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BRADENTON, Fla. - First Watch Restaurant Group, Inc. (NASDAQ: FWRG), recognized for its daytime dining, has acquired three franchise-owned restaurants along with their development rights in Missouri. The move, announced today, brings the Lee’s Summit, West Columbia, and South Columbia locations under the direct control of the company. The acquired eateries have been operational for the last five years and have established strong community ties, according to First Watch CEO and President Chris Tomasso. The company, currently valued at $1.07 billion, has demonstrated strong revenue growth of nearly 14% over the last twelve months, according to InvestingPro data.
This acquisition is part of First Watch’s strategy for growth and value creation, with the development rights highlighting opportunities for organic expansion in Missouri. Since May 2023, First Watch has integrated a total of 48 franchised restaurants through seven acquisitions. Further details on the transaction will be shared when the company reports its first fiscal quarter results, which concluded on March 30, 2025. The stock has shown recent momentum with an 8.67% gain over the past week, though InvestingPro analysis indicates the shares are trading above their Fair Value, with a P/E ratio of 58.17.
First Watch is known for its made-to-order breakfast, brunch, and lunch offerings, featuring fresh ingredients and a rotating chef-driven menu. The brand has received numerous local accolades for its dining experience, including "Best Breakfast" and "Best Brunch" awards. The restaurant group has been recognized as the #1 Most Loved Workplace® in America by Newsweek and the Best Practice Institute in 2024 and topped Yelp’s list of the most-loved brands in the U.S. in 2023.
The company operates over 570 restaurants across 30 states, offering signature dishes like the Quinoa Power Bowl and Lemon Ricotta Pancakes. Despite the positive outlook, the press release also includes forward-looking statements that are subject to risks and uncertainties that could impact actual results.
The acquisition is seen as a strategic step for First Watch in strengthening its market presence and leveraging potential growth in the Missouri area. The information regarding the acquisition is based on a press release statement from First Watch Restaurant Group, Inc.
In other recent news, First Watch has reported its fourth-quarter 2024 earnings, revealing a slight same-store sales decline of 0.3% and revenues of $263 million. The restaurant-level operating margin of 18.8% exceeded expectations, driven by labor efficiency and reduced expenses. Adjusted EBITDA came in at $24.3 million, surpassing the anticipated $23.4 million, while earnings per share matched forecasts at $0.01. Analysts have shown varying levels of optimism, with Benchmark raising its price target to $26 and BofA Securities lifting it to $28, both maintaining a Buy rating. TD Cowen also upgraded First Watch from Hold to Buy, setting a new price target of $22, citing improved marketing and declining egg prices as factors for potential profitability. However, Jefferies adjusted its price target down to $24 but maintained a Buy rating, emphasizing the company’s strategic focus on marketing and technology. In a move to align with industry standards, First Watch has adopted a new executive severance plan, offering benefits for executives in cases of termination without cause. These developments highlight a period of strategic adjustments and optimistic forecasts for First Watch.
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