First Watch Restaurant Group (FWRG) AI Stock Analysis

• Market Cap: $960.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 239.6
• Beta (1Y): 0.79
• Revenue Growth: 14.53%
• EPS Growth: -83.26%
• Country: US
• Employees: 15,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.03
• Shares Outstanding: 61,023,970
• 10 Day Avg. Volume: 1,028,262
• 30 Day Avg. Volume: 1,090,225
• 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: 2.03
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 5.37
• Enterprise Value/Ebitda: 22.79
• 1Y Price Target: $21.61
• Price Target Upside: 37.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: $18.50 ▲(18.06% Upside)

First Watch Restaurant Group's overall score is driven by strong earnings call performance and positive financial growth. However, high valuation concerns and technical indicators suggest caution. The company's ability to manage debt and improve cash flow will be crucial for future performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful expansion and market penetration, supporting long-term business sustainability and competitive positioning.

Successful Expansion

Strategic expansion through new openings and acquisitions enhances market presence and operational scale, crucial for long-term growth.

Improved EBITDA Outlook

An improved EBITDA outlook reflects effective cost management and operational efficiency, bolstering financial health and investor confidence.

Negative Factors

High Debt Levels

High debt levels can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests challenges in generating surplus cash for reinvestment or debt reduction, affecting long-term financial stability.

Commodity Cost Challenges

Rising commodity costs can pressure profit margins, necessitating strategic pricing or cost management to maintain profitability.

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 primarily through the sale of food and beverages at its company-owned and franchised restaurants. The company capitalizes on its unique operating hours, focusing on daytime dining, which reduces labor and operational costs. Additionally, First Watch benefits from its strong brand presence and customer loyalty, which drive consistent traffic to its locations. The company also engages in strategic partnerships and marketing initiatives to enhance its brand visibility and attract new customers.

First Watch Restaurant Group Financial Statement Overview

Summary

First Watch Restaurant Group shows positive revenue growth and improving profitability metrics. However, high debt levels and negative free cash flow present potential risks. The company needs to focus on enhancing profit margins and managing debt effectively.

Income Statement

First Watch Restaurant Group has demonstrated consistent revenue growth, with a notable increase in total revenue over the past years. The gross profit margin has shown improvement, indicating efficient cost management. However, the net profit margin remains relatively low, suggesting room for improvement in cost control or pricing strategies. The EBIT and EBITDA margins indicate moderate operational efficiency, but there's potential for further enhancement.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating a higher reliance on debt financing, which could pose risks in volatile market conditions. Return on equity has improved, reflecting better utilization of equity for generating profits. The equity ratio suggests a decent level of equity financing, contributing to financial stability, but the high debt levels may still be a concern.

Cash Flow

First Watch Restaurant Group shows a positive trend in operating cash flow, which is commendable. However, the company has experienced negative free cash flow, primarily due to significant capital expenditures. The operating cash flow to net income ratio is strong, indicating good cash conversion efficiency, but the negative free cash flow to net income ratio suggests challenges in converting earnings into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.02B	891.55M	730.16M	601.19M	342.39M
Gross Profit	363.07M	792.81M	190.12M	139.53M	127.55M	29.88M
EBITDA	85.58M	98.38M	85.36M	54.73M	59.71M	-4.29M
Net Income	12.23M	18.93M	25.39M	6.91M	-2.11M	-49.68M
Balance Sheet
Total Assets	1.54B	1.51B	1.27B	1.10B	1.05B	1.01B
Cash, Cash Equivalents and Short-Term Investments	18.61M	33.31M	49.63M	49.67M	51.86M	38.85M
Total Debt	645.70M	809.55M	606.97M	507.35M	473.97M	637.90M
Total Liabilities	947.85M	918.97M	705.76M	581.31M	542.49M	686.65M
Stockholders Equity	596.29M	595.39M	561.28M	523.13M	504.43M	320.87M
Cash Flow
Free Cash Flow	-25.19M	-12.28M	10.65M	-393.00K	27.29M	-45.34M
Operating Cash Flow	110.83M	115.67M	95.34M	62.94M	62.97M	-18.36M
Investing Cash Flow	-211.26M	-206.65M	-123.37M	-63.11M	-35.68M	-26.97M
Financing Cash Flow	75.53M	74.33M	28.07M	-2.02M	-14.27M	73.31M

First Watch Restaurant Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 15.67 is below the 20-day moving average (MA) of 17.29, below the 50-day MA of 17.53, and below the 200-day MA of 17.94, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 29.43 is Positive, neither overbought nor oversold. The STOCH value of 14.45 is Positive, 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
CAKE	68 Neutral	2.74B	16.90	39.63%	1.99%	4.77%	38.24%
PBPB	68 Neutral	515.64M	47.84	69.01%	―	-1.72%	-70.31%
BJRI	67 Neutral	677.66M	25.24	7.12%	―	4.07%	-1.24%
FWRG	63 Neutral	$960.52M	239.60	0.69%	―	14.53%	-83.26%
CBRL	58 Neutral	975.52M	21.27	10.05%	2.28%	0.37%	12.99%
VENU	52 Neutral	585.53M	-12.32	-31.70%	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

First Watch Restaurant Group Corporate Events

First Watch Completes Share Sale Agreement with Barclays

On August 6, 2025, First Watch Restaurant Group, Inc. entered into an underwriting agreement with Barclays Capital Inc. and Goldman Sachs & Co. LLC for the sale of 5,000,000 shares by selling shareholders at $17.70 per share, which closed on August 8, 2025. The company did not sell any shares or receive proceeds from this offering, which was conducted under a prospectus supplement to a registration statement filed with the SEC.

First Watch Reports Q2 Revenue Growth and Expansion

First Watch Restaurant Group reported a 19.1% increase in total revenues for Q2 2025, reaching $307.9 million, and opened 17 new restaurants, marking its 600th location milestone. Despite a decrease in net income and adjusted EBITDA compared to the previous year, the company raised its annual EBITDA guidance, anticipating stronger profitability in the latter half of 2025, supported by positive same-restaurant sales and traffic growth.