Dimensional Fund Advisors LP Buys 508,704 Shares of First Watch Restaurant Group, Inc. $FWRG

Key Points

• Dimensional Fund Advisors increased its First Watch stake by 19.7%, purchasing 508,704 shares to own 3.08 million shares, or approximately 5.01% of FWRG. Institutional investors collectively hold 96.11% of the company.
• First Watch reported second-quarter revenue of $354.7 million, up 15.2% year over year and above estimates, but EPS of $0.04 missed consensus. Same-restaurant sales increased 3.4%, while net margin remained thin at 1.38%.
• Management maintained 2026 revenue guidance of about $1.4 billion and plans to open 50 company-operated restaurants annually beginning in 2027. Analysts have a “Moderate Buy” consensus rating with an average price target of $18.78, compared with the stock’s reported price of $12.68.

Dimensional Fund Advisors LP raised its stake in shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG - Free Report) by 19.7% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 3,084,886 shares of the company's stock after buying an additional 508,704 shares during the quarter. Dimensional Fund Advisors LP owned about 5.01% of First Watch Restaurant Group worth $32,328,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Royal Bank of Canada boosted its stake in First Watch Restaurant Group by 67.3% during the 1st quarter. Royal Bank of Canada now owns 54,267 shares of the company's stock worth $903,000 after acquiring an additional 21,830 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of First Watch Restaurant Group by 31.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,766 shares of the company's stock valued at $379,000 after acquiring an additional 5,497 shares during the last quarter. Legal & General Group Plc raised its holdings in First Watch Restaurant Group by 1.6% during the second quarter. Legal & General Group Plc now owns 45,531 shares of the company's stock worth $730,000 after acquiring an additional 724 shares in the last quarter. Rhumbline Advisers boosted its position in First Watch Restaurant Group by 45.8% during the second quarter. Rhumbline Advisers now owns 73,882 shares of the company's stock valued at $1,185,000 after purchasing an additional 23,205 shares during the last quarter. Finally, American Century Companies Inc. boosted its position in First Watch Restaurant Group by 43.4% during the second quarter. American Century Companies Inc. now owns 72,166 shares of the company's stock valued at $1,158,000 after purchasing an additional 21,846 shares during the last quarter. 96.11% of the stock is owned by institutional investors.

First Watch Restaurant Group Price Performance

NASDAQ:FWRG opened at $12.68 on Wednesday. The company has a market cap of $781.85 million, a P/E ratio of 45.29, a P/E/G ratio of 7.41 and a beta of 1.03. The firm's fifty day moving average price is $12.05 and its two-hundred day moving average price is $12.83. First Watch Restaurant Group, Inc. has a one year low of $9.97 and a one year high of $19.53. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.29 and a quick ratio of 0.25.

First Watch Restaurant Group (NASDAQ:FWRG - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.01). First Watch Restaurant Group had a net margin of 1.38% and a return on equity of 2.85%. The firm had revenue of $354.67 million during the quarter, compared to the consensus estimate of $351.57 million. During the same quarter last year, the firm earned $0.03 earnings per share. The business's revenue for the quarter was up 15.2% compared to the same quarter last year. Equities analysts expect that First Watch Restaurant Group, Inc. will post 0.2 earnings per share for the current year.

First Watch Restaurant Group News Summary

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

• Positive Sentiment: Second-quarter revenue increased 15.2% year over year to $354.7 million, exceeding analysts’ $351.6 million estimate. Same-restaurant sales rose 3.4%, while the company opened 18 system-wide restaurants across 15 states. Adjusted EBITDA was $34.5 million. First Watch Restaurant Group Reports Q2 2026 Financial Results
• Positive Sentiment: Management outlined a longer-term growth plan targeting 50 company-operated restaurant openings annually beginning in 2027. It also guided 2026 adjusted EBITDA to $133 million-$136 million, signaling continued confidence in unit expansion and operating performance. First Watch outlines 2027 plan and 2026 EBITDA guidance
• Neutral Sentiment: The company maintained full-year 2026 revenue guidance of approximately $1.4 billion, broadly in line with Wall Street expectations. This supports the growth outlook but did not represent a clear upside revision. First Watch Q2 key metrics compared with estimates
• Negative Sentiment: Quarterly EPS was $0.04, below consensus estimates ranging from $0.05 to $0.06, although it improved from $0.03 in the prior-year quarter. The earnings miss and the company’s thin 1.38% net margin may limit the stock’s upside if cost pressures persist. First Watch lags Q2 earnings estimates

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on FWRG shares. Freedom Capital upgraded First Watch Restaurant Group to a "strong-buy" rating in a research note on Wednesday, July 1st. Stephens reissued an "overweight" rating and issued a $21.00 target price on shares of First Watch Restaurant Group in a research note on Wednesday, May 6th. Benchmark lowered their target price on shares of First Watch Restaurant Group from $24.00 to $22.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Weiss Ratings lowered shares of First Watch Restaurant Group from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, May 11th. Finally, Stifel Nicolaus set a $14.00 price target on shares of First Watch Restaurant Group in a research note on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, First Watch Restaurant Group currently has a consensus rating of "Moderate Buy" and an average price target of $18.78.

First Watch Restaurant Group 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.

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