Is First Watch Restaurant Group, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for First Watch Restaurant Group, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 54, a Price to Book Value of 1.53, and an EV to EBITDA of 11.90. In comparison, Brinker International, Inc. has a more attractive P/E of 26.05, while Shake Shack, Inc. is considered very expensive with a P/E of 194.06.
In terms of recent performance, First Watch Restaurant Group, Inc. has outperformed the S&P 500 over the past week and month, returning 18.44% and 8.41% respectively, while the S&P 500 returned 1.70% and 0.96%. However, it has lagged behind the index year-to-date and over the past year, indicating mixed performance relative to the broader market.