First Watch can drive ‘solidly’ positive comps with pricing, says Raymond James

Restaurant stocks have sharply outperformed year to date on a January comp rebound, optimism around an easier first-half setup, and significant short covering, despite expectations for mixed Q4 results due to softer demand, Raymond James tells investors in a research note. The firm says a top long idea is Strong Buy-rated First Watch Restaurant (FWRG), and is optimistic that pricing and new local marketing initiatives can drive solidly positive comps in 2026.