The company's financial risk profile is elevated by a total debt load of $761.9 million and a debt-to-equity ratio of 1.21, which limits financial flexibility as the firm continues to fund operations through debt.
| Total Current Assets | 51.57M | 49.08M | 55.88M | 71.19M | 67.29M | 67.7M | 49.04M | 24.24M | 29.44M |
| Cash & Short-Term Investments | 23.57M | 21.25M | 33.31M | 49.63M | 49.67M | 51.86M | 38.85M | 11.12M | 16.28M |
| Cash Only | 23.57M | 21.25M | 33.31M | 49.63M | 49.67M | 51.86M | 38.85M | 11.12M | 16.28M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 6.03M | 6.86M | 7.24M | 5.53M | 6.16M | 4.45M | 3.92M | 5.74M | 1.91M |
| Days Sales Outstanding | 1.71 | 2.05 | 2.6 | 2.26 | 3.08 | 2.7 | 4.17 | 4.8 | 1.99 |
| Inventory | 7.14M | 7.17M | 6.12M | 5.38M | 5.03M | 4.02M | 2.92M | 2.71M | 2.14M |
| Days Inventory Outstanding | 3.05 | 2.46 | 10.01 | 2.8 | 3.11 | 3.08 | 3.4 | 2.84 | 2.8 |
| Other Current Assets | 14.83M | 13.8M | 2.2M | 3.15M | 624K | 1.68M | 872K | 1.56M | 4.29M |
| Total Non-Current Assets | 1.72B | 1.69B | 1.46B | 1.2B | 1.04B | 979.22M | 958.47M | 957.84M | 635.07M |
| Property, Plant & Equipment | 1.12B | 1.09B | 889.07M | 683.08M | 547.49M | 489.69M | 468.3M | 466.85M | 124.76M |
| Fixed Asset Turnover | 1.18x | 1.12x | 1.14x | 1.31x | 1.33x | 1.23x | 0.73x | 0.93x | 2.80x |
| Goodwill | 420.21M | 420.21M | 398.56M | 359.88M | 345.22M | 345.22M | 345.22M | 345.22M | 330.83M |
| Intangible Assets | 172.58M | 174.91M | 167.6M | 151.19M | 143.15M | 143M | 143.66M | 144.56M | 178.25M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 5M | 4.83M | 3.25M | 1.7M | 1.3M | 1.31M | 1.29M | 1.21M | 1.23M |
| Total Assets | 1.77B | 1.74B | 1.51B | 1.27B | 1.1B | 1.05B | 1.01B | 982.08M | 664.51M |
| Asset Turnover | 0.74x | 0.70x | 0.67x | 0.70x | 0.66x | 0.57x | 0.34x | 0.44x | 0.53x |
| Asset Growth % | 62.43% | 15.03% | 19.52% | 14.72% | 5.5% | 3.91% | 2.59% | 47.79% | - |
| Total Current Liabilities | 177.49M | 167.5M | 138.47M | 115.07M | 99.98M | 96.52M | 76.53M | 73.02M | 36.9M |
| Accounts Payable | 9.77M | 8.7M | 6.96M | 6.32M | 7.59M | 11.06M | 4.22M | 5.09M | 5.56M |
| Days Payables Outstanding | 3.67 | 2.99 | 11.39 | 3.29 | 4.69 | 8.46 | 4.93 | 5.32 | 7.29 |
| Short-Term Debt | 89.36M | 88.34M | 9.23M | 5.63M | 7.63M | 5.54M | 3.59M | 2.97M | 1.9M |
| Deferred Revenue (Current) | 14.6M | 6.78M | 5.62M | 5.5M | 5.19M | 4.65M | 4.27M | 7.12M | 0 |
| Other Current Liabilities | 74.05M | 63.68M | 23.87M | 23.3M | 19.43M | 22.55M | 12.15M | 13.05M | 10.88M |
| Current Ratio | 0.29x | 0.29x | 0.40x | 0.62x | 0.67x | 0.70x | 0.64x | 0.33x | 0.80x |
| Quick Ratio | 0.25x | 0.25x | 0.36x | 0.57x | 0.62x | 0.66x | 0.60x | 0.29x | 0.74x |
| Cash Conversion Cycle | 1.09 | 1.52 | 1.22 | 1.77 | 1.5 | -2.68 | 2.65 | 2.32 | -2.5 |
| Total Non-Current Liabilities | 968.91M | 948.25M | 780.5M | 590.69M | 481.33M | 445.96M | 610.11M | 579.27M | 252.93M |
| Long-Term Debt | 672.56M | 651.25M | 189.04M | 119.77M | 94.67M | 99.75M | 286.4M | 250.4M | 188.61M |
| Capital Lease Obligations | 1.29B | 0 | 555.58M | 441.29M | 366.11M | 330.5M | 307.8M | 295.63M | 4.54M |
| Deferred Tax Liabilities | 108.04M | 21.97M | 32.22M | 25.33M | 17.17M | 12.49M | 13.65M | 30.3M | 0 |
| Other Non-Current Liabilities | 275.56M | 275.02M | 3.66M | 4.3M | 3.38M | 3.23M | 2.27M | 2.93M | 59.79M |
| Total Liabilities | 1.15B | 1.12B | 918.97M | 705.76M | 581.31M | 542.49M | 686.65M | 652.28M | 289.84M |
| Total Debt | 761.92M | 739.6M | 809.55M | 606.97M | 507.35M | 473.97M | 637.9M | 576.44M | 195.04M |
| Net Debt | 738.36M | 718.35M | 776.24M | 557.33M | 457.68M | 422.11M | 599.06M | 565.32M | 178.76M |
| Debt / Equity | 1.21x | 1.18x | 1.36x | 1.08x | 0.97x | 0.94x | 1.99x | 1.75x | 0.52x |
| Debt / EBITDA | 6.96x | 6.80x | 8.38x | 7.36x | 9.92x | 8.68x | - | - | 6.64x |
| Net Debt / EBITDA | 6.75x | 6.60x | 8.03x | 6.76x | 8.95x | 7.73x | - | - | 6.09x |
| Interest Coverage | 1.64x | 2.02x | 3.22x | 5.47x | 3.41x | 1.02x | -2.05x | -1.88x | - |
| Total Equity | 627.66M | 626.28M | 595.39M | 561.28M | 523.13M | 504.43M | 320.87M | 329.8M | 374.67M |
| Equity Growth % | 16.19% | 5.19% | 6.08% | 7.29% | 3.71% | 57.21% | -2.71% | -11.98% | - |
| Book Value per Share | 10.25 | 9.97 | 9.55 | 9.17 | 8.70 | 10.46 | 5.48 | 5.64 | 8.32 |
| Total Shareholders' Equity | 627.66M | 626.28M | 595.39M | 561.28M | 523.13M | 504.43M | 320.87M | 329.8M | 374.42M |
| Common Stock | 616K | 611K | 607K | 599K | 592K | 590K | 450K | 450K | 38K |
| Retained Earnings | -37.08M | -34.39M | -53.82M | -72.75M | -98.13M | -105.04M | -102.93M | -53.25M | -7.69M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -541K | -1.09M | -441K | -667K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 250K |
Liquidity and leverage constraints
As reported in recent financial statements, FWRG's current ratio has deteriorated to 0.29 in 2026Q1, indicating that the company maintains a minimal liquidity buffer relative to its short-term obligations, which warrants close monitoring given the ongoing capital intensity required to support its aggressive restaurant expansion strategy.
The persistent decline in the current ratio from 0.62 in 2023Q4 to current levels suggests that the company is increasingly reliant on external financing or operational cash flow to meet immediate liabilities. This tight liquidity position leaves little room for error should the company face unexpected disruptions in foot traffic or commodity cost spikes.
Based on reported figures, FWRG's total debt has climbed to $761.9 million as of 2026Q1, driving the debt-to-equity ratio to 1.21, which suggests that the firm's reliance on debt-funded growth is significantly increasing its financial risk profile compared to earlier periods of more conservative capital management.
The rapid accumulation of debt appears to be directly tied to the company's strategy of re-acquiring franchised units and funding new store construction. Investors should consider whether the incremental EBITDA generated from these new assets will be sufficient to service the rising interest burden in a higher-rate environment.
According to SEC filings, FWRG's asset composition is heavily weighted toward $1.1 billion in net PPE and $420.2 million in goodwill, indicating that a significant portion of the balance sheet is tied to intangible brand value and physical infrastructure rather than highly liquid current assets.
The high concentration of goodwill suggests that past acquisitions of franchised territories are a major component of the company's valuation. Should the performance of these acquired units fail to meet expectations, the company may face impairment risks that could negatively impact equity and overall balance sheet health.
As indicated by the company's balance sheet data, FWRG continues to report a negative retained earnings balance of $37.1 million in 2026Q1, which reflects the cumulative impact of historical operating losses and the high costs associated with scaling the restaurant footprint across new geographic markets.
The persistent negative retained earnings suggest that the company has yet to reach a stage of self-sustaining profitability that allows for internal capital accumulation. This reliance on external equity and debt to fund operations underscores the speculative nature of the current growth-at-all-costs business model.
Quick answers to the most common questions about buying FWRG stock.
As of 2025, First Watch Restaurant Group, Inc. (FWRG) had total assets of $1.74B including $49.1M in current assets.
First Watch Restaurant Group, Inc. (FWRG) carries total debt of $739.6M, offset by $21.2M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
First Watch Restaurant Group, Inc. (FWRG) has total shareholders' equity (book value) of $626.3M ($9.97 book value per share). Book value represents the net worth of the company belonging to common stock holders.
First Watch Restaurant Group, Inc. (FWRG) reported a current ratio of 0.29x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.