Yahoo Finance First Watch (FWRG) Acquires Tulsa-Area Franchise Location
First Watch Restaurant Group, Inc. FWRG 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).
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First Watch Restaurant Group, Inc. (FWRG) : Free Stock Analysis Report
