First Watch Restaurant Group (NASDAQ:FWRG) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

First Watch Restaurant Group (NASDAQ:FWRG) released its earnings results on Tuesday. The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.01), FiscalAI reports. The business had revenue of $354.67 million during the quarter, compared to the consensus estimate of $351.57 million. First Watch Restaurant Group had a net margin of 1.38% and a return on equity of 2.85%. The business’s revenue was up 15.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.03 EPS.

Here are the key takeaways from First Watch Restaurant Group’s conference call:

• Second-quarter revenue rose 15.2% to $354.7 million, driven by 3.4% same-restaurant sales growth and continued contributions from new locations. Same-restaurant traffic was nearly flat but improved 160 basis points sequentially, turning positive in June.
• Marketing investments, menu innovation, and seasonal offerings are generating traction. Unaided brand awareness increased more than 50% since early 2025, while 17% of customers acquired through targeted campaigns have already returned for a second visit.
• First Watch opened 18 restaurants in the quarter and said its 2025 and 2026 new-restaurant classes are outperforming both existing units and underwriting targets. The company maintains a pipeline of more than 100 projects and expects to reach approximately 2,200 potential U.S. locations over time.
• Strong demand for premium beef offerings increased food costs by nearly 100 basis points year over year and led management to lower 2026 adjusted EBITDA guidance to $133 million-$136 million. The company expects the margin pressure to moderate after the current limited-time offering ends.
• Beginning in 2027, First Watch will target about 50 company-operated openings annually instead of maintaining a higher unit-growth rate, prioritizing self-funded expansion, balance-sheet strengthening, and positive free cash flow. Updated long-term targets call for 2%-4% same-restaurant sales growth, 10%-13% revenue growth, and 11%-14% adjusted EBITDA growth.

First Watch Restaurant Group Trading Down 2.4%

Shares of FWRG traded down $0.29 during mid-day trading on Tuesday, reaching $12.21. 196,458 shares of the company were exchanged, compared to its average volume of 1,478,245. The business has a 50 day simple moving average of $12.03 and a two-hundred day simple moving average of $12.86. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.25 and a current ratio of 0.29. The stock has a market capitalization of $752.44 million, a PE ratio of 44.00, a PEG ratio of 7.61 and a beta of 1.03. First Watch Restaurant Group has a 52 week low of $9.97 and a 52 week high of $19.53.

Institutional Trading of First Watch Restaurant Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. lifted its position in shares of First Watch Restaurant Group by 31.7% in the 4th quarter. Invesco Ltd. now owns 89,637 shares of the company’s stock worth $1,352,000 after purchasing an additional 21,576 shares during the period. XTX Topco Ltd acquired a new stake in shares of First Watch Restaurant Group during the fourth quarter worth $1,156,000. VARCOV Co. bought a new position in First Watch Restaurant Group during the fourth quarter worth $1,128,000. Twinbeech Capital LP bought a new position in First Watch Restaurant Group during the fourth quarter worth $205,000. Finally, Oxford Asset Management LLP bought a new position in First Watch Restaurant Group during the fourth quarter worth $249,000. Institutional investors and hedge funds own 96.11% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on FWRG shares. Wall Street Zen downgraded shares of First Watch Restaurant Group from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Benchmark dropped their price objective on shares of First Watch Restaurant Group from $24.00 to $22.00 and set a “buy” rating for the company in a research note on Monday, April 20th. Freedom Capital raised shares of First Watch Restaurant Group to a “strong-buy” rating in a research note on Wednesday, July 1st. Stifel Nicolaus set a $14.00 price target on shares of First Watch Restaurant Group in a report on Tuesday, May 5th. Finally, TD Cowen reiterated a “buy” rating and issued a $17.00 price target on shares of First Watch Restaurant Group in a research note on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $18.78.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc (NASDAQ: FWRG) operates a specialty daytime dining concept focused on breakfast, brunch and lunch. The company’s casual, full-service cafés emphasize fresh ingredients, made-to-order entrées and a seasonally driven menu that ranges from omelets and Benedicts to salads, skillets and afternoon sandwiches. First Watch positions itself as a daytime-only destination, with most locations opening early morning and closing by mid-afternoon.

Founded in 1983 by Ken Pendery and John Sullivan in Pacific Grove, California, First Watch began as a single café and gradually expanded through company-owned and select franchised locations.