First Watch Restaurant Group's Market Performance and Outlook

Core Viewpoint - First Watch Restaurant Group is experiencing growth challenges despite a strong revenue increase, with cautious guidance for 2026 impacting market perception [1][3][4]. Group 1: Company Performance - First Watch reported a 20% increase in revenue and earnings per share of $0.24, which tripled analysts' expectations [3][6]. - The company achieved an 11% increase in store count and a 3.6% rise in same-store sales for the full year [4][6]. - The stock price has decreased by 20.52% to $12.32, with a market cap of approximately $751.92 million [5]. Group 2: Market Outlook - Piper Sandler maintained an "Overweight" rating for First Watch but lowered the price target from $22 to $19, indicating a more cautious outlook [2][6]. - The guidance for 2026 suggests a slowdown in revenue growth to 12% to 14% and same-store sales growth of 1% to 3% [4][6]. - CEO Chris Tomasso cited macroeconomic pressures affecting the entire restaurant sector as a reason for the cautious stance [5].