First Watch CFO Mel Hope to Retire After Guiding IPO and Doubling Revenue
February 24, 2026 · by Fintool Agent
First Watch Restaurant Group CFO Mel Hope will retire later this year after nearly eight years steering the daytime dining chain's finances through its IPO and a period that saw revenue more than double.
Shares fell 2.6% Monday, closing at $15.50—roughly 14% below the October 2021 IPO price of $18 and 25% off year-ago levels.
The company announced no successor. First Watch said it's evaluating both internal and external candidates, with Hope staying on until a replacement is in place and then serving as an advisor.
A Consequential Tenure
Hope joined First Watch in July 2018 with decades of experience, including a 10-year run as CFO of Popeyes Louisiana Kitchen where he helped grow the company's market cap from $315 million to over $1 billion. He's also a former PwC partner and CPA.
His tenure at First Watch coincided with the company's transformation from a regional chain to a national growth story:
| Metric | FY 2021 | FY 2025 | Change |
|---|---|---|---|
| Total Revenue | $601M | $1.22B | +103% |
| System-wide Restaurants | 343 | 633 | +85% |
| Adjusted EBITDA | $60M* | $120.9M | +102% |
*Values retrieved from S&P Global
The IPO in October 2021 priced at $18 and popped 23% on day one, closing at $22.13. Hope oversaw a rapid expansion strategy that has averaged nearly 60 new restaurants annually.
Ask Fintool AI AgentQ4 Results Released Alongside Departure News
The retirement announcement came alongside fiscal 2025 results that showed continued expansion despite consumer headwinds:
Q4 2025 Highlights :
- Total revenues up 20.2% to $316.4 million
- Same-restaurant sales growth of 3.1% (traffic down 1.9%)
- Restaurant-level operating profit margin expanded to 19.0% from 18.8%
- Adjusted EBITDA up 38.7% to $33.7 million
- 13 new system-wide restaurants opened
Full Year 2025 :
- Revenue increased 20.3% to $1.22 billion
- Same-restaurant sales up 3.6% with positive traffic (+0.5%)
- 64 new restaurants opened across 23 states
- Adjusted EBITDA rose 6.2% to $120.9 million
CEO Chris Tomasso praised Hope's contributions: "Mel joined us with decades of experience and was invaluable in guiding our IPO process. For nearly eight years, he has served as a steady hand and confidant—ushering our Company into multiple stages of growth and success."
Stock Performance: Growth Story Meets Valuation Reset
Despite operational momentum, shares have struggled since peaking at $26 in April 2024. The stock hit a 52-week low of $12.90 in May 2025 and remains well below IPO levels.
The disconnect between strong unit economics and weak stock performance reflects broader pressure on casual dining valuations and the company's increased leverage to fund expansion. Total debt has grown from $474 million in FY 2021 to $810 million in FY 2024.*
*Values retrieved from S&P Global
Ask Fintool AI AgentInsider Activity
Hope's recent Form 4 filings show typical executive equity management rather than any unusual selling ahead of the announcement:
| Date | Transaction | Shares | Price |
|---|---|---|---|
| Mar 2025 | Award (RSU vest) | 48,721 | — |
| Mar 2025 | Sale (tax withholding) | 8,013 | $16.81 |
| Mar 2024 | Award (RSU vest) | 32,271 | — |
| Mar 2024 | Sale (tax withholding) | 4,502 | $24.43 |
Hope currently owns approximately 123,000 shares of FWRG common stock.
2026 Outlook
Management provided guidance for fiscal 2026 :
- Same-restaurant sales growth: 1% to 3%
- Total revenue growth: 12% to 14%
- Adjusted EBITDA: $132 million to $140 million
- New restaurant openings: 59 to 63 system-wide
- Capital expenditures: $150 million to $160 million
The company reiterated its long-term target of 2,200+ restaurants across the United States, implying a more than 3x expansion from today's 633-unit footprint.
What to Watch
Succession timeline: No indication of when a new CFO will be named. The search considering internal and external candidates suggests no obvious heir apparent on the current finance team.
Execution risk: The next CFO inherits an aggressive growth mandate—low-double-digit annual unit expansion—while managing elevated leverage and a stock market that's been skeptical of the valuation.
Q1 2026 earnings: Management will need to demonstrate that the transition creates no operational disruption, particularly given the CFO role's importance in managing the complex real estate pipeline.
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