Major Shareholder Exit Weighs on First Watch Restaurant Stock

A significant private equity investor has initiated a substantial divestment from First Watch Restaurant Group, Inc., creating uncertainty in the market. In August 2025, Advent International, one of the company’s principal shareholders, disposed of its entire 5 million share stake in the breakfast and brunch chain. This transaction was executed as a secondary offering, with all proceeds directed to the selling shareholder rather than to the company itself. Large-scale disposals by major institutional holders typically increase trading volume and can place considerable downward pressure on a stock’s price.

The company’s latest quarterly results, released in August 2025, present a conflicting narrative. Second-quarter revenue demonstrated robust growth, climbing 19.1% to $307.9 million and surpassing market forecasts. However, this top-line strength was countered by... Read more...