Black Rock Coffee Bar, Inc. (BRCB) vs First Watch Restaurant Group, Inc. (FWRG)

Black Rock Coffee Bar, Inc. and First Watch Restaurant Group, Inc. are both Restaurants companies. First Watch Restaurant Group, Inc. is the larger, with a market value of $786.2M against $520.8M — 1.5× the size. Black Rock Coffee Bar, Inc. has negative trailing earnings, so its P/E is not meaningful; First Watch Restaurant Group, Inc. trades at 42.9×. First Watch Restaurant Group, Inc. has the higher net margin (1.35% vs 0.69%) and the higher return on invested capital (1.95% vs 1.09%). Across the 16 metrics below, First Watch Restaurant Group, Inc. leads on 12 and Black Rock Coffee Bar, Inc. on 4.

Valuation

Metric BRCB FWRG Restaurants median
P/E n/m 42.90 25.42
P/S 1.01 0.60 1.13
P/B 2.07 1.25 2.10
Price to free cash flow n/m n/m 16.75
EV/EBITDA 14.68 9.48 12.55
EV/Sales 1.08 0.81 1.33
Earnings yield (9.11%) 2.33% 2.06%
Free cash flow yield (17.86%) (2.75%) 3.44%

Profitability

Metric BRCB FWRG Restaurants median
Gross margin 72.74% 20.63% 39.04%
Operating margin 0.97% 2.14% 4.43%
Net margin 0.69% 1.35% 1.75%
Free cash flow margin (18.08%) (1.66%) 2.13%
Return on equity (2.07%) 2.88% 3.07%
Return on assets 0.78% 1.02% 1.41%
Return on invested capital 1.09% 1.95% 2.91%

Growth

Metric BRCB FWRG Restaurants median
Revenue growth (TTM) — 19.27% 5.52%
EPS growth (last fiscal year) — 3.33% (4.30%)
Revenue growth, 5-year CAGR — 28.99% 10.57%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric BRCB FWRG Restaurants median
Debt to equity 0.28 0.46 0.20
Current ratio 0.71 0.27 0.81
Net debt to EBITDA (0.12) 2.53 0.43

Dividend

Metric BRCB FWRG Restaurants median
Dividend yield — — 1.88%
Payout ratio — — 0.45

Size

Metric BRCB FWRG Restaurants median
Market cap 520.76m 786.22m 581.93m

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