Acquisition Marks Second Largest Franchisee Deal in First Watch’s History, Underscores Long-term Growth StrategyBRADENTON, Fla., April 28, 2025 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (together with its subsidiaries “First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today completed its previously announced acquisition of 16 of its franchise-owned restaurants and corresponding development rights in North Carolina and South Ca ...

Boylston St. restaurant signals Daytime Dining leader’s continued New England expansion First Watch to bring flagship location to downtown Boston First Watch will open its first downtown Boston location at 777 Boylston St., marking the company’s continued expansion in New England. BOSTON, April 23, 2025 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (“First Watch” or the “Company”), the leading daytime restaurant serving breakfast, brunch and lunch, announced it will open its first ...

First Watch Restaurant Group, Inc. (FWRG) acquired three franchise-owned restaurants in Missouri, along with the development rights for the area. The move is expected to support the company’s growth strategy through increased control over operations and future expansion.The company will share more details about the transaction when it announces results for the fiscal first quarter ended March 30, 2025.FWRG Bolsters Portfolio With Latest AcquisitionsThe company added Lee’s Summit, West Columbia and South Col ...

Latest Franchisee Deal Underscores Long-term Growth StrategyBRADENTON, Fla., April 14, 2025 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (together with its subsidiaries “First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today announced the acquisition of three of its franchise-owned restaurants and corresponding development rights in Missouri. "We’re proud to welcome the Lee’s Summit, West Columbia and South Columbia restaurant t ...

First Watch Restaurant Group TodayFWRGFirst Watch Restaurant Group$18.42 +0.51 (+2.85%) 52-Week Range$12.90▼$25.98P/E Ratio55.82Price Target$22.45Add to WatchlistFirst Watch Restaurant Group NASDAQ: FWRG is a first-rate small-cap growth stock on track to triple in size over the next ten years. The company stands out among restaurants in the sit-down breakfast category, serving above-average-quality traditional breakfast alongside an eclectic menu of appetizing choices. Customer favorites include the biscui ...

Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Company Analysis - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]

First Watch Restaurant Group, Inc. (FWRG) reported fourth-quarter fiscal 2024, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year while the bottom line declined. Following the results, the company’s shares fell 7% yesterday.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.FWRG’s Q4 Earnings & RevenuesFor the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 1 cent, which missed the Zac ...

Core Insights - First Watch Restaurant Group, Inc. (FWRG) reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.02 per share, representing a 50% earnings surprise [1] - The company posted revenues of $263.29 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.43% and showing an increase from $244.63 million year-over-year [2] - The stock has lost approximately 2.7% since the beginning of the year, while the S&P 500 has declined by 4.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $278.05 million, and for the current fiscal year, it is $0.44 on revenues of $1.17 billion [7] - The estimate revisions trend for First Watch Restaurant Group is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Retail - Restaurants industry is currently in the top 35% of over 250 Zacks industries, suggesting that companies in this sector are likely to outperform those in the bottom 50% [8] - Darden Restaurants, a peer in the same industry, is expected to report quarterly earnings of $2.82 per share, reflecting a year-over-year change of +7.6%, with revenues anticipated to be $3.22 billion, up 8.2% from the previous year [9][10]

First Watch Restaurant Group, Inc. (NASDAQ:FWRG) Q4 2024 - Earnings Conference Call March 11, 2025 8:00 AM ET Company Participants Steven Marotta - VP, IR Chris Tomasso - President and CEO Mel Hope - CFO Conference Call Participants Jeffrey Bernstein - Barclays Andrew Charles - TD Cowen Sara Senatore - Bank of America Andy Barish - Jefferies Jim Salera - Stephens Gregory Francfort - Guggenheim Securities Brian Vaccaro - Raymond James Operator Thank you for standing by, and welcome to the First Watch Restaur ...

Restaurant Operations and Growth - As of December 29, 2024, the company operated a total of 572 restaurants across 29 states, with 489 being company-owned and 83 franchise-owned[15]. - In 2024, the company opened 50 new system-wide restaurants across 19 states, continuing its growth strategy targeting low double-digit annual percentage growth[20]. - The company acquired 22 operating restaurants from franchisees in 2024 and has agreements to acquire an additional 19 restaurants[22]. - The company has a robust growth plan with over 100 new restaurants in the development pipeline, necessitating a strong talent bench for general managers[45]. - As of December 29, 2024, the company had 11 franchisees operating 83 restaurants, with franchisees obligated to develop 29 new restaurants[36]. - The total number of franchise-owned restaurants is 83, which represents approximately 14.5% of the total restaurant count[195]. - The company has no company-owned restaurants in states like Arkansas, Louisiana, and Utah, indicating potential areas for expansion[195]. - The company may consider further market expansion in states with fewer locations to enhance its footprint[195]. Financial Performance and Projections - The average unit volume per restaurant is projected to be $2.2 million in 2024, operating only 7.5 hours per day[14]. - Same-restaurant sales growth is critical for profitability, and the company may not achieve expected growth rates in future periods[82]. - The profitability of new restaurants is uncertain, with initial operating profit margins typically lower during the first 12 months of operation[88]. - The company recorded a charge of $0.8 million for estimated probable losses related to unclaimed gift card balances in Q4 2023[122]. - A payment of $0.7 million was made to the State of Delaware to resolve escheat matters concerning unclaimed gift card balances[122]. - The principal amount of the company's term loans outstanding was $193.8 million as of December 29, 2024, which could significantly affect its business and financial condition[163]. - The company does not anticipate paying any dividends on its common stock in the foreseeable future, as it intends to use cash flow for business growth[181]. - The company may require additional capital for growth, which may not be available on favorable terms, impacting expansion opportunities[187]. Customer Engagement and Marketing - The company has gathered customer information for over 17.9 million unique customer profiles, with 7.7 million opting for direct communication[28]. - The alcohol menu is offered in about 90% of system-wide restaurants as of December 29, 2024, reflecting the company's culinary innovation[28]. - Significant investments are being made in digital marketing initiatives to enhance customer awareness and loyalty across multiple digital channels[110]. - The company heavily relies on social media for marketing, necessitating continuous innovation to maintain customer engagement and brand relevance[110]. Employee and Workplace Culture - The company employs over 15,000 restaurant employees, with no employees part of a collective bargaining agreement[29]. - More than 85% of the 510 employees promoted to general manager at corporate-owned restaurants since 2022 were promoted from within[44]. - The "You First" Emergency Assistance Fund has provided over $1 million in tax-free hardship grants to employees since its inception[41]. - The company operates on a "No Nights Ever" model, allowing employees to enjoy evenings with family, contributing to improved work-life balance[39]. - Maintaining corporate culture is critical for the company's success, and failure to do so could adversely impact operations and employee retention[131]. - The restaurant industry is experiencing aggressive competition for talent, leading to wage inflation and pressure to improve employee benefits[130]. Supply Chain and Cost Management - The company is experiencing significant increases in food costs, particularly for eggs, coffee, and avocados, due to supply chain disruptions and climate impacts[85]. - There is a reliance on a small number of suppliers for a substantial amount of food and coffee, increasing vulnerability to supply chain disruptions[70]. - The company faced supply chain disruptions in January 2024 due to a strike at its broad-line distributor, leading to increased costs and delays in food deliveries[104]. - The company sources nearly all pork from two suppliers, eggs from one supplier, and coffee from one supplier, creating potential risks for supply shortages[105]. Regulatory and Compliance Risks - The company faces risks related to compliance with nutritional disclosure laws, which could be costly and time-consuming[72]. - The company is subject to evolving privacy laws, including the California Consumer Privacy Act, which may increase compliance costs and legal liabilities[117]. - The company is subject to extensive federal, state, and local laws and regulations, which could adversely affect its results of operations if not complied with[152]. - Legal and regulatory risks related to employment and labor laws could result in substantial damages or settlement costs[135]. Financial and Market Risks - The company may face adverse impacts from economic downturns, geopolitical tensions, and inflation affecting consumer discretionary spending[70]. - Increased labor and healthcare costs due to regulatory changes could adversely affect financial performance[72]. - The company faces risks related to "dram shop" statutes, which could result in significant judgments and settlements that may not be covered by insurance[151]. - The market price of the common stock could decline significantly due to substantial sales by Advent, affecting capital raising efforts[184]. - The company's quarterly results may fluctuate significantly due to seasonality, potentially impacting stock price and investor expectations[182]. Cybersecurity and Technology - The company maintains a cybersecurity program and conducts annual risk assessments, but any breaches could have a material adverse effect on operations[192]. - The rapid evolution of artificial intelligence technologies may impact customer expectations and increase cybersecurity risks[112]. - The company faces risks related to cybersecurity, with potential interruptions in operations due to system failures or breaches, which could materially affect financial results[111]. Franchise Operations and Challenges - The company has limited control over franchisee operations, which could result in inconsistencies in service and quality, impacting brand reputation[101]. - As of December 29, 2024, 15% of system-wide restaurants were franchised, indicating a reliance on franchisee performance for overall financial health[100]. - The company’s restaurants are geographically concentrated in the southeast U.S., which may pose challenges when entering new markets[76]. Strategic and Competitive Positioning - The restaurant industry is highly competitive, with the company positioned to compete effectively due to its focus on quality breakfast, brunch, and lunch experiences[52]. - Competition in the restaurant industry is intense, with many competitors having greater financial and marketing resources, which could adversely affect customer traffic and sales[92]. - The company emphasizes high food quality and safety, with regular inspections and a commitment to operational excellence[27].