FWRG - First Watch: Phenomenal Growth But At A Price

• First Watch is one of the most recent restaurant IPOs to debut, and the stock has dropped nearly 40% from its initial IPO high of $25.40.
• The company was founded in 1983 and now has over 430 locations, and is focused on breakfast and lunch, with healthy made-to-order dishes using fresh ingredients.
• With a two-year stacked comp sales growth rate of ~19% and a goal for double-digit unit growth in 2022, it is easily one of the best growth stories industry-wide.
• However, with the stock trading at nearly 20x EV/EBITDA and more than 60x FY2023 earnings estimates, I don't see enough of a margin of safety here for starting new positions.

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