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

First Watch Restaurant Group, Inc. (NASDAQ:FWRG)’s share 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.

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

Insider Activity at First Watch Restaurant Group

In related news, Director William A. Kussell sold 6,165 shares of First Watch Restaurant Group stock in a transaction 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 completion of the transaction, the director owned 26,402 shares of the company’s stock, valued at $448,834. This trade represents a 18.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 6.00% of the company’s stock.

More First Watch Restaurant Group News

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Jones Financial Companies Lllp bought a new stake in shares of First Watch Restaurant Group during the 3rd quarter valued at about $30,000. First Horizon Advisors Inc. increased its holdings in First Watch Restaurant Group by 207.6% in the second quarter. First Horizon Advisors Inc. now owns 1,950 shares of the company’s stock worth $31,000 after purchasing an additional 1,316 shares in the last quarter. State of Wyoming acquired a new position in First Watch Restaurant Group in the fourth quarter valued at approximately $64,000. Kemnay Advisory Services Inc. bought a new position in shares of First Watch Restaurant Group during the 4th quarter worth approximately $66,000. Finally, BNP Paribas Financial Markets grew its position in shares of First Watch Restaurant Group by 61.9% during the 2nd quarter. BNP Paribas Financial Markets now owns 4,375 shares of the company’s stock worth $70,000 after buying an additional 1,673 shares during the period. 96.11% of the stock is owned by institutional investors and hedge funds.

First Watch Restaurant Group Stock Down 20.5%

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’s 50 day moving average price is $16.06 and its two-hundred day moving average price is $16.82. The company has a market cap of $751.89 million, a P/E ratio of 154.02, a price-to-earnings-growth ratio of 2.82 and a beta of 0.88.

First Watch Restaurant Group (NASDAQ:FWRG) last issued its 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 business had revenue of $316.35 million for the quarter, compared to analyst estimates of $317.49 million. During the same period in the prior year, the firm earned $0.01 earnings per share. First Watch Restaurant Group’s revenue was up 20.2% on a year-over-year basis. Equities research analysts anticipate that First Watch Restaurant Group, Inc. will post 0.32 EPS for the current fiscal year.

First Watch Restaurant Group Company Profile

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.