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First Watch (FWRG) Acquires Tulsa-Area Franchise Location
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First Watch Restaurant Group, Inc. (FWRG - Free Report) has successfully acquired its franchise-owned restaurant in Broken Arrow, OK, aligning with its robust long-term growth strategy. The acquisition, effective immediately, signifies a strategic move for FWRG as it brings the previously franchise-operated establishment into its company-owned system.
The Broken Arrow restaurant, operational for less than two years, has already established itself as a local favorite, leaving an indelible mark on the community. Chris Tomasso, CEO and president of First Watch, expressed gratitude to the franchise partner for their support during the seamless transition. The move is expected to further solidify First Watch's commitment to operational excellence, a cornerstone of the brand's success.
This acquisition strategically positions First Watch to capitalize on the restaurant's proven success in the local market. With a focus on enhancing operational efficiency and customer satisfaction, FWRG aims to maintain and build upon the restaurant's positive reputation.
As First Watch continues its expansion, the Broken Arrow acquisition serves as a testament to the company's dedication to providing an exceptional dining experience. Investors can anticipate sustained growth and increased brand value as First Watch reinforces its presence in the competitive Daytime Dining sector.
Acquisitions to Drive Growth
Recently, management stated that it is set to acquire 21 of its franchise restaurants in North Carolina and their development rights for an aggregate of $75 million. The transaction will be on a cash-free, debt-free basis, subject to customary adjustments. The acquisition of its largest franchisee's restaurants is set to be completed by the end of April.
The buyout of the restaurants aligns with First Watch’s long-term growth strategy. The company anticipates these restaurants, serving North Carolina communities for nearly 10 years, will yield average unit volumes and operating profit margins in line with its company-owned restaurants.
Shares of the company have gained 29.1% in the past year compared with the industry’s growth of 4%.
FWRG currently has a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
Key Picks
Below, we present some better-ranked stocks from the Zacks Retail-Wholesale sector.
Arcos Dorados Holdings Inc. (ARCO - Free Report) flaunts a Zacks Rank #1 (Strong Buy) at present. It has a trailing four-quarter earnings surprise of 28.3%, on average. Shares of ARCO have jumped 39.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago levels.
Abercrombie & Fitch Co. (ANF - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 249.2% in the past year.
The Zacks Consensus Estimate for ANF’s 2024 sales and EPS suggests an increase of 13.3% and 2,196%, respectively, from the year-ago levels.
Deckers Outdoor Corporation (DECK - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 26.3%, on average. Shares of DECK have gained 81.6% in the past year.
The Zacks Consensus Estimate for DECK’s fiscal 2024 sales and EPS implies 11.7% and 21.9% growth, respectively, from the year-earlier numbers.
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First Watch (FWRG) Acquires Tulsa-Area Franchise Location
First Watch Restaurant Group, Inc. (FWRG - Free Report) has successfully acquired its franchise-owned restaurant in Broken Arrow, OK, aligning with its robust long-term growth strategy. The acquisition, effective immediately, signifies a strategic move for FWRG as it brings the previously franchise-operated establishment into its company-owned system.
The Broken Arrow restaurant, operational for less than two years, has already established itself as a local favorite, leaving an indelible mark on the community. Chris Tomasso, CEO and president of First Watch, expressed gratitude to the franchise partner for their support during the seamless transition. The move is expected to further solidify First Watch's commitment to operational excellence, a cornerstone of the brand's success.
This acquisition strategically positions First Watch to capitalize on the restaurant's proven success in the local market. With a focus on enhancing operational efficiency and customer satisfaction, FWRG aims to maintain and build upon the restaurant's positive reputation.
As First Watch continues its expansion, the Broken Arrow acquisition serves as a testament to the company's dedication to providing an exceptional dining experience. Investors can anticipate sustained growth and increased brand value as First Watch reinforces its presence in the competitive Daytime Dining sector.
Acquisitions to Drive Growth
Recently, management stated that it is set to acquire 21 of its franchise restaurants in North Carolina and their development rights for an aggregate of $75 million. The transaction will be on a cash-free, debt-free basis, subject to customary adjustments. The acquisition of its largest franchisee's restaurants is set to be completed by the end of April.
The buyout of the restaurants aligns with First Watch’s long-term growth strategy. The company anticipates these restaurants, serving North Carolina communities for nearly 10 years, will yield average unit volumes and operating profit margins in line with its company-owned restaurants.
Shares of the company have gained 29.1% in the past year compared with the industry’s growth of 4%.
FWRG currently has a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
Key Picks
Below, we present some better-ranked stocks from the Zacks Retail-Wholesale sector.
Arcos Dorados Holdings Inc. (ARCO - Free Report) flaunts a Zacks Rank #1 (Strong Buy) at present. It has a trailing four-quarter earnings surprise of 28.3%, on average. Shares of ARCO have jumped 39.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago levels.
Abercrombie & Fitch Co. (ANF - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 249.2% in the past year.
The Zacks Consensus Estimate for ANF’s 2024 sales and EPS suggests an increase of 13.3% and 2,196%, respectively, from the year-ago levels.
Deckers Outdoor Corporation (DECK - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 26.3%, on average. Shares of DECK have gained 81.6% in the past year.
The Zacks Consensus Estimate for DECK’s fiscal 2024 sales and EPS implies 11.7% and 21.9% growth, respectively, from the year-earlier numbers.