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BRADENTON, Fla. - First Watch Restaurant Group, Inc. (NASDAQ: FWRG), known for its daytime dining concept, has completed the acquisition of 16 franchise-owned restaurants along with their development rights in North Carolina and South Carolina. The transaction, valued at $49 million, was finalized on a cash-free, debt-free basis. According to InvestingPro data, this acquisition adds to First Watch’s significant expansion efforts, with the company currently valued at $1.18 billion and generating over $1 billion in revenue over the last twelve months.
The company’s CEO & President, Chris Tomasso, stated that this acquisition strengthens corporate ownership on the East Coast and provides additional territories for organic growth. Tomasso also highlighted the integration of over 500 new employees into the corporate-owned system, emphasizing the importance of the company’s ’You First’ culture.
The acquired restaurants are situated in the Charlotte and Concord areas in North Carolina, and the Columbia and Greenville areas in South Carolina. With this latest move, First Watch has brought 64 franchised restaurants under corporate ownership through eight acquisitions since May 2023.
First Watch operates more than 570 restaurants across 30 states, offering a chef-driven menu that changes five times a year. The menu features a mix of classic favorites and unique offerings, such as the Quinoa Power Bowl and Lemon Ricotta Pancakes. The company has been recognized with numerous awards, including being named the #1 Most Loved Workplace in America by Newsweek and the Best Practice Institute in 2024 and topping Yelp’s list of the most-loved brands in the U.S. in 2023.
This press release contains forward-looking statements, including expectations regarding the performance and profitability of the newly acquired restaurants. With the company’s next earnings report due on May 6, 2025, investors seeking detailed analysis can access comprehensive valuation metrics and eight additional exclusive ProTips through InvestingPro’s in-depth research reports. However, these statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially.
The information for this article is based on a press release statement from First Watch Restaurant Group, Inc.
In other recent news, First Watch Restaurant Group reported a slight decline in same-store sales of 0.3% for the fourth quarter of 2024, with revenues reaching $263 million. Despite the dip in sales, the company achieved a restaurant-level operating margin of 18.8%, surpassing the consensus estimate of 17%. Earnings per share were in line with forecasts at $0.01, while adjusted EBITDA exceeded expectations at $24.3 million. In a strategic move, First Watch acquired three franchise-owned restaurants in Missouri, bringing them under direct company control to enhance growth and value creation. Analysts at Citi and Benchmark have both raised their price targets for First Watch, now set at $25 and $26 respectively, maintaining a Buy rating. TD Cowen also upgraded the stock from Hold to Buy, with a new price target of $22, citing expected improvements in same-store sales and profitability due to lower egg prices. Additionally, First Watch has adopted a new executive severance plan, offering specific benefits in cases of termination without cause or resignation for good reason. These developments, including strategic acquisitions and analyst upgrades, highlight First Watch’s ongoing efforts to strengthen its market position and enhance financial performance.
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