BRADENTON, Fla. - First Watch Restaurant Group, Inc. (NASDAQ: FWRG), a prominent daytime dining chain, today announced the acquisition of 21 franchise-owned restaurants and their development rights in North Carolina. The transaction, valued at $75 million, is part of the company's strategy to bolster long-term growth and value creation.
CEO and President Chris Tomasso expressed that the newly acquired restaurants are anticipated to perform in line with First Watch's company-owned locations in terms of average unit volumes and profit margins. The deal also includes development rights, which Tomasso views as an opportunity for organic growth in the North Carolina market.
The inclusion of over 600 new employees into First Watch's corporate system is seen as a reinforcement of the company's 'You First' culture, which places a strong emphasis on employee care.
Since May 2023, First Watch has incorporated 44 franchised restaurants from 17 different markets through six separate acquisitions. The company now operates over 520 restaurants across 29 states, employing more than 15,000 team members.
First Watch is known for its made-to-order breakfast, brunch, and lunch offerings, utilizing fresh ingredients. The chain has received numerous local awards for its breakfast and brunch selections and was recognized by Yelp (NYSE:YELP) as the top restaurant brand in their list of the top 50 most-loved brands in the U.S. in 2023.
The company's forward-looking statements, as disclosed, involve risks and uncertainties that could cause actual results to differ materially from projected outcomes. These include macroeconomic conditions affected by global conflicts, market saturation, and various operational challenges.
This acquisition marks a significant expansion for First Watch in the North Carolina region, and it is based on a press release statement from the company.
InvestingPro Insights
As First Watch Restaurant Group, Inc. (NASDAQ: FWRG) progresses with its strategic acquisitions, the company's financial metrics and market performance provide valuable insights for investors. According to recent InvestingPro data, First Watch has a market capitalization of $1.36 billion.
The company's P/E ratio stands at 57.63, which, while high, is tempered by a PEG ratio of just 0.2, indicating potential for earnings growth relative to its P/E ratio.
InvestingPro Tips suggest that First Watch has been trading at a high earnings multiple, which could be a factor for investors to consider in the context of its recent expansion efforts. Moreover, the company has seen a strong return over the last year, with a 53.61% price total return, reflecting investor confidence and market performance that could be bolstered by the acquisition in North Carolina.
Notably, analysts predict First Watch will be profitable this year, which aligns with the company's optimistic outlook on the newly acquired restaurants' performance.
As First Watch continues to grow, there are 12 additional InvestingPro Tips available, providing a deeper dive into the company's financial health and market position. To explore these further, visit: https://www.investing.com/pro/FWRG and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.