10 Stocks with Insanely High PE Ratios Insiders Are Selling

2. First Watch Restaurant Group, Inc. (NASDAQ:FWRG)

P/E Ratio: 61.36

Insider Transaction: -52.97%

Headquartered in Florida, First Watch Restaurant Group, Inc. (NASDAQ:FWRG) is a daytime dining chain that offers breakfast, brunch, and lunch across the U.S. Competing with tough players like Denny’s, the company gains a competitive advantage through fresh, made-to-order menu offerings and a no-franchise model for quality control. First Watch Restaurant Group, Inc. (NASDAQ:FWRG)’s primary target is suburban markets with significant foot traffic and many families. Labor availability, food cost inflation, and consumer preferences towards casual dining influence the company’s performance. It is among the stocks insiders are selling.

First Watch Restaurant Group, Inc. (NASDAQ:FWRG) has recently announced its Q1 2025 results, which reported a 16.51% year-over-year growth. It also established 13 new system-wide restaurants across 10 states. On the other hand, the net income during the period has decreased to -$0.8 million from $7.2 million in the same period the previous year, owing to a significant decline in both income from operations margin and restaurant-level operating profit margin, and high food and labor costs. The new Adjusted EBITDA guidance range has declined from $124.0 million to $130.0 million in 2024 to $114.0 million to $119.0 million in 2025, indicating company growth complications.

Investor expectations for First Watch Restaurant Group, Inc. (NASDAQ:FWRG) seem to stand above average, as represented by the notable P/E ratio of 61.36. However, with a dramatic 52.97% rise in insider selling, it may be possible that the confidence from within the company’s leadership is fading.