NASDAQ$FWRG

First Watch Restaurant Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong financial results with revenue increase and positive same-restaurant sales growth.

First Watch Restaurant Group reported a 14.2% increase in total revenues to $185.7 million and a 7.7% growth in same-restaurant sales. The company's net loss improved to $(0.5) million. They opened 16 system-wide restaurants during the quarter.

  • Total revenues increased by 14.2% to $185.7 million.
  • System-wide sales increased by 15.6% to $234.2 million.
  • Same-restaurant sales grew by 7.7%.
  • Net loss improved to $(0.5) million.

Headline financials

Total Revenue

$186M

Previous: $163M+14.2%
EPS (adj)

-$0.01

Previous: -$0.08+87.5%
Same-Restaurant Sales Growth

7.7%

Previous: 36.7%-79.0%
Same-Restaurant Traffic Growth

-0.6%

Previous: 31.9%-101.9%
Restaurant Level Operating Profit Margin

16.7%

Previous: 18.2%-8.2%
Capital Expenditures

$17.2M

Previous: $8.25M+109.0%
Free Cash Flow

-$941K

Previous: $10.5M-109.0%
Net Income

-$500K

Previous: -$4.65M+89.3%
Operating Income

$1.5M

Previous: -$1.07M+240.6%
Gross Profit

$33.1M

Previous: $32.3M+2.3%
Cash & Equivalents

$49.7M

Previous: $51.9M-4.2%
Total Assets

$1.1B

Previous: $1.05B+5.5%
Stock-Based Comp

$2.55M

Previous: $7.85M-67.5%

Revenue & EPS history

First Watch · Revenue · Quarterly

$186M

Q4 2022+14.2%vs Q4 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

For fiscal year 2023, First Watch expects same-restaurant sales growth of 6.0% to 8.0% and total revenue growth of 15.0% to 19.0%.

Tailwinds

  • Same-restaurant sales growth of 6.0% to 8.0% with continued positive same-restaurant traffic growth
  • Total revenue growth of 15.0% to 19.0%
  • Adjusted EBITDA in the range of $76.0 million to $81.0 million
  • 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)
  • Capital expenditures in the range of $100.0 million to $110.0 million invested primarily in new restaurant projects and planned remodels

Headwinds

  • Uncertainty regarding ongoing hostility between Russia and Ukraine and the related impact on macroeconomic conditions, including inflation, as a result of such conflict or other related events
  • Vulnerability to changes in economic conditions and consumer preferences
  • Inability to successfully open new restaurants or establish new markets
  • Inability to effectively manage growth
  • Adverse effects of the COVID-19 pandemic or other infectious diseases

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 Q4 2022

Historical avgQ4 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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