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FWRG Expands Portfolio With Strategic Acquisitions in Missouri

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First Watch Restaurant Group, Inc. (FWRG - Free Report) acquired three franchise-owned restaurants in Missouri, along with the development rights for the area. The move is expected to support the company’s growth strategy through increased control over operations and future expansion.

The company will share more details about the transaction when it announces results for the fiscal first quarter ended March 30, 2025.

FWRG Bolsters Portfolio With Latest Acquisitions

The company added Lee’s Summit, West Columbia and South Columbia locations to its company-operated portfolio. All three units, which opened in the last five years, have established solid community relationships.

So far, the company has acquired 48 franchised restaurants across seven deals since May 2023. This acquisition aligns with FWRG’s long-term growth strategy, as the added development rights provide room for organic expansion in a key regional market.

FWRG’s Share Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of the company have gained 20.8% in the past six months against the Zacks Retail – Restaurants industry’s 4.6% decline. The company is benefiting from new restaurant openings and increased focus on strategic franchise acquisitions. In 2024, FWRG opened 50 restaurants, bringing its total to 572 restaurants across 29 states by Dec. 29, 2024, with 489 company-owned and 83 franchise-owned locations.

The company also acquired 22 operating restaurants along with development and territory rights in two separate transactions and signed agreements to acquire 19 additional restaurants from franchisees. These moves further solidify FWRG’s strategy to enhance its footprint and drive growth.

FWRG’s Zacks Rank & Key Picks

First Watch Restaurant currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are Sprouts Farmers Market, Inc. (SFM - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) and Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) .

Sprouts Farmers currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 38.1% in the past six months. The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and earnings per share (EPS) indicates a rise of 11.9% and 24.3%, respectively, from the year-ago period’s level.

BJ's Restaurants currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has declined 6.6% in the past six months.

The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and EPS indicates growth of 3.2% and 13.6%, respectively, from the year-ago period’s levels.

Cracker Barrel currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 22.5%, on average. The stock has declined 6.1% in the past six months.

The Zacks Consensus Estimate for Cracker Barrel’s 2026 sales and EPS indicates a rise of 2.3% and 13.8%, respectively, from the year-ago period’s level.

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