NEW YORK, May 20, 2026, 3:05 PM EDT
- First Watch shares gained 5 cents to $10.94 during afternoon trading, lagging the wider move in small caps.
- The company set its annual meeting for Wednesday morning. Director elections and pay votes are on the agenda.
- The company’s recent quarterly numbers showed quick sales gains, but traffic slid, and it reported a net loss.
First Watch Restaurant Group shares ended the day mostly flat on Wednesday, trailing the broader market. The breakfast-and-brunch chain’s new growth plan is in focus as investors look past weaker guest traffic numbers.
That’s key right now with First Watch still trading as a growth restaurant name. The next move for the stock could have less to do with just today’s action and more with whether new units, menu tweaks and marketing can bring in more customers without hurting margins.
Nasdaq-listed shares last changed hands at $10.94, up 5 cents, or 0.5%. The stock has traded between $10.59 and $11.14 so far. Market cap stood at around $670 million.
U.S. stocks were higher Wednesday. The main indexes advanced, with chip names bouncing ahead of Nvidia earnings. The SPDR S&P 500 ETF climbed around 0.9% and the iShares Russell 2000 ETF rose about 2.2%.
First Watch scheduled its annual meeting for 8 a.m. Eastern time on Wednesday. According to a proxy filing, shareholders were set to vote on three Class II directors, give advisory votes on executive compensation and how often to hold such votes, and decide on ratifying PricewaterhouseCoopers as auditor.
No new earnings report has come out in the last day. The company’s investor page is still showing the May 5 8-K and 10-Q as its most recent filings, so focus stays on the first-quarter numbers and not any fresh news.
First Watch posted a 17.3% revenue jump to $331.0 million for the quarter, with system-wide sales up 13.8% to $367.6 million. Same-restaurant sales gained 2.8%, but traffic slipped 2.0%. Net loss was $2.7 million, while adjusted EBITDA came in at $27.8 million.
First Watch Chief Executive Chris Tomasso said the company saw “solid results” for the quarter and is keeping its “full-year top-line growth outlook.” The group opened 16 restaurants across 11 states, closing the quarter with 648 system-wide restaurants. First Watch Restaurant Group, Inc
First Watch CFO Mel Hope told the earnings call the company is planning for “positive same-restaurant sales growth into each quarter of 2026.” He said First Watch is looking at commodity inflation of 1% to 3% and restaurant labor cost inflation of 3% to 5%. Adjusted EBITDA is expected at $133 million to $140 million, with capital expenditures in the $150 million to $160 million range for the year. Investing
Restaurant stocks traded mixed, with most showing gains. Dine Brands, which owns IHOP and Applebee’s, added around 2.3%. Darden Restaurants climbed 2.2%. Chipotle Mexican Grill tacked on about 0.4%. First Watch led for the day, but without the same momentum that turned up in some consumer and restaurant names.
The risks for First Watch are pretty straightforward. If guest traffic stays down or if labor and food bills rise faster than the company can manage, opening more restaurants won’t guarantee higher profit. In the 10-Q, First Watch flagged weaker-than-hoped same-store sales, higher food and labor costs, problems opening new locations, and debt among its main risks. The company finished the quarter with $23.6 million in cash and $265.3 million drawn on its credit line.
First Watch shares are drifting for now, not breaking out. The market has a broad rally, but First Watch still has to show it can drive breakfast traffic.
