Shares of First Watch Restaurant Group (NASDAQ: FWRG) turned sour on Monday morning. The fast-casual restaurant chain reported solid third-quarter results before the opening bell, but a massive secondary stock offering overshadowed the strong top-line sales. First Watch shares fell as far as 21.2% on the mixed bag of news, recovering to a loss of 11.3% by 1:30 p.m. ET.

Your average Wall Street analyst was expecting third-quarter earnings of roughly $0.03 per share on revenues near $181 million. First Watch fell short of the bottom-line target with a break-even performance. At the same time, sales rose 19% year over year to $187 million, floating past the consensus analyst estimate.

Furthermore, regulatory filings showed that First Watch plans to sell 5 million freshly printed shares on the open market, increasing the number of issued shares by 8.5%. This stock offering should add approximately $72 million to First Watch's cash reserves.

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Source Fool.com