NASDAQ$FWRG

First Watch Restaurant Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

First Watch reported an increase in total revenues and net income, with improved operating margins.

First Watch Restaurant Group reported a 19.5% increase in total revenues to $258.6 million and a 12% increase in net income to $8.9 million for Q2 2024. The company's income from operations margin and restaurant level operating profit margin also improved.

  • Total revenues increased by 19.5% to $258.6 million.
  • Net income increased by 12% to $8.9 million, or $0.14 per diluted share.
  • Adjusted EBITDA increased by 37% to $35.3 million.
  • System-wide, 7 new restaurants were opened in 6 states.

Headline financials

Total Revenue

$259M

Previous: $216M+19.5%
EPS

$0.14

Previous: $0.13+7.7%
Same-Restaurant Sales Growth

-0.3%

Previous: 7.8%-103.8%
Restaurant Level Operating Profit Margin

21.9%

Previous: 20.9%+4.8%
Capital Expenditures

-$58.2M

Previous: -$29.7M-96.1%
Free Cash Flow

-$49.3M

Previous: -$21.7M-127.0%
Net Income

$8.9M

Previous: $7.96M+11.8%
Operating Income

$16.4M

Previous: $11.3M+45.0%
Gross Profit

-$198M

Previous: -$167M-18.4%
Cash & Equivalents

$45.1M

Previous: $66.8M-32.4%
Total Assets

$1.44B

Previous: $1.16B+23.6%
Stock-Based Comp

$2.45M

Previous: $2.13M+15.4%

Revenue & EPS history

First Watch · Revenue · Quarterly

$259M

Q2 2024+19.5%vs Q2 2023
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

First Watch updated its guidance for the fiscal year ending December 29, 2024.

Tailwinds

  • Total revenue growth in the range of 17.0% to 19.0%.
  • Adjusted EBITDA in the range of $106.0 million to $112.0 million.
  • Capital expenditures in the range of $125.0 million to $135.0 million invested primarily in new restaurant projects and planned remodels.
  • 52-56 new system-wide restaurants, net of 2 company-owned restaurant closures (45 to 48 new company-owned restaurants and 9 to 10 new franchise-owned restaurants)
  • Same-restaurant sales growth in a range of negative 2.0%-to-flat with same restaurant traffic growth in the negative mid-single digits

Headwinds

  • Same restaurant sales growth in a range of negative 2.0%-to-flat with same restaurant traffic growth in the negative mid-single digits
  • Blended tax rate of 31.0% to 33.0%
  • Uncertainty regarding the Russia and Ukraine war, Israel-Hamas war and the related impact on macroeconomic conditions, including inflation, as a result of such conflicts or other related events
  • Vulnerability to changes in economic conditions and consumer preferences
  • Inability to successfully open new restaurants or establish new markets

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 2024

Historical avgQ2 2024

-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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