NASDAQ$FWRG
First Watch Restaurant Group Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Reported strong financial results driven by same-restaurant sales growth and effective cost management.
First Watch Restaurant Group reported a strong Q2 2023 with a 17.3% increase in total revenues and a significant rise in net income. Same-restaurant sales grew by 7.8%, contributing to an income from operations margin of 5.3% and a restaurant level operating profit margin of 20.9%. The company also opened 9 new system-wide restaurants and raised its 2023 Adjusted EBITDA guidance.
- Total revenues increased by 17.3% to $216.3 million compared to Q2 2022.
- Same-restaurant sales grew by 7.8% driven by positive traffic growth.
- Net income increased to $8.0 million, or $0.13 per diluted share, from $2.7 million, or $0.05 per diluted share, in Q2 2022.
- Adjusted EBITDA increased to $25.8 million from $17.8 million in the prior year.
Headline financials
Revenue & EPS history
First Watch · Revenue · Quarterly
$216M
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 updates certain of its guidance for the 53-week fiscal year ended December 31, 2023:
Tailwinds
- Total revenue growth in the range of 18.0% to 21.0%
- Adjusted EBITDA in the range of $89.0 million to $92.0 million
- Blended tax rate in the range of 28.0% to 31.0%
- Same-restaurant sales growth in the range of 6.0% to 8.0% with marginally positive same-restaurant traffic growth
- Total of 45-51 new system-wide restaurants, net of 3 company-owned restaurant closures (38 to 42 new company-owned restaurants and 10 to 12 new franchise-owned restaurants)
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 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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