NASDAQ$FWRG

First Watch Restaurant Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Achieved strong results driven by same-restaurant sales and traffic growth, and raised full year guidance.

First Watch Restaurant Group reported strong Q2 2022 financial results, with system-wide sales increasing 20.0% and same-restaurant sales increasing 13.4%. The company also raised its fiscal year 2022 guidance.

  • System-wide sales increased 20.0% to $231.2 million.
  • Total revenues increased 19.8% to $184.5 million.
  • Same-restaurant sales growth was 13.4%, driven by an 8.1% increase in same-restaurant traffic.
  • Net income was $2.7 million, or $0.05 per diluted share.

Headline financials

Total Revenue

$184M

Previous: $154M+19.8%
EPS (adj)

$0.05

Previous: $0.09-44.4%
Same-Restaurant Sales Growth

13.4%

Previous: 403.5%-96.7%
Same-Restaurant Traffic Growth

8.1%

Previous: 360.9%-97.8%
Restaurant Level Operating Profit Margin

18.2%

Previous: 22.5%-19.1%
Capital Expenditures

-$26.6M

Previous: $8.66M-406.9%
Free Cash Flow

-$23.9M

Previous: $15.9M-249.7%
Net Income

$2.71M

Previous: $3.81M-28.9%
Operating Income

$5.05M

Previous: $12.3M-59.0%
Gross Profit

-$148M

Previous: $154M-195.8%
Cash & Equivalents

$53.6M

Previous: $48.3M+10.9%
Total Assets

$1.08B

No prior period
Stock-Based Comp

$2.81M

Previous: $187K+1401.6%

Revenue & EPS history

First Watch · Revenue · Quarterly

$184M

Q2 2022+19.8%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

First Watch · $211M total across 2 segments · Q1 2023

  • Restaurant Sales
    $208M+21.9%
  • Franchise Revenues
    $3.44M+40.7%

Forward guidance

The Company raises certain of its fiscal year 2022 guidance:

Tailwinds

  • Total revenue growth of approximately 20.0% relative to 2021
  • Adjusted EBITDA in the range of $70.0 million to $72.0 million
  • Same-restaurant sales growth in the range of 13.0% to 15.0% with continued positive traffic

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 Q2 2022

Historical avgQ2 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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