NASDAQ$FWRG

First Watch Restaurant Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong Q3 revenue and earnings results, surpassing 500 system-wide restaurants.

First Watch reported a strong Q3 2023 with a 17.3% increase in total revenue, 4.8% same-restaurant sales growth, and a net income of $5.4 million. The company opened 13 new restaurants and acquired 11 franchise-owned restaurants, reaching a total of 505 system-wide restaurants. They also raised their 2023 same-restaurant sales growth, total revenue growth and Adjusted EBITDA guidance.

  • Total revenues increased 17.3% to $219.2 million.
  • Same-restaurant sales growth of 4.8%.
  • Net income increased to $5.4 million, or $0.09 per diluted share.
  • Opened 13 system-wide restaurants and acquired 11 operating franchise-owned restaurants, resulting in a total of 505 system-wide restaurants.

Headline financials

Total Revenue

$219M

Previous: $187M+17.3%
EPS (adj)

$0.09

Previous: $0.00+11742.1%
Same-Restaurant Sales Growth

4.8%

Previous: 12.0%-60.0%
Same-Restaurant Traffic Growth

-1.9%

Previous: 3.7%-151.4%
Restaurant Level Operating Profit Margin

18.7%

Previous: 17.3%+8.1%
Adjusted EBITDA

$21.6M

No prior period
Capital Expenditures

-$52.8M

Previous: -$45M-17.3%
Free Cash Flow

-$47.4M

Previous: -$44.9M-5.4%
Net Income

$5.42M

Previous: $46K+11678.3%
Operating Income

$7.74M

Previous: $2.62M+195.2%
Gross Profit

-$173M

Previous: -$151M-14.9%
Cash & Equivalents

$39.9M

Previous: $49.4M-19.1%
Total Assets

$1.21B

Previous: $1.09B+10.6%
Stock-Based Comp

$1.76M

Previous: $2.72M-35.1%

Revenue & EPS history

First Watch · Revenue · Quarterly

$219M

Q3 2023+17.3%vs Q3 2022
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 updates its guidance for the 53-week fiscal year ended December 31, 2023:

Tailwinds

  • Same-restaurant sales growth in the range of 7.0% to 8.0% with generally flat same-restaurant traffic growth
  • Total revenue growth in the range of 20.0% to 21.0%
  • Adjusted EBITDA in the range of $91.0 million to $92.0 million
  • Blended tax rate in the range of 26.0% to 28.0%
  • Total of 49-52 new system-wide restaurants, net of 1 company-owned restaurant closure (37 to 39 new company-owned restaurants and 13 to 14 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 Q3 2023

Historical avgQ3 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

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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