First Watch Restaurant Group, Inc. ( (FWRG) ) has released its Q3 earnings. Here is a breakdown of the information First Watch Restaurant Group, Inc. presented to its investors.
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First Watch Restaurant Group, Inc. is a prominent Daytime Dining company specializing in breakfast, brunch, and lunch offerings, known for its fresh ingredients and rotating seasonal menu. In its latest earnings report for Q3 2024, the company highlighted a 14.8% increase in total revenues, reaching $251.6 million, and an 18% growth in Adjusted EBITDA. The company faced a decline in net income to $2.1 million from $5.4 million in the previous year, despite opening nine new restaurants across eight states.
Key financial metrics showed mixed results, with system-wide sales climbing 8% to $291.8 million, while same-restaurant sales and traffic experienced negative growth. Despite these challenges, the restaurant-level operating profit margin slightly improved to 18.9%. The company navigated operational disruptions due to Hurricane Milton with minimal impact, although some restaurant openings were postponed to early 2025.
The company’s strategic focus remains on expanding its footprint, with plans to grow to 2,200 locations. For the fiscal year 2024, First Watch anticipates a total revenue growth of 16.5% to 17.0%, alongside an Adjusted EBITDA forecast of $110.0 million to $112.0 million. Despite a challenging economic environment, First Watch is committed to maintaining its growth trajectory and enhancing operational efficiency.
Looking ahead, First Watch’s management remains optimistic about their growth strategy and operational resilience. The company’s emphasis on maintaining strong employee relations and real estate development is poised to support its long-term expansion goals.
