NASDAQ$FWRG

First Watch Restaurant Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

First Watch's Q3 2024 performance reflected strong restaurant-level operations amidst an uneven consumer backdrop.

First Watch reported a 14.8% increase in total revenues, reaching $251.6 million. Net income was $2.1 million, with Adjusted EBITDA growing 18% to $25.6 million. The company opened 9 new system-wide restaurants.

  • Total revenues increased by 14.8% to $251.6 million compared to Q3 2023.
  • System-wide sales increased by 8.0% to $291.8 million compared to Q3 2023.
  • Net income decreased to $2.1 million, or $0.03 per diluted share, compared to $5.4 million, or $0.09 per diluted share, in Q3 2023.
  • Adjusted EBITDA increased to $25.6 million compared to $21.6 million in Q3 2023.

Headline financials

Total Revenue

$252M

Previous: $219M+14.8%
EPS

$0.03

Previous: $0.09-66.7%
Same-Restaurant Sales Growth

-1.9%

Previous: 4.8%-139.6%
Same-Restaurant Traffic Growth

-4.4%

Previous: -1.9%-131.6%
Restaurant Level Operating Profit Margin

18.9%

Previous: 18.7%+1.1%
Adjusted EBITDA

$25.6M

Previous: $21.6M+18.6%
Capital Expenditures

-$87.3M

Previous: -$52.8M-65.4%
Free Cash Flow

-$85.2M

Previous: -$47.4M-79.9%
Net Income

$2.11M

Previous: $5.42M-61.0%
Operating Income

$6.31M

Previous: $7.74M-18.4%
Gross Profit

-$200M

Previous: -$173M-15.3%
Cash & Equivalents

$51.1M

Previous: $39.9M+28.1%
Total Assets

$1.48B

Previous: $1.21B+23.1%
Stock-Based Comp

$2.08M

Previous: $1.76M+17.7%

Revenue & EPS history

First Watch · Revenue · Quarterly

$252M

Q3 2024+14.8%vs Q3 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

The Company updated the following guidance metrics for the 52-week fiscal year ending December 29, 2024:

Tailwinds

  • Total revenue growth in the range of 16.5% to 17.0%
  • Adjusted EBITDA in the range of $110.0 million to $112.0 million
  • Total new system-wide restaurant openings anticipated to be 47, net of 2 company-owned restaurant closures (43 new company-owned restaurants and 6 new franchise-owned restaurants), which reflects the effect of five new restaurant openings delayed by Hurricane Milton and rescheduled to early 2025.
  • Blended tax rate of around 33.0%
  • Capital expenditures of around $130.0 million invested primarily in new restaurant projects and planned remodels

Headwinds

  • Same-restaurant sales growth of around negative 1.0%
  • Same restaurant traffic growth of negative 4.0%-4.5%

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 2024

Historical avgQ3 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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