First Watch Restaurant Group (FWRG) AI Stock Analysis

• Market Cap: $989.33M
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 205.7
• Beta (1Y): 0.98
• Revenue Growth: 17.27%
• EPS Growth: -76.53%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.05
• Shares Outstanding: 61,032,104
• 10 Day Avg. Volume: 1,258,778
• 30 Day Avg. Volume: 1,127,344
• PEG Ratio: -2.12
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -91.12
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 22.63
• 1Y Price Target: $22.00
• Price Target Upside: 35.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.16
• Revenue Forecast (FY): $1.23B

• Rating: 58 Neutral
• Price Target: $17.50 ▲(7.96% Upside)

First Watch Restaurant Group's overall stock score is driven by strong revenue growth and operational improvements highlighted in the earnings call. However, significant challenges in profitability, high leverage, and overvaluation weigh heavily on the score.

Positive Factors

Revenue Growth

Strong revenue growth driven by new restaurant openings and positive same-restaurant sales indicates robust market demand and expansion potential.

Operational Efficiency

Improved operating margins reflect enhanced efficiency and cost management, supporting sustainable profitability in the long term.

Employee Satisfaction

High employee satisfaction can lead to better customer service and lower turnover, strengthening the company’s operational stability.

Negative Factors

Profitability Challenges

Low net profit margins indicate difficulty in converting revenue into profit, which could hinder long-term financial health and investment capacity.

Rising Debt Levels

Increased leverage raises financial risk and could limit future growth opportunities due to higher interest obligations and reduced financial flexibility.

Negative Free Cash Flow

Negative free cash flow suggests cash constraints, which may affect the company’s ability to invest in growth initiatives and manage unexpected expenses.

First Watch Restaurant Group Business Overview & Revenue Model

Company Description

First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in 28 states in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is headquartered in Bradenton, Florida.

How the Company Makes Money

First Watch Restaurant Group generates revenue through its chain of restaurants, primarily by selling food and beverages to customers dining in or ordering takeout. The company’s core revenue streams include sales from breakfast, brunch, and lunch menu items, which are priced at a premium due to the emphasis on fresh, high-quality ingredients and unique offerings. Additional revenue is derived from catering services and special events. FWRG also benefits from strategic partnerships with suppliers and distributors that provide quality ingredients at competitive prices, enhancing profit margins. The company's robust marketing strategies and brand loyalty initiatives contribute to repeat business and increased customer traffic, further driving revenue growth.

First Watch Restaurant Group Financial Statement Overview

Summary

First Watch Restaurant Group is experiencing revenue growth, but profitability and cash flow generation are areas of concern. High leverage poses financial risks, and the company needs to improve its margins and cash flow to strengthen its financial position.

Income Statement

First Watch Restaurant Group has shown consistent revenue growth, with a TTM revenue growth rate of 4.67%. However, profitability margins are relatively low, with a net profit margin of 0.49% and an EBIT margin of 1.23% in the TTM. The gross profit margin has decreased significantly from previous years, indicating potential cost pressures. Overall, while revenue is growing, profitability remains a concern.

Balance Sheet

The company has a high debt-to-equity ratio of 1.59 in the TTM, indicating significant leverage. Return on equity is low at 0.91%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 35.88%, suggesting moderate financial stability but potential risks due to high leverage.

Cash Flow

Operating cash flow is positive, but free cash flow is negative, with a free cash flow to net income ratio of -0.25 in the TTM. This indicates challenges in generating cash after capital expenditures. The operating cash flow to net income ratio of 0.75 suggests that cash generation from operations is not fully translating into net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.02B	891.55M	730.16M	601.19M	342.39M
Gross Profit	394.46M	792.81M	190.12M	139.53M	124.23M	29.88M
EBITDA	87.02M	98.38M	85.36M	52.05M	52.85M	-16.01M
Net Income	3.55M	18.93M	25.39M	6.91M	-2.11M	-49.68M
Balance Sheet
Total Assets	1.72B	1.51B	1.27B	1.10B	1.05B	1.01B
Cash, Cash Equivalents and Short-Term Investments	20.71M	33.31M	49.63M	49.67M	51.86M	38.85M
Total Debt	982.95M	809.55M	606.97M	507.35M	473.97M	637.90M
Total Liabilities	1.11B	918.97M	705.76M	581.31M	542.49M	686.65M
Stockholders Equity	607.31M	595.39M	561.28M	523.13M	504.43M	320.87M
Cash Flow
Free Cash Flow	-31.18M	-12.28M	10.65M	-393.00K	27.29M	-45.34M
Operating Cash Flow	130.38M	115.67M	95.34M	62.94M	62.97M	-18.36M
Investing Cash Flow	-216.50M	-206.65M	-123.37M	-63.11M	-35.68M	-26.97M
Financing Cash Flow	55.71M	74.33M	28.07M	-2.02M	-14.27M	73.31M

First Watch Restaurant Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FWRG, the sentiment is Negative. The current price of 16.21 is below the 20-day moving average (MA) of 17.21, below the 50-day MA of 17.18, and below the 200-day MA of 17.08, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FWRG.

First Watch Restaurant Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BJRI	74 Outperform	$874.56M	30.97	8.44%	―	3.85%	7.57%
PBPB	68 Neutral	―	―	19.65%	―	-1.72%	-70.31%
CAKE	66 Neutral	$2.59B	15.80	39.14%	2.08%	4.90%	27.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FWRG	58 Neutral	$989.33M	205.71	0.83%	―	17.27%	-76.53%
CBRL	55 Neutral	$585.22M	35.25	3.89%	3.54%	-1.61%	-58.09%
VENU	41 Neutral	$391.64M	-8.34	-40.00%	―	―	―

First Watch Restaurant Group Corporate Events

First Watch Completes Share Sale with Citigroup

On November 5, 2025, First Watch Restaurant Group, Inc. entered into an underwriting agreement with Citigroup Global Markets Inc. for the sale of 5,289,784 shares by selling shareholders. The offering, which closed on November 7, 2025, did not involve the company selling any shares or receiving proceeds, impacting the company’s financial structure and shareholder composition.

First Watch Reports Strong Q3 2025 Financial Results

First Watch Restaurant Group reported strong financial results for Q3 2025, with a 25.6% increase in total revenues and a net income of $3.0 million. The company opened 21 new restaurants and plans aggressive growth, projecting a robust finish to the year with adjusted EBITDA guidance at the high end of its previous range.