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First Watch Restaurant (FWRG) Boosts Presence in North Carolina

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First Watch Restaurant Group, Inc. (FWRG - Free Report) has sealed a significant deal, acquiring 21 franchise-owned restaurants in North Carolina for $75 million. This marks FWRG's largest franchise acquisition to date, reinforcing its commitment to expansion and value creation. The acquisition aligns with the company’s long-term strategy, bringing in establishments expected to match the performance of its company-owned counterparts.

Chris Tomasso, CEO and president of First Watch Restaurant, emphasizes the strategic importance of this move. It bolsters the company's presence in a key market and provides substantial growth potential through associated development rights. With this acquisition, management anticipates organic growth for years to come, capitalizing on white space opportunities within the region.

This transaction adds to First Watch Restaurant’s portfolio and strengthens its organizational structure. Welcoming more than 600 new employees into its corporate-owned system, FWRG emphasizes its commitment to "You First" culture, ensuring a seamless transition and integration process.

This acquisition is part of a broader trend for First Watch Restaurant, which has been actively expanding its reach. Since May 2023, the company has acquired a total of 44 franchised restaurants across 17 designated market areas. This consistent growth trajectory underscores its position as a leading player in the daytime dining segment.

Investors eyeing opportunities in the restaurant industry should take note of FWRG's strategic acquisitions, which position the company for sustained growth and value creation in the competitive market landscape.

Shares of the company have risen 53.1% in the past year against the industry’s decline of 2.7%.

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Zacks Rank & Key Picks

FWRG currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector have been discussed below.

Abercrombie & Fitch Co. (ANF - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a trailing four-quarter earnings surprise of 715.6%, on average. The stock has risen 356.9% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) implies growth of 5.6% and 19.1%, respectively, from the year-ago levels.

Burlington Stores, Inc. (BURL - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.1%, on average. The stock has risen 4.7% in the past year.

The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a rise of 10.2% and 22.3%, respectively, from the year-ago levels.

The Gap, Inc. currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has risen 150.2% in the past year.

The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS implies a decline of 0.3% and 4.9%, respectively, from the year-ago levels.


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