Advent International Sells Stake in First Watch Restaurant Group

Private equity firm reduces ownership in fast-casual dining chain

Mar. 15, 2026 at 7:22am

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Advent International L.P., a major private equity investor, has sold 9.4 million shares of First Watch Restaurant Group, Inc. (NASDAQ:FWRG), reducing its stake in the fast-casual dining chain by 64%. Advent previously owned 8.67% of First Watch, but now holds just 5.3 million shares, or 5.2% of the company.

Why it matters

The sale by Advent, a prominent private equity firm, could signal a shift in the company's long-term strategy or ownership structure. First Watch has been expanding rapidly in recent years, but faces challenges around valuation and profitability that may be driving Advent's decision to reduce its exposure.

The details

According to a regulatory filing, Advent sold the 9.4 million First Watch shares during the third quarter at an average price of $12.59 per share, generating proceeds of around $118 million. The sale reduced Advent's ownership stake in First Watch from 8.67% to just 5.2%. Several other First Watch insiders, including the CFO and other executives, also sold shares around the same time, collectively reducing their positions.

  • Advent sold the 9.4 million First Watch shares during the third quarter of 2026.
  • The insider sales, including by the CFO, occurred on March 10, 2026.

The players

Advent International L.P.

A major private equity firm that previously owned an 8.67% stake in First Watch Restaurant Group.

First Watch Restaurant Group, Inc.

A fast-casual dining chain focused on breakfast, brunch and lunch, with over 400 locations across the United States.

H. Melville Hope III

The Chief Financial Officer of First Watch Restaurant Group.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

The sale by Advent International, a prominent private equity firm, raises questions about the long-term strategy and ownership structure of First Watch Restaurant Group. The insider sales by executives also suggest potential concerns about the company's valuation and profitability outlook, which will be important factors to monitor going forward.