[Financial & Operational Highlights](index=1&type=section&id=Highlights) In Q1 2025, First Watch achieved a 16.4% increase in total revenues to $282.2 million, though profitability declined with a net loss of $(0.8) million and Adjusted EBITDA decreasing to $22.8 million Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $282.2M | $242.4M | +16.4% | | System-wide Sales | $323.0M | $289.6M | +11.5% | | Same-Restaurant Sales Growth | 0.7% | N/A | - | | Same-Restaurant Traffic Growth | -0.7% | N/A | - | | Income from Operations Margin | 0.4% | 5.1% | -4.7 p.p. | | Restaurant Level Operating Profit Margin* | 16.5% | 20.8% | -4.3 p.p. | | Net (Loss) Income | $(0.8)M | $7.2M | -111.1% | | Diluted EPS | $(0.01) | $0.12 | -108.3% | | Adjusted EBITDA* | $22.8M | $28.6M | -20.3% | - The company opened **13 new system-wide restaurants** and had **1 closure**, bringing the total to **584 restaurants** (**498 company-owned**, **86 franchise-owned**) across **30 states**[6](index=6&type=chunk) - CEO Chris Tomasso noted that Q1 same-restaurant traffic results were encouraging and continued positive trends from late 2024, with new restaurant openings in 2024 and 2025 exceeding expectations[3](index=3&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Updated%20Outlook%20Fiscal%20Year%202025) The company updated its full-year 2025 guidance, projecting total revenue growth of approximately 20% and an Adjusted EBITDA between $114.0 million and $119.0 million, alongside plans to open 59 to 64 new system-wide restaurants Updated Fiscal Year 2025 Guidance | Metric | Guidance Range/Value | | :--- | :--- | | Total Revenue Growth | ~20.0% (includes ~4% from acquisitions) | | Same-Restaurant Sales Growth | Positive low-single digits | | Same-Restaurant Traffic Growth | Flat-to-slightly positive | | Adjusted EBITDA | $114.0M - $119.0M | | New System-Wide Restaurants | 59 to 64 (net of 3 closures) | | Capital Expenditures | $150.0M - $160.0M | | Blended Tax Rate | 45.0% - 50.0% | [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed financial statements and non-GAAP reconciliations, highlighting a year-over-year revenue increase but a decline into a net loss due to rising operating costs, and a decrease in key non-GAAP metrics [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20%28LOSS%29) For Q1 2025, total revenues grew to $282.2 million, but significant increases in operating expenses, particularly food and beverage and labor costs, led to a net loss of $(0.8) million, a stark contrast to the prior-year's net income Consolidated Statement of Operations Highlights (in thousands) | Account | Q1 2025 (ended Mar 30) | Q1 2024 (ended Mar 31) | | :--- | :--- | :--- | | **Total Revenues** | **$282,240** | **$242,449** | | Food and beverage costs | $66,647 | $52,184 | | Labor and other related expenses | $96,754 | $79,735 | | Total operating costs and expenses | $281,127 | $230,163 | | **Income from operations** | **$1,113** | **$12,286** | | **Net (loss) income** | **$(829)** | **$7,214** | | Net (loss) income per share - diluted | $(0.01) | $0.12 | [Non-GAAP Financial Measures Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section details the reconciliation of GAAP measures to the company's preferred non-GAAP metrics, showing that Adjusted EBITDA for Q1 2025 was $22.8 million, down from $28.6 million, and Restaurant Level Operating Profit fell to $46.1 million from $49.9 million Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(829) | $7,214 | | Depreciation and amortization | 16,557 | 12,271 | | Interest expense | 3,334 | 2,599 | | Income tax (benefit) expense | (708) | 2,799 | | Other adjustments (Stock-based comp, etc.) | 4,399 | 3,382 | | **Adjusted EBITDA** | **$22,753** | **$28,590** | | **Adjusted EBITDA margin** | **8.1%** | **11.8%** | Reconciliation of Income from Operations to Restaurant Level Operating Profit (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from operations | $1,113 | $12,286 | | Less: Franchise revenues | (2,649) | (3,141) | | Add: General and administrative expenses | 30,219 | 27,658 | | Add: Depreciation and amortization | 16,557 | 12,271 | | Add: Other adjustments | 882 | 788 | | **Restaurant level operating profit** | **$46,122** | **$49,862** | | **Restaurant level operating profit margin** | **16.5%** | **20.8%** | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides context for the financial report, including definitions of key operational and non-GAAP metrics, a standard forward-looking statements disclaimer outlining potential business risks, and a corporate overview describing First Watch's market position [Definitions of Key Metrics](index=3&type=section&id=Definitions) The report defines key terms for clarity, including 'Same-restaurant sales growth' for year-over-year sales changes and non-GAAP measures like 'Adjusted EBITDA' and 'Restaurant level operating profit' which exclude specific corporate-level expenses - **Same-restaurant sales growth:** Defined as the percentage change in year-over-year sales for company-owned restaurants open for **18 months or longer**, based on **383 restaurants** for Q1 2025[13](index=13&type=chunk) - **Adjusted EBITDA:** A non-GAAP measure defined as net income (loss) before depreciation and amortization, interest expense, income taxes, and other items not considered part of ongoing core operating performance[15](index=15&type=chunk) - **Restaurant level operating profit:** A non-GAAP measure defined as restaurant sales less direct restaurant operating expenses (e.g., food, labor, occupancy), excluding corporate-level expenses[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a legal safe harbor, cautioning that the report's projections are subject to significant risks and uncertainties, including changes in consumer preferences, economic conditions, and operational challenges - The press release contains forward-looking statements that are not guarantees of future performance and are subject to risks and uncertainties[20](index=20&type=chunk) - Important risk factors include: changes in consumer preferences and economic conditions (inflation, recession), challenges in opening new restaurants, supply chain disruptions, competition, and labor shortages[20](index=20&type=chunk) [About First Watch](index=3&type=section&id=About%20First%20Watch) First Watch is a leading 'Daytime Dining' restaurant concept focused on made-to-order breakfast, brunch, and lunch, operating over 580 restaurants in 31 states and recognized for its fresh ingredients and workplace culture - First Watch is positioned as the leading Daytime Dining concept serving made-to-order breakfast, brunch, and lunch with fresh ingredients[19](index=19&type=chunk) - The company operates more than **580 restaurants** in **31 states**[19](index=19&type=chunk) - Recent awards include being named **2024's 1 Most Loved Workplace® in America** by Newsweek and the **top restaurant brand in Yelp's 2023 list of most-loved brands**[19](index=19&type=chunk)

Financial Performance - Total revenues increased by 16.4% to $282.2 million in Q1 2025 from $242.4 million in Q1 2024 [7] - System-wide sales rose by 11.5% to $323.0 million in Q1 2025 from $289.6 million in Q1 2024 [7] - Net loss was $(0.8) million, or $(0.01) per diluted share, in Q1 2025 compared to net income of $7.2 million, or $0.12 per diluted share, in Q1 2024 [7][36] - Adjusted EBITDA decreased to $22.8 million in Q1 2025 from $28.6 million in Q1 2024 [7][30] Operational Highlights - Opened 13 new system-wide restaurants across 10 states, resulting in a total of 584 system-wide restaurants [7] - Same-restaurant sales growth was 0.7%, while same-restaurant traffic growth was negative 0.7% [7] - Income from operations margin decreased to 0.4% in Q1 2025 from 5.1% in Q1 2024 [7] Future Outlook - The company updated its guidance for the fiscal year 2025, projecting total revenue growth of approximately 20% [8] - Expected Adjusted EBITDA in the range of $114.0 million to $119.0 million for the fiscal year [8] - Plans to open 59 to 64 new system-wide restaurants, net of closures, with capital expenditures estimated between $150.0 million and $160.0 million [8]

Core Viewpoint - First Watch Restaurant Group, Inc. has completed the acquisition of 16 franchise-owned restaurants in North Carolina and South Carolina for $49 million, marking the second largest franchisee deal in its history and emphasizing its long-term growth strategy [1][2]. Acquisition Details - The acquisition includes 16 locations in the Charlotte and Concord DMAs in North Carolina, and the Columbia and Greenville DMAs in South Carolina [2]. - This deal is part of First Watch's strategy to solidify corporate ownership along the East Coast and to provide additional territories for organic growth [2]. - Since May 2023, First Watch has acquired a total of 64 franchised restaurants across eight acquisitions [3]. Company Overview - First Watch is recognized for its Daytime Dining concept, serving made-to-order breakfast, brunch, and lunch with fresh ingredients [4]. - The company operates over 570 restaurants across 30 states and has received numerous accolades, including being named the 1 Most Loved Workplace in America for 2024 [4].

Core Insights - First Watch Restaurant Group, Inc. is expanding its presence in New England with the opening of its first downtown Boston location at 777 Boylston St. in late 2025, following its earlier entry into Massachusetts with a location in Hanover [1][8] - The new restaurant will feature a chef-driven menu that emphasizes fresh, high-quality ingredients and a commitment to socially responsible sourcing, including coffee from women-owned farms [2][3] - The Boston location will create approximately 30 new jobs and uphold a "No Night Shifts Ever" policy to prioritize employee wellbeing [5] Company Overview - First Watch is recognized as a leading daytime dining concept, serving made-to-order breakfast, brunch, and lunch with a rotating seasonal menu [7] - The company has received numerous accolades, including being named the "1 Most Loved Workplace in America" by Newsweek and the Best Practice Institute [7] - First Watch operates over 570 restaurants across 30 states, showcasing a diverse menu that includes breakfast classics and innovative dishes [7]

Core Insights - First Watch Restaurant Group, Inc. plans to release its first quarter 2025 financial results on May 6, 2025, before the market opens [1] - A conference call and webcast will follow the earnings release at 8:00 AM ET, hosted by the CEO and CFO [2] Company Overview - First Watch is a leading Daytime Dining concept specializing in made-to-order breakfast, brunch, and lunch using fresh ingredients [3] - The company has received numerous accolades, including being named 2024's 1 Most Loved Workplace in America and the top restaurant brand in Yelp's inaugural list of the top 50 most-loved brands in the U.S. [3] - First Watch operates over 570 restaurants across 30 states, with a menu that rotates five times a year [3]

First Watch Restaurant Group, Inc. (FWRG) acquired three franchise-owned restaurants in Missouri, along with the development rights for the area. The move is expected to support the company’s growth strategy through increased control over operations and future expansion.The company will share more details about the transaction when it announces results for the fiscal first quarter ended March 30, 2025.FWRG Bolsters Portfolio With Latest AcquisitionsThe company added Lee’s Summit, West Columbia and South Col ...

Core Insights - First Watch Restaurant Group, Inc. has announced the acquisition of three franchise-owned restaurants in Missouri, emphasizing its long-term growth strategy and value creation [1][2] - The company has now acquired a total of 48 franchised restaurants through seven acquisitions since May 2023, indicating a strong focus on expanding its footprint [2] Company Overview - First Watch is recognized as a leading Daytime Dining concept, serving made-to-order breakfast, brunch, and lunch with a focus on fresh ingredients [3] - The company operates over 570 restaurants across 30 states and has received numerous accolades, including being named the 1 Most Loved Workplace in America for 2024 [3] Strategic Importance - The acquisition of the Missouri restaurants is seen as a strategic move to enhance community connections and provide opportunities for organic growth in a key market area [2] - The associated development rights from the acquisition represent potential for future expansion, aligning with the company's growth objectives [2]

Core Viewpoint - First Watch Restaurant Group is positioned as a small-cap growth stock with potential to triple in size over the next decade, focusing on high-quality breakfast offerings and a diverse menu [1] Group 1: Stock Performance and Valuation - The stock price is currently $18.42, with a 12-month price target of $22.45, indicating a potential upside of 21.90% [4] - Valuation concerns have impacted stock performance, with growth slowing from high 20% to mid-teens CAGR, but expected to stabilize for at least a decade [3] - Analysts have rated the stock positively, with 90% rating it as Buy or higher, and only one Hold [4] Group 2: Growth Prospects - The company is forecasted to achieve a 20% total revenue growth for the year, with a solid 16% revenue gain expected in Q1 F2025 [7] - First Watch plans to increase its store count by over 10% in 2025, building on a 9.6% increase in F2024 [8] - The balance sheet shows reduced cash but improved total assets and equity, with low leverage at 0.31X equity, supporting growth plans [9] Group 3: Market Sentiment and Trends - Institutional ownership is high at about 96%, with increased buying activity and a rising short interest, indicating potential for a short squeeze [6] - Recent upgrades and positive analyst sentiment suggest a favorable outlook for the stock, with a consensus forecasting a 25% upside [5] - The stock has shown resilience, rebounding after a market pullback and confirming support at the $16 level [10]

Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Company Analysis - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]

Core Insights - First Watch Restaurant Group, Inc. (FWRG) reported mixed results for the fourth quarter of fiscal 2024, with earnings missing expectations while revenues exceeded them [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for Q4 were 1 cent, missing the Zacks Consensus Estimate of 2 cents, and down from 4 cents in the prior-year quarter [2] - Quarterly revenues reached $263.3 million, beating the consensus mark by 0.4% and increasing by 7.6% year-over-year, driven by new restaurant openings and menu price increases [3] - Same-restaurant sales declined by 0.3%, and same-restaurant traffic decreased by 3% [3] - General and administrative expenses rose to $30.7 million from $30 million in the prior-year quarter [4] - Restaurant-level operating profit was $49 million, up from $46.8 million in the prior-year quarter, with a margin of 18.8%, down from 19.4% [4] - Net income for the quarter was $0.7 million, down from $2.6 million in the prior-year quarter, with a net income margin decline of 80 basis points to 0.3% [5] - Adjusted EBITDA for Q4 was $24.3 million, slightly down from $24.6 million in the prior-year quarter, with a margin decline of 90 basis points to 9.2% [5] Fiscal Year Highlights - Total revenues for fiscal 2024 were $1.02 billion, up from $891.6 million in fiscal 2023 [6] - Adjusted EBITDA for fiscal 2024 totaled $113.8 million, compared to $99.5 million in fiscal 2023 [6] - Diluted EPS for fiscal 2024 was 30 cents, down from 41 cents in the previous year [6] Future Outlook - For fiscal 2025, the company anticipates low single-digit growth in same-restaurant sales, with total revenues projected to increase by approximately 20% [7] - Adjusted EBITDA is expected to range between $124 million and $130 million [7] - Expansion plans include opening 59 to 64 new system-wide restaurants, with capital expenditures estimated between $150 million and $160 million [8] - The company reaffirms long-term financial targets, including low double-digit percentage unit growth and approximately 3.5% same-restaurant sales growth [9]