First Watch Restaurant Group (NASDAQ:FWRG) Sets New 1-Year Low on Analyst Downgrade

First Watch Restaurant Group, Inc. (NASDAQ:FWRG)’s stock price reached a new 52-week low during mid-day trading on Wednesday after TD Cowen lowered their price target on the stock from $21.00 to $18.00. TD Cowen currently has a buy rating on the stock. First Watch Restaurant Group traded as low as $12.17 and last traded at $12.32, with a volume of 10350174 shares changing hands. The stock had previously closed at $15.50.

Several other analysts have also issued reports on the company. Barclays dropped their price objective on First Watch Restaurant Group from $21.00 to $19.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 7th. Weiss Ratings restated a “hold (c-)” rating on shares of First Watch Restaurant Group in a research note on Monday, December 29th. Zacks Research raised First Watch Restaurant Group from a “strong sell” rating to a “hold” rating in a report on Tuesday, February 10th. Finally, Wall Street Zen raised shares of First Watch Restaurant Group from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, First Watch Restaurant Group currently has a consensus rating of “Moderate Buy” and an average price target of $20.55.

Insiders Place Their Bets

In other First Watch Restaurant Group news, Director William A. Kussell sold 6,165 shares of the stock in a transaction that occurred on Thursday, January 22nd. The shares were sold at an average price of $17.00, for a total transaction of $104,805.00. Following the transaction, the director owned 26,402 shares in the company, valued at $448,834. This represents a 18.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 6.00% of the stock is owned by company insiders.

Trending Headlines about First Watch Restaurant Group

Here are the key news stories impacting First Watch Restaurant Group this week:

• Positive Sentiment: Q4 beat on EPS and strong year-over-year revenue growth — First Watch reported $0.24 EPS vs. a $0.08 consensus and revenue grew ~20.2% year-over-year, signaling demand resilience. Zacks: Tops Q4 Earnings
• Positive Sentiment: Management set a 2026 revenue growth target of 12%–14% and highlighted investments in digital marketing and menu innovation to drive comp growth and new unit sales. These are growth initiatives that could drive top-line acceleration if execution is effective. MSN: 12–14% Target
• Neutral Sentiment: FY2026 revenue guidance was reiterated/anchored around ~$1.4B (in line with consensus), which removes upside surprise risk but also limits immediate positive catalysts. GlobeNewswire: 2026 Outlook
• Negative Sentiment: Revenue slightly missed the street (~$316.4M vs. ~$317.5M expected) and investors focused on margin pressure from planned marketing/menu investments, prompting profit-growth concerns despite the EPS beat. Yahoo Finance: Earnings Transcript
• Negative Sentiment: Leadership and sentiment shocks: CFO Mel Hope announced retirement, and an analyst (TD Cowen) lowered its price target (from $21 to $18) — both items can increase uncertainty and selling pressure. GlobeNewswire: CFO Retirement Benzinga: TD Cowen PT Cut
• Negative Sentiment: Heavy intraday volume and media coverage of the miss/mixed outlook amplified selling; technicals (trading below the 50- and 200-day averages and near the 1-year low) likely accelerated declines. MSN: Why Shares Are Plunging

Hedge Funds Weigh In On First Watch Restaurant Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp bought a new position in First Watch Restaurant Group in the third quarter valued at about $30,000. First Horizon Advisors Inc. boosted its stake in shares of First Watch Restaurant Group by 207.6% in the 2nd quarter. First Horizon Advisors Inc. now owns 1,950 shares of the company’s stock valued at $31,000 after purchasing an additional 1,316 shares in the last quarter. State of Wyoming bought a new stake in shares of First Watch Restaurant Group during the 4th quarter valued at approximately $64,000. Kemnay Advisory Services Inc. acquired a new position in First Watch Restaurant Group during the 4th quarter worth approximately $66,000. Finally, BNP Paribas Financial Markets lifted its stake in First Watch Restaurant Group by 61.9% in the 2nd quarter. BNP Paribas Financial Markets now owns 4,375 shares of the company’s stock valued at $70,000 after purchasing an additional 1,673 shares during the last quarter. 96.11% of the stock is owned by institutional investors and hedge funds.

First Watch Restaurant Group Stock Performance

The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.21 and a current ratio of 0.25. The firm has a market cap of $751.89 million, a P/E ratio of 154.02, a P/E/G ratio of 2.82 and a beta of 0.88. The company’s 50 day moving average is $16.06 and its 200 day moving average is $16.82.

First Watch Restaurant Group (NASDAQ:FWRG) last announced its quarterly earnings results on Tuesday, February 24th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.08 by $0.16. First Watch Restaurant Group had a net margin of 0.42% and a return on equity of 0.83%. The company had revenue of $316.35 million during the quarter, compared to the consensus estimate of $317.49 million. During the same period in the prior year, the business earned $0.01 earnings per share. The company’s revenue for the quarter was up 20.2% compared to the same quarter last year. As a group, equities analysts predict that First Watch Restaurant Group, Inc. will post 0.32 earnings per share for the current fiscal year.

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.