stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $17.00, for a total value of $104,805.00. Following the transaction, the director directly owned 26,402 shares in the company, valued at approximately $448,834. This trade represents a 18.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 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 bought and sold shares of FWRG. Vanguard Group Inc. increased its stake in shares of First Watch Restaurant Group by 15.0% in the fourth quarter. Vanguard Group Inc. now owns 3,320,929 shares of the company’s stock worth $50,080,000 after purchasing an additional 432,634 shares during the period. Dimensional Fund Advisors LP boosted its stake in First Watch Restaurant Group by 5.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,576,182 shares of the company’s stock valued at $38,849,000 after purchasing an additional 133,402 shares during the period. The Manufacturers Life Insurance Company grew its holdings 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 valued at $37,468,000 after buying an additional 796,191 shares during the last quarter. Lazard Asset Management LLC increased its position in First Watch Restaurant Group by 13.4% in the 2nd quarter. Lazard Asset Management LLC now owns 2,281,137 shares of the company’s stock worth $36,589,000 after buying an additional 269,726 shares during the period. Finally, JPMorgan Chase & Co. lifted its holdings in shares of First Watch Restaurant Group by 1.8% during the second quarter. JPMorgan Chase & Co. now owns 2,213,754 shares of the company’s stock worth $35,509,000 after buying an additional 39,648 shares during the last quarter. 96.11% of the stock is currently owned by institutional investors.

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.