NASDAQ$FWRG
First Watch Restaurant Group Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Reported strong Q1 2023 financial results, driven by same-restaurant sales and traffic growth, along with increased operating profit margin and net income.
First Watch Restaurant Group reported a strong first quarter in 2023, with significant increases in total revenues, system-wide sales, and same-restaurant sales growth. The company's income from operations margin and restaurant level operating profit margin also increased, leading to a rise in net income and adjusted EBITDA. They also raised the 2023 Adjusted EBITDA guidance.
- Total revenues increased by 22.1% to $211.4 million compared to Q1 2022.
- Same-restaurant sales grew by 12.9% driven by same-restaurant traffic growth of 5.1%.
- Net income increased to $9.4 million, or $0.15 per diluted share, compared to $4.6 million, or $0.08 per diluted share, in Q1 2022.
- Adjusted EBITDA increased to $27.4 million from $19.4 million in Q1 2022.
Headline financials
Revenue & EPS history
First Watch · Revenue · Quarterly
$211M
Revenue by segment
First Watch · $211M total across 2 segments · Q1 2023
- Restaurant Sales$208M+21.9%98.4%
- Franchise Revenues$3.44M+40.7%1.6%
Forward guidance
The Company raises certain of its guidance for the 53-week fiscal year ended December 31, 2023:
Tailwinds
- Total revenue growth in the range of 16.0% to 20.0%
- Adjusted EBITDA in the range of $80.0 million to $85.0 million
- Same-restaurant sales growth in the range of 6.0% to 8.0%
- Positive same-restaurant traffic growth
- Total of 45-51 new system-wide restaurants
Headwinds
- Includes approximately 1.0% in total revenue growth associated with May 2023 franchise acquisition
- Includes approximately $1.0 million in Adjusted EBITDA associated with May 2023 franchise acquisition
- Updated blended tax rate in the range of 33.0% to 36.0%
- Net of 3 company-owned restaurant closures
- Capital expenditures in the range of $100.0 million to $110.0 million
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 2023
-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
| Quarter | Report date | Reaction (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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