Positive Outlook for First Watch Restaurant Group Amid Growth Opportunities and Strategic Initiatives

TD Cowen analyst Andrew Charles has maintained their bullish stance on FWRG stock, giving a Buy rating yesterday.

Andrew Charles has given his Buy rating due to a combination of factors that suggest potential growth and stability for First Watch Restaurant Group. Despite a recent miss in the first quarter and a reduction in the 2025 adjusted EBITDA guidance, Charles sees opportunities for the company to improve its margins and traffic in the latter half of the year, which could act as a catalyst for the stock’s performance.
Additionally, the strong economics of new store openings provide a solid foundation for the company’s long-term growth potential, with a total addressable market in the U.S. that supports the current stock price. While there are challenges such as commodity inflation and health insurance costs, many of these are considered transitory. The company’s strategic initiatives, like the ‘Surprise & Delight’ program, are being adjusted to manage costs effectively. Overall, these factors contribute to a positive outlook for First Watch, justifying the Buy rating.

According to TipRanks, Charles is a 5-star analyst with an average return of 9.6% and a 55.73% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as Wendy’s, Yum! Brands, and Shake Shack.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $24.00 price target.