NASDAQ$FWRG

First Watch Restaurant Group Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

First Watch reported strong financial results driven by same-restaurant sales and traffic growth, and exceeded expectations despite a challenging operating environment.

First Watch Restaurant Group, Inc. reported a 36.1% increase in total revenues to $173.1 million, driven by a 27.2% increase in same-restaurant sales growth and a 21.9% increase in same-restaurant traffic growth. The company's net income was $4.6 million, or $0.08 per diluted share, compared to a net loss of $(2.0) million, or $(0.05) per diluted share in the same quarter of the previous year.

  • Total revenues increased by 36.1% to $173.1 million compared to Q1 2021.
  • Same-restaurant sales growth was 27.2%, driven by a 21.9% increase in same-restaurant traffic.
  • Income from operations margin increased to 4.5% compared to 3.1% in Q1 2021.
  • Net income was $4.6 million, or $0.08 per diluted share, compared to a net loss of $(2.0) million, or $(0.05) per diluted share in Q1 2021.

Headline financials

Total Revenue

$173M

Previous: $127M+36.1%
EPS (adj)

$0.08

Previous: -$0.05+260.0%
Same-Restaurant Sales Growth

27.2%

Previous: 14.1%+92.9%
Same-Restaurant Traffic Growth

21.9%

Previous: 2.2%+895.5%
Restaurant Level Operating Profit Margin

19.6%

Previous: 17.5%+12.0%
Adjusted EBITDA

$19.4M

Previous: $13M+49.2%
Capital Expenditures

-$11.4M

Previous: $10.5M-208.1%
Free Cash Flow

-$6.72M

Previous: -$4.68M-43.5%
Net Income

$4.64M

Previous: -$2.04M+327.2%
Operating Income

$7.76M

Previous: $3.85M+101.8%
Gross Profit

-$136M

Previous: $127M-207.1%
Cash & Equivalents

$46.5M

Previous: $33.5M+38.9%
Total Assets

$1.05B

No prior period
Stock-Based Comp

$2.29M

Previous: $129K+1678.3%

Revenue & EPS history

First Watch · Revenue · Quarterly

$173M

Q1 2022+36.1%vs Q1 2021
Beat estimate in 5 of 9 quarters(56%)
ActualEstimate

Revenue by segment

First Watch · $173M total across 2 segments · Q1 2022

  • Restaurant Sales
    $171M
  • Franchise Revenues
    $2.44M

Forward guidance

The Company reiterated its fiscal year 2022 guidance and provided an outlook for its 2022 blended tax rate.

Tailwinds

  • Same-restaurant sales growth in the high-single digits with continued positive traffic
  • Total revenue growth in excess of 15.0% relative to 2021
  • Adjusted EBITDA in the range of $67.0 million to $71.0 million
  • 30 to 35 new company-owned restaurants and 8 to 13 new franchise-owned restaurants

Headwinds

  • Blended tax rate of 33.0% to 34.0%
  • Capital expenditures in the range of $60.0 million to $70.0 million invested primarily in new restaurant projects, planned remodels and new in-restaurant technology

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.9%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-0.9%

Avg return

30 days after

39%

9 / 23 earnings

Positive

+15.5%

Q3 2024

Best reaction

-17.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-0.7%-16.0%
Q4 2025-10.7%-19.6%-29.6%
Q3 2025-3.9%-3.0%-1.3%
Q1 2025-17.6%-15.3%-19.8%
Q4 2024-7.0%-8.9%-3.6%
Q3 2024+15.5%+7.1%+5.9%
Q2 2024+10.8%+13.7%+11.0%
Q1 2024-13.1%-16.7%-24.9%
Q4 2023-3.8%-1.8%-10.0%
Q3 2023-0.3%+1.2%+12.1%
Q2 2023+2.8%+3.3%+2.6%
Q1 2023+2.3%+1.3%+6.8%
Q4 2022-3.3%-5.2%-6.0%
Q3 2022-11.4%-3.9%-12.4%
Q2 2022-0.2%+1.9%+2.7%
Q2 2021-0.2%+1.9%+2.7%
Q1 2021+8.9%+19.6%+32.5%
Q1 2022+8.9%+19.6%+32.5%
Q4 2021-1.7%-3.3%-6.0%
Q4 2019-1.7%-3.3%-6.0%
Q3 2021+1.8%-0.3%+2.0%
Q4 2020+1.8%-0.3%+2.0%
Q3 2020+1.8%-0.3%+2.0%
Q2 2020
Q1 2020

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