First Watch Restaurant Group, Inc. (NASDAQ:FWRG) Stock Upgrade and Financial Performance Review
Mar 12, 2025 2:00 PM - Tony Dante
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- Benchmark upgraded NASDAQ:FWRG to a "Buy" rating and increased the price target from $24 to $26.
- Fiscal fourth-quarter results showed an EPS of 1 cent, missing estimates, but revenue exceeded expectations with a 7.6% year-over-year increase.
- Despite a 0.3% decline in same-restaurant sales and a 3% decrease in traffic, FWRG's stock price has shown resilience with a current price of $17.64.
First Watch Restaurant Group, Inc. (NASDAQ:FWRG) is a daytime dining restaurant chain known for its breakfast, brunch, and lunch offerings. The company operates numerous locations across the United States, focusing on fresh ingredients and a welcoming atmosphere. In the competitive restaurant industry, First Watch competes with other breakfast and brunch chains like IHOP and Denny's.
On March 12, 2025, Benchmark upgraded First Watch's stock to a "Buy" rating, with the stock priced at $16.83. Benchmark also increased the price target from $24 to $26. This upgrade suggests confidence in the company's future performance, despite recent challenges in earnings and same-restaurant sales.
First Watch's fiscal fourth-quarter results for 2024 showed an earnings per share (EPS) of 1 cent, missing the Zacks Consensus Estimate of 2 cents. This is a decline from the previous year's adjusted EPS of 4 cents. Despite this, the company's revenues exceeded expectations, reaching $263.3 million, a 7.6% increase year-over-year.
The revenue growth was driven by new restaurant openings and menu price increases. However, the company faced a 0.3% decline in same-restaurant sales and a 3% decrease in same-restaurant traffic. These challenges contributed to a 7% drop in First Watch's share price following the earnings announcement.
Currently, FWRG's stock is priced at $17.64, reflecting a 4.81% increase with a change of $0.81. The stock has fluctuated between $16.81 and $17.83 today. Over the past year, it reached a high of $25.98 and a low of $12.90. With a market capitalization of approximately $1.07 billion, First Watch remains a significant player in the restaurant industry.
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