Boston-based Advent International reported a significant reduction in its position in First Watch Restaurant Group (FWRG 2.16%) as of Sept. 30, 2025, with an estimated $152.89 million net decrease.

What happened

According to a filing with the Securities and Exchange Commission dated Nov. 14, 2025, Advent International, L.P. reduced its holdings in First Watch Restaurant Group by 9,400,000 shares.

The post-sale position stands at 5,289,784 shares, valued at $82.73 million as of Sept. 30, 2025.

What else to know

The firm’s post-sale stake in First Watch Restaurant Group represents 1.67% of reported 13F assets, down from 7.64% of AUM in the prior quarter.

Top holdings after the filing: 

• NIQ Global Intelligence (NIQ +2.94%): $2.35 billion (47.1% of AUM)
• Olaplex (OLPX +5.93%): $654.30 million (13.1% of AUM)
• CCC Intelligent Solutions (CCCS 1.20%): $340.19 million (6.8% of AUM)
• Definitive Healthcare (DH 3.13%): $268.44 million (5.4% of AUM)
• CI&T (CINT 5.14%): $255.64 million (5.1% of AUM)

As of Dec. 5, 2025, shares were priced at $17.70, down 10% over the past year, underperforming the S&P 500 by 23 percentage points.

The company’s five-year compound annual growth rate for sales is 22%.

Company Overview

Company snapshot

First Watch Restaurant Group:

• Operates and franchises daytime-focused restaurants under the First Watch brand, offering breakfast, brunch, and lunch menu items.
• Has locations across 28 U.S. states.
• Serves a broad customer base seeking fresh, made-to-order meals in a casual dining environment.

As of Sept. 28, 2025, First Watch Restaurant Group operated 548 company-owned restaurants and 72 franchised restaurants in the United States.

Foolish take

After holding a majority stake in First Watch Restaurant Group early in 2021, Advent International has slowly unwound its outsize position in the daytime eatery.

While First Watch now accounts for only 1.7% of Advent's portfolio, the latter still holds a 9% stake in the stock, highlighting the significant disparity in size between the two.

This just highlights that investors shouldn't necessarily worry about the sale, in my opinion.

From a Foolish perspective, there is a lot to like about this unique restaurant.

Its employees only work one shift, from 7 a.m. to 2:30 p.m., streamlining operations and boosting employee satisfaction.

First Watch's menus "are chef-driven and rotate five times a year," allowing the company to focus on customizable meals that appeal to younger generations.

With a per-person average cost of $17, First Watch's meals fit into the "affordable luxury" niche and offer a reasonably priced (and healthier) alternative to the food typically provided by outdated legacy restaurant chains.

Growing sales by 26%, same-store sales by 7%, and increasing its profit margins in the last quarter, First Watch looks like an attractive growth stock at just 8 times cash from operations (CFO).

Still only operating in 28 states -- and many of these with just a single-digit store count -- First Watch's growth story is still in its early chapters. Home to a discounted valuation and growing via its own CFO, I'm going to keep a very close eye on this promising growth stock.

Glossary

13F assets under management (AUM): The total value of securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Stake: The amount or percentage of ownership an investor holds in a company.
Top holdings: The largest investments in a fund's portfolio, typically by market value or percentage of assets.
Compound annual growth rate (CAGR): The mean annual growth rate of an investment over a specified period, assuming profits are reinvested.
Trailing twelve months (TTM): The 12 months ending with the most recent quarterly report.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Franchised restaurants: Restaurants operated by independent owners under a company's brand and business model, rather than by the company itself.