First watch restaurant group’s CFO sells shares worth $134,698

Published 14/03/2025, 21:12
First watch restaurant group’s CFO sells shares worth $134,698

BRADENTON, FL—Hope H. Melville III, the Chief Financial Officer and Treasurer of First Watch Restaurant Group (LON:RTN), Inc. (NASDAQ:FWRG), a nearly $1 billion market cap restaurant chain currently trading above its InvestingPro Fair Value, recently executed a significant stock transaction. According to a recent SEC filing, Melville sold 8,013 shares of common stock on March 12 at a price of $16.81 per share, totaling approximately $134,698. The transaction comes as FWRG’s stock has declined about 14% over the past week.

This sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units, as mandated by the company’s policies. Consequently, this transaction was not a discretionary trade by Melville. The company maintains a Fair overall financial health score according to InvestingPro analysis, which offers comprehensive insights through its Pro Research Report, available for over 1,400 US stocks.

Additionally, on March 13, Melville acquired 48,721 restricted stock units, which will vest in three equal annual installments starting March 13, 2026. Following these transactions, Melville holds a total of 123,023 shares in the company, which has demonstrated strong revenue growth of nearly 14% over the last twelve months.

In other recent news, First Watch Restaurant Group Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.01, which exceeded the forecasted $0.0033. The company’s revenue reached $263.3 million, slightly surpassing projections and marking a 16.8% year-over-year increase. Adjusted EBITDA was reported at $24.3 million, which is nearly $5 million more than the previous year. Benchmark analyst Todd M. Brooks raised First Watch’s stock target to $26, maintaining a Buy rating, citing the company’s competitive edge and improving customer traffic trends. Similarly, BofA Securities increased the stock target to $28, also maintaining a Buy rating, while noting improvements in customer traffic patterns and strategic marketing initiatives. However, Jefferies analyst Andy Barish lowered the price target to $24, still endorsing a Buy rating, while highlighting the company’s fiscal year 2025 guidance for positive same-store sales growth and adjusted EBITDA between $124 million and $130 million. These developments reflect First Watch’s strategic efforts in marketing, operational efficiencies, and expansion plans, contributing to its performance and outlook.

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