First Watch Restaurant Group Reports Growth in Q1 2025
In an exciting announcement, First Watch Restaurant Group, Inc. (NASDAQ: FWRG), recognized as the leading Daytime Dining concept, has revealed impressive financial results for the first quarter of 2025. The company reported total revenues of $282.2 million, reflecting a significant 16.4% increase compared to the same period last year, which had revenues of $242.4 million.
Key Financial Highlights
First Watch's financial performance in Q1 2025 showcased several key achievements that underscore its operational strength:
- Total revenues surged to $282.2 million in Q1 2025, up from $242.4 million in Q1 2024.
- System-wide sales rose by 11.5%, reaching $323.0 million compared to $289.6 million a year earlier.
- Same-restaurant sales demonstrated a modest growth of 0.7%, though there was a slight decline in same-restaurant traffic by 0.7%.
- While the income from operations margin decreased to 0.4%, this should be viewed in the context of ongoing strategic investments.
- Adjusted EBITDA decreased to $22.8 million from $28.6 million in the prior year.
Management's Perspective
Chris Tomasso, CEO and President of First Watch, expressed optimism about the company's trajectory, stating, "First quarter same restaurant traffic results are encouraging, continuing the trends we experienced exiting 2024. This reflects the strength and resilience of the First Watch brand. The success of our new restaurant openings is a vital long-term value creator. Despite uncertainties in the macroeconomic environment, our plans for growth and development for both 2024 and 2025 are exceeding expectations, and our pipeline remains robust."
Expansion and Growth Strategy
The company successfully opened 13 new system-wide restaurants across 10 states during the first quarter, bringing the total restaurant count to 584, which includes 498 company-owned and 86 franchise-owned locations. Such expansions are part of First Watch's strategy to enhance its market presence and cater to the rising demand for quality daytime dining. Looking ahead, the company has set ambitious plans for more new restaurants as well as remodels for existing locations.
Fiscal Year Guidance
In line with its positive performance, First Watch has updated its outlook for the fiscal year ending later in 2025. The following guidance metrics were shared:
- Expected Adjusted EBITDA is projected to be between $114.0 million and $119.0 million.
- The company anticipates a blended tax rate of 45.0% to 50.0%.
- Same-restaurant sales growth is expected to trend positively in low-single digits.
- Overall revenue growth is anticipated to approach 20% for the fiscal year.
- First Watch plans to open 59 to 64 new system-wide restaurants while accounting for a few closures.
- Capital expenditures are estimated to be between $150 million and $160 million, focusing primarily on new restaurant projects and remodels.
Conference Call Details
Interested shareholders can join a conference call hosted by Chris Tomasso and Mel Hope to discuss these financial results. The call is scheduled for 8:00 AM ET on the announced date. Those wishing to listen can dial in or join via the company's investor relations web page.
About First Watch Restaurant Group
First Watch is celebrated for its innovative breakfast, brunch, and lunch offerings, made using fresh ingredients. The company frequently earns local accolades for its quality dining experience. Its menu changes seasonally, ensuring customers encounter exciting new dishes along with beloved classics. With more than 580 locations in 31 states, its commitment to customer satisfaction continues to grow.
Contact Information
For further inquiries, please contact:
Steven L. Marotta
Phone: 941-500-1918
Email: investors@firstwatch.com
Frequently Asked Questions
What was the total revenue for First Watch in Q1 2025?
The total revenue for First Watch in Q1 2025 reached $282.2 million, marking a 16.4% increase from the previous year's revenue.
What is the Adjusted EBITDA forecast for First Watch in 2025?
First Watch expects its Adjusted EBITDA for the fiscal year 2025 to be in the range of $114 million to $119 million.
How many restaurants did First Watch open in Q1 2025?
First Watch opened 13 new system-wide restaurants during the first quarter of 2025.
What are the same-restaurant sales growth expectations for First Watch in 2025?
The company anticipates same-restaurant sales growth to be in the positive low-single digits for the fiscal year 2025.
How does First Watch differentiate itself in the dining market?
First Watch differentiates itself by offering a unique Daytime Dining experience with fresh, made-to-order meals, a rotating seasonal menu, and a commitment to quality ingredients.
