We recently published a list of Top 10 Stocks to Buy According to 12 West Capital Management. In this article, we are going to take a look at where First Watch Restaurant Group, Inc. (NASDAQ:FWRG) stands against other top stocks to buy according to 12 West Capital Management.
Joel Ramin founded 12 West Capital Management in August 2011, establishing it as a New York-based hedge fund specializing in global investments across equities, equity-related instruments, and credit securities. Prior to launching 12 West, Ramin worked as an analyst at Bridger Capital, gaining experience in both long equity positions and short-selling strategies. Currently, he serves as the firm’s Managing Member and Portfolio Manager, overseeing investment decisions and advisory services for institutional investors in the United States.
12 West Capital Management focuses on providing tailored investment management solutions, leveraging a research-driven approach to identify opportunities across various markets. The firm actively engages in both long-term and short-term investments, aiming to maximize returns through strategic asset allocation and risk management. Its expertise spans multiple asset classes, allowing it to adapt to changing market conditions while delivering value to its clients.
Joel Ramin holds a degree from the McIntire School of Commerce, where he completed his undergraduate studies in finance in 2000. His background in finance and investment, combined with his experience at Bridger Capital, has shaped his approach to portfolio management at 12 West Capital. Under his leadership, the firm has built a reputation for its disciplined investment strategies and commitment to generating long-term growth for its investors.
According to its most recent 13F filing for the fourth quarter of 2024, 12 West Capital Management reported nearly $954.6 million in managed 13F securities, with its top 10 holdings accounting for a hefty 90.75% of its portfolio.
Our Methodology
The stocks discussed below were picked from 12 West Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A busy restaurant kitchen with a chef carefully plating a meal.
First Watch Restaurant Group, Inc. (NASDAQ:FWRG)
Number of Hedge Fund Holders as of Q4: 15
12 West Capital Management’s Equity Stake: $37.47 Million
First Watch Restaurant Group, Inc. (NASDAQ:FWRG) operates and franchises restaurants across the United States under the First Watch brand. Headquartered in Bradenton, Florida, the company specializes in breakfast, brunch, and lunch offerings. The company’s primary source of revenue comes from food and beverage sales at its restaurants, with additional income generated through franchise fees and royalties from its franchised locations.
For the quarter ending December 2024, First Watch Restaurant Group, Inc. (NASDAQ:FWRG) reported revenue of $263.29 million, reflecting a 7.6% increase from the same period the previous year and surpassing analysts’ expectations of $262.18 by 0.43%. The company reported earnings per share (EPS) of $0.01, compared to $0.04 a year ago. However, the EPS fell short of projections, coming in 50% lower than the anticipated $0.02 per share.
Key performance metrics reported by First Watch Restaurant Group, Inc. (NASDAQ:FWRG) included same-restaurant sales growth of -0.3%, slightly outperforming the analyst consensus of -0.5%. The total number of system-wide restaurants stood at 572, aligning with analyst estimates, while franchise-owned locations remained at 83 and company-owned restaurants slightly exceeded expectations at 489, compared to the projected 488. Franchise revenue for the quarter was reported at $2.67 million, reflecting a 25.8% decline year over year and missing the projected $2.76 million. Meanwhile, restaurant sales grew by 8.1% year over year, reaching $260.63 million, exceeding the forecasted $259.43 million.
Institutional interest in First Watch Restaurant Group, Inc. (NASDAQ:FWRG) has also grown, with Insider Monkey’s data showing that 15 hedge funds held stakes in the company at the end of Q4, representing a combined value of over $115.8 million, up from 6 funds in the previous quarter. The increasing hedge fund investments reflect strong institutional confidence, reinforcing First Watch Restaurant Group’s position as a top stock to buy according to 12 West Capital Management.
Ave Maria Focused Fund made the following comment about First Watch Restaurant Group, Inc. (NASDAQ:FWRG) in its Q2 2023 investor letter:
“The Fund added three new positions in the first half of the year. Two of them are high-growth restaurant chains. First Watch Restaurant Group, Inc. (NASDAQ:FWRG) is a daytime only concept that operates in the US. The second restaurant, Alsea Group, is owner of the master franchise agreement for Domino’s Pizza in Latin America, as well as Starbucks in Latin America, Spain, and France. Both restaurant groups exhibit strong same-store sales and store-count growth as well as high returns on invested capital.”
Overall, FWRG ranks 8th on our list of top stocks to buy according to 12 West Capital Management. While we acknowledge the potential for FWRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FWRG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center