First Watch Restaurant Group (NASDAQ:FWRG) Posts Earnings Results, Misses Expectations By $0.01 EPS

First Watch Restaurant Group (NASDAQ:FWRG) posted its quarterly earnings data on Tuesday. The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.01), FiscalAI reports. The firm had revenue of $354.67 million during the quarter, compared to analyst estimates of $351.57 million. First Watch Restaurant Group had a net margin of 1.38% and a return on equity of 2.85%. The firm’s revenue for the quarter was up 15.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.03 earnings per share.

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 Trading Down 1.4%

FWRG opened at $12.33 on Tuesday. First Watch Restaurant Group has a one year low of $9.97 and a one year high of $19.53. The stock has a market capitalization of $760.02 million, a PE ratio of 44.25, a P/E/G ratio of 7.61 and a beta of 1.03. The business’s 50 day moving average price is $12.03 and its 200 day moving average price is $12.86. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.25 and a current ratio of 0.29.

Analysts Set New Price Targets

FWRG has been the subject of a number of recent research reports. Stifel Nicolaus set a $14.00 target price on shares of First Watch Restaurant Group in a research report on Tuesday, May 5th. Benchmark cut their price objective on shares of First Watch Restaurant Group from $24.00 to $22.00 and set a “buy” rating for the company in a report on Monday, April 20th. Weiss Ratings lowered shares of First Watch Restaurant Group from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. DA Davidson restated a “buy” rating and issued a $17.00 price target on shares of First Watch Restaurant Group in a research report on Tuesday, April 28th. Finally, Stephens restated an “overweight” rating and issued a $21.00 target price on shares of First Watch Restaurant Group in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $18.78.

Institutional Investors Weigh In On First Watch Restaurant Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FWRG. State of Wyoming purchased a new position in shares of First Watch Restaurant Group during the 4th quarter worth $64,000. Kemnay Advisory Services Inc. purchased a new position in First Watch Restaurant Group during the fourth quarter worth about $66,000. BNP Paribas Financial Markets boosted its stake in 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 buying an additional 1,673 shares during the period. Northwestern Mutual Wealth Management Co. increased 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 valued at $85,000 after acquiring an additional 5,624 shares during the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in shares of First Watch Restaurant Group during the fourth quarter valued at about $111,000. Hedge funds and other institutional investors 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.