Why First Watch (FWRG) Shares Are Rising Today

Recent Developments at First Watch Restaurant Group

First Watch Restaurant Group (NASDAQ:FWRG), a popular breakfast and brunch chain, saw its stock price climb by 3.5% during the afternoon after releasing impressive preliminary results for its 2025 fiscal year. The company highlighted record-breaking new restaurant openings and continued sales growth.

In 2025, First Watch expanded rapidly, launching 64 new locations across 23 states—a new milestone for the company. Over the year, restaurants that had been open for at least a year experienced a 3.6% rise in sales, while customer visits edged up by 0.5%. Although fourth-quarter sales increased by 3.1%, there was a slight dip in customer traffic, down 1.9% for that period. CEO and President Chris Tomasso shared that the newly opened restaurants were exceeding internal expectations and reaffirmed the company’s commitment to expanding its footprint by approximately 10% annually.

At the close of trading, First Watch shares finished at $16.48, marking a 5.8% gain from the previous day’s close.

Market Reaction and Stock Performance

First Watch’s stock has shown considerable volatility, with 28 instances of price swings greater than 5% over the past year. Today’s uptick suggests investors view the latest news as important, though not transformative for the company’s overall outlook.

One of the most significant movements in the past year occurred eight months ago, when the stock plunged 19.4% following disappointing first-quarter 2025 results. The company missed its full-year EBITDA guidance, and earnings came in below Wall Street’s forecasts.

Despite a 16% increase in revenue that matched expectations, sales at established locations barely grew, and customer traffic slipped, reflecting more cautious consumer behavior and weaker in-store trends. This led to a softer quarter overall.

Since the start of the year, First Watch shares have risen 7.2%. However, at $16.48 per share, the stock remains 25.9% below its 52-week high of $22.23, set in February 2025. Investors who purchased $1,000 worth of shares at the company’s IPO in September 2021 would now see their investment valued at $744.69.

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