-6.19%
-4.53%
7.30%
27.55%
-21.45%
44.09%
-9.62%
Stock-Card

AI Spotlight on FWRG

Company Description

First Watch Restaurant Group, Inc.operates and franchises restaurants under the First Watch trade name.As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in 28 states in the United States.


The company was formerly known as AI Fresh Super Holdco, Inc.and changed its name to First Watch Restaurant Group, Inc.in December 2019.


First Watch Restaurant Group, Inc.was founded in 1983 and is headquartered in Bradenton, Florida.

Market Data

Last Price 20
Change Percentage -6.19%
Open 21.51
Previous Close 21.32
Market Cap ( Millions) 1211
Volume 450635
Year High 25.98
Year Low 12.9
M A 50 19.92
M A 200 17.78

Financial Ratios

FCF Yield -0.34%
Dividend Yield 0.00%
ROE 4.09%
Debt / Equity 132.21%
Net Debt / EBIDTA 732.73%
Price To Book 2.05
Price Earnings Ratio 51.12
Price To FCF -290.78
Price To sales 1.21
EV / EBITDA 19.52

News

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Restaurant - In-restaurant Dining

Expected Growth : 12 %

What the company do ?

First Watch Restaurant Group, Inc.'s in-restaurant dining offers a daytime-only, made-to-order breakfast and brunch experience with a focus on fresh, high-quality ingredients.

Why we expect these perspectives ?

First Watch Restaurant Group's 12% in-restaurant dining growth is driven by increasing brand awareness, menu innovation, and enhanced customer experience. Additionally, strategic marketing efforts, loyalty program expansion, and optimized menu pricing contribute to the growth. Furthermore, the company's focus on breakfast and brunch offerings, which are less competitive and have higher margins, also supports the segment's growth.

Segment n°2 -> Restaurant - Third-party Delivery

Expected Growth : 18 %

What the company do ?

First Watch Restaurant Group, Inc. partners with third-party delivery services to offer customers convenient delivery options from their restaurants.

Why we expect these perspectives ?

Strong demand for convenience, increasing adoption of online ordering, and strategic partnerships with third-party delivery providers drive growth. First Watch's breakfast-focused menu resonates with consumers seeking healthier, portable options. Expansion into new markets, improved operational efficiency, and investments in digital infrastructure further support the 18% growth.

Segment n°3 -> Restaurant - Take-out

Expected Growth : 10 %

What the company do ?

First Watch Restaurant Group, Inc. offers take-out services, allowing customers to enjoy their breakfast and brunch favorites at home or on-the-go.

Why we expect these perspectives ?

First Watch Restaurant Group, Inc.'s 10% take-out growth driven by increasing demand for convenience, health-conscious consumers seeking breakfast and brunch options, and effective marketing strategies. Additionally, the rise of third-party delivery platforms and the company's own online ordering system contribute to the growth. Furthermore, menu innovation and loyalty programs also play a key role in driving sales.

Segment n°4 -> Franchise - Royalty and System Fund Contributions

Expected Growth : 11 %

What the company do ?

First Watch Restaurant Group, Inc. requires franchisees to pay an initial franchise fee and ongoing royalties, as well as contribute to a system fund for marketing and operations support.

Why we expect these perspectives ?

First Watch Restaurant Group, Inc.'s 11% growth in Franchise - Royalty and System Fund Contributions is driven by increasing same-store sales, expansion of existing franchisee base, and strategic partnerships. Additionally, the brand's focus on breakfast and brunch, a growing demand for convenience, and effective marketing strategies contribute to this growth.

Segment n°5 -> Franchise - Business Combinations

Expected Growth : 13 %

What the company do ?

First Watch Restaurant Group, Inc. is a franchise business combination that operates daytime-only restaurants, offering breakfast, brunch, and lunch options under the First Watch brand.

Why we expect these perspectives ?

First Watch Restaurant Group's 13% growth in Franchise - Business Combinations is driven by increasing demand for breakfast and brunch options, successful franchisee partnerships, strategic site selection, and effective marketing campaigns. Additionally, the brand's focus on quality, freshness, and customer experience has led to strong same-store sales growth and attractive unit economics, fueling further expansion.

Segment n°6 -> Franchise - Initial Fees

Expected Growth : 9 %

What the company do ?

Initial franchise fee of $40,000 is paid to First Watch Restaurant Group, Inc. for the right to operate a First Watch restaurant, with ongoing royalties of 5% of gross sales.

Why we expect these perspectives ?

First Watch Restaurant Group, Inc.'s 9% growth in Initial Fees from Franchise is driven by increasing demand for breakfast and brunch options, expansion into new markets, and strategic partnerships. Additionally, the brand's focus on quality, freshness, and customer experience has led to higher royalties from existing franchisees, contributing to the growth.

First Watch Restaurant Group, Inc. Products

Product Range What is it ?
Breakfast Items First Watch Restaurant Group, Inc. offers a variety of breakfast items, including omelets, pancakes, waffles, eggs benedict, and breakfast sandwiches.
Lunch Items The company's lunch menu features a range of sandwiches, salads, soups, and wraps, all made with fresh, seasonal ingredients.
Beverages First Watch Restaurant Group, Inc. offers a variety of specialty coffee drinks, teas, and juices, as well as a selection of wine and beer.
Catering Services The company offers catering services for events and meetings, providing a range of menu items and customized solutions.
Online Ordering and Delivery First Watch Restaurant Group, Inc. offers online ordering and delivery services, allowing customers to enjoy their favorite menu items from the comfort of their own homes.

First Watch Restaurant Group, Inc.'s Porter Forces

First Watch Restaurant Group, Inc. faces moderate threat from substitutes as customers have various options for breakfast and brunch, but the company's unique menu offerings and high-quality ingredients help to differentiate it from competitors.

Customers have limited bargaining power due to the fragmented nature of the breakfast and brunch market, and First Watch's strong brand reputation and customer loyalty.

Suppliers have limited bargaining power due to the company's large scale of operations and ability to negotiate favorable prices for ingredients and supplies.

The threat of new entrants is moderate due to the relatively low barriers to entry in the breakfast and brunch market, but First Watch's established brand and operational efficiencies make it challenging for new entrants to compete.

The intensity of rivalry is high in the breakfast and brunch market, with many established players competing for market share, but First Watch's unique menu offerings and strong brand reputation help to differentiate it from competitors.

Strength

Weaknesses

Opportunities

Threats

Capital Structure

Value
Debt Weight 51.96%
Debt Cost 3.95%
Equity Weight 48.04%
Equity Cost 9.31%
WACC 6.53%
Leverage 108.14%

First Watch Restaurant Group, Inc. : Quality Control

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CHUY Chuy's Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy's name in the United States. As of December 26, 2021, it operated 96 restaurants in 17 …
CNNE Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae …
DENN Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of December 29, 2021, it had 1,640 franchised, licensed, and company restaurants …
RAVE Rave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark in the United States and internationally. It …
RICK RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments. It owns and/or …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
20.0$
Current Price
20$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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