Last Updated: 18 Sep 2024
Executive Summary
First Watch Restaurant Group Inc. (FWRG) is a publicly traded company operating in the restaurant industry. The company's stock is currently trading at $15.34, with a market capitalization of $926.76 million. FWRG has shown strong financial performance in recent quarters, with revenue and earnings growth exceeding industry averages. The company's valuation metrics are in line with industry peers, and analysts have a positive outlook on the stock.
Company Overview
First Watch Restaurant Group Inc. is a leading operator of full-service breakfast, brunch, and lunch restaurants. The company operates over 400 restaurants in 27 states and Canada. FWRG's menu features a variety of breakfast and lunch items, including omelets, pancakes, waffles, sandwiches, and salads. The company also offers a wide selection of coffee, tea, and juice drinks.
Fundamental Analysis
FWRG's financial performance has been strong in recent quarters. In the most recent quarter, the company reported revenue of $964.85 million, an increase of 19.5% year-over-year. Net income was $24.1 million, an increase of 7.7% year-over-year. Diluted EPS was $0.39, an increase of 7.7% year-over-year.
FWRG's financial ratios are also strong. The company's gross profit margin is 15.0%, which is above the industry average of 14.5%. FWRG's operating margin is 6.8%, which is also above the industry average of 6.0%. The company's return on assets is 2.3%, which is in line with the industry average of 2.5%.
Technical Analysis
FWRG's stock price has been trading in a range between $14.05 and $25.98 over the past 52 weeks. The stock is currently trading near the bottom of this range. The 50-day moving average is $15.92, and the 200-day moving average is $19.92. The stock's relative strength index (RSI) is 35.0, which indicates that the stock is oversold.
Short Term Outlook
In the short term, FWRG's stock price is likely to remain range-bound. The stock is currently trading near support at $14.05. If the stock breaks below this level, it could fall to $13.00. However, if the stock breaks above resistance at $15.92, it could rise to $17.00.
Long Term Outlook
In the long term, FWRG's stock price is likely to rise. The company has a strong track record of financial performance, and its valuation metrics are in line with industry peers. Analysts have a positive outlook on the stock, and they believe that it has the potential to outperform the market over the next 12 months.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on FWRG's stock. The average analyst target price is $22.05, which represents a potential upside of 43.5% from the current price. Five analysts have a "Strong Buy" rating on the stock, two analysts have a "Buy" rating, and two analysts have a "Hold" rating. No analysts have a "Sell" or "Strong Sell" rating on the stock.
