Financial Data and Key Metrics Changes - Total revenue increased by 25.6% year-over-year, reaching $316 million in Q3 2025, driven by strong same-restaurant sales growth of 7.1% and positive traffic growth of 2.6% [20][21] - Restaurant-level operating profit margin improved to 19.7%, an increase of 80 basis points compared to the same quarter last year [23] - Adjusted EBITDA rose to $34.1 million, up $8.5 million from the previous year, with an adjusted EBITDA margin of 10.8% [23][24] Business Line Data and Key Metrics Changes - The company opened 21 new system-wide restaurants in Q3 2025, with 18 being company-owned and 3 franchise-owned, bringing the total to 620 system-wide restaurants [24] - Newly opened restaurants performed exceptionally well, with some locations achieving opening week sales exceeding 185% of the average [10][24] Market Data and Key Metrics Changes - Traffic growth in the third-party delivery channel increased significantly, contributing over 3% to same-restaurant sales in the quarter [55] - The month of September marked the highest rate of same-restaurant sales growth for the year, coinciding with the launch of the fall seasonal menu [22] Company Strategy and Development Direction - The company aims to open 63-64 new restaurants in 2025, representing nearly 11% system-wide growth, with a focus on maintaining a strong market position in daytime dining [5][12] - A strategic emphasis on second-generation sites has been noted, with about 50% of new openings in 2025 being second-generation locations [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging environment while maintaining strong growth, emphasizing a long-term focus on market position and traffic growth over short-term margin protection [6][19] - The company updated its guidance for same-restaurant sales growth to approximately 4% and total revenue growth to 20-21% for the remainder of the year [25] Other Important Information - The company has been recognized as America's number one most loved workplace for two consecutive years, highlighting its commitment to employee satisfaction and culture [15] - Enhanced marketing investments have shown positive results, with plans to expand marketing efforts in 2026 based on insights gained from current campaigns [16][34] Q&A Session Summary Question: Can you help us deconstruct the traffic results? - Management noted that both in-restaurant and off-premise channels contributed to traffic growth, with improvements in restaurant dining observed [30] Question: What is helping bolster results at new openings? - The success of new openings is attributed to prime locations, effective marketing strategies, and operational excellence [31][32] Question: What are your plans to expand marketing efforts in 2026? - While specific plans for 2026 were not disclosed, management expressed optimism about expanding marketing initiatives based on successful campaigns in 2025 [34] Question: Can you elaborate on the impact of marketing on sales trends? - Management indicated that awareness has increased steadily, contributing to consistent results across geographies [46] Question: What is the outlook for commodity and labor inflation? - Management expects commodity inflation to be approximately 6% and labor inflation to be around 4% for the upcoming year [25][57]

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES Q3 2025 SUPPLEMENTAL INFORMATION November 4, 2025 The forward-looking statements included in this presentation are made only as of the date hereof and are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. NON-GAAP FINANCIAL MEASURE ...

Financial Performance - Total revenues for the thirteen weeks ended September 28, 2025, were $316.022 million, a 25.6% increase from $251.609 million for the same period in 2024[13] - Restaurant sales reached $313.636 million for the thirteen weeks ended September 28, 2025, compared to $248.965 million in the prior year, reflecting a 26.0% growth[13] - Net income for the thirteen weeks ended September 28, 2025, was $2.991 million, up from $2.112 million in the same quarter of 2024, representing a 41.5% increase[13] - Operating income for the thirteen weeks ended September 28, 2025, was $10.050 million, compared to $6.313 million in the prior year, marking a 59.5% increase[13] - The company reported a comprehensive income of $3.057 million for the thirteen weeks ended September 28, 2025, compared to a loss of $560,000 in the same period of 2024[13] - For the thirty-nine weeks ended September 28, 2025, net income was $4,268,000, a decrease from $18,226,000 for the same period in 2024[17] - Basic net income per common share increased to $0.05 for the thirteen weeks ended September 28, 2025, up from $0.03 in the same period of 2024[78] Assets and Liabilities - Total assets as of September 28, 2025, were $1.720 billion, an increase from $1.514 billion as of December 29, 2024[11] - Total liabilities increased to $1.113 billion as of September 28, 2025, compared to $918.967 million at the end of the previous fiscal year[11] - The company’s accumulated deficit decreased to $49.554 million as of September 28, 2025, from $53.822 million at the end of the previous fiscal year[11] - As of September 28, 2025, total debt, net was $264.1 million, an increase from $198.3 million as of December 29, 2024[40] - Total accrued liabilities increased to $49.8 million as of September 28, 2025, compared to $39.6 million as of December 29, 2024[39] Cash Flow and Investments - Net cash provided by operating activities was $107,452,000 for the thirty-nine weeks ended September 28, 2025, compared to $92,749,000 in 2024, indicating a 15.8% increase[17] - Capital expenditures for the same period were $120,108,000, up from $87,272,000 in 2024, marking a 37.7% increase[17] - The company reported a net cash used in investing activities of $175,771,000 for the thirty-nine weeks ended September 28, 2025, compared to $165,919,000 in 2024[17] - Proceeds from borrowings on the revolving credit facility amounted to $261,500,000 in 2025, significantly higher than $22,500,000 in 2024[17] - The ending cash and cash equivalents balance was $20,714,000 as of September 28, 2025, down from $51,129,000 in 2024[17] Expenses - Labor and related expenses for the thirteen weeks ended September 28, 2025, were $102,387,000, a 22.2% increase from $83,756,000 in the same period of 2024[76] - Occupancy expenses increased to $25,891,000 for the thirteen weeks ended September 28, 2025, compared to $21,075,000 in the same period of 2024, representing a 22.9% increase[76] - General and administrative expenses for the thirteen weeks ended September 28, 2025, were $30,869,000, up from $25,604,000 in the same period of 2024, indicating a 20.5% increase[76] - Depreciation and amortization for the same period was $54,355,000, compared to $41,960,000 in 2024, reflecting a 29.5% increase[17] - Stock-based compensation increased to $7,926,000 in 2025 from $6,394,000 in 2024, representing an increase of 24%[17] Acquisitions and Growth - The company acquired 19 franchise-operated First Watch restaurants in two transactions during the second quarter of 2025, with a total purchase price of $56.2 million[33][34] - Goodwill recognized from the acquisitions amounted to $21.6 million, reflecting expected synergies and an assembled workforce[34] - The company expects to finalize the valuations of acquired assets within one year from the acquisition dates[33] - The weighted average estimated useful life of reacquired rights from the acquisitions is 6.1 years[35] Lease and Debt Management - Total lease assets increased to $622.1 million as of September 28, 2025, compared to $530.4 million as of December 29, 2024[52] - Total lease liabilities increased to $731.2 million as of September 28, 2025, from $614.0 million as of December 29, 2024[52] - Operating lease expense for the thirteen weeks ended September 28, 2025, was $21.9 million, up from $18.3 million for the same period in 2024[54] - The company entered into two variable-to-fixed interest rate swaps with an aggregate notional amount of $90.0 million, paying a fixed rate of 4.16% and maturing on October 6, 2026[48] - An additional two variable-to-fixed interest rate swaps were entered into with a notional amount of $60.0 million, paying a fixed rate of 4.42% and maturing on June 30, 2027[49] Tax and Market Risks - The effective income tax rate for the thirteen weeks ended September 28, 2025, was 47.3%, an increase from 39.6% in the prior year[66] - The company has established a valuation allowance for deferred tax assets deemed not realizable as of September 28, 2025[71] - The company does not anticipate any material changes to its exposure to market risks as disclosed in the 2024 Form 10-K[169] Shareholder Information - The weighted average number of common shares outstanding was 61,027,278 for the thirteen weeks ended September 28, 2025, compared to 60,428,016 in the same period of 2024[13] - The company granted a total of 1,028,509 restricted stock units during the thirty-nine weeks ended September 28, 2025[62]

Revenue Growth - Total revenues increased by 25.6% to $316.0 million compared to $251.6 million in Q3 2024[6] - System-wide sales increased by 20.9% to $352.7 million compared to $291.8 million in Q3 2024[6] - Total revenues for the thirty-nine weeks ended September 28, 2025, reached $906,149,000, up from $752,619,000 in 2024, reflecting a growth of 20.4%[36] Same-Restaurant Performance - Same-restaurant sales growth was 7.1%, with same-restaurant traffic growth of 2.6%[6] - Restaurant sales for the thirteen weeks ended September 28, 2025, were $313,636,000, compared to $248,965,000 in 2024, representing a 26.0% increase[37] Profitability Metrics - Net income rose to $3.0 million, or $0.05 per diluted share, compared to $2.1 million, or $0.03 per diluted share in Q3 2024[6] - Adjusted EBITDA increased to $34.1 million from $25.6 million in the same period of 2024[6] - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $34,099,000, compared to $25,624,000 in 2024, marking a 33.2% increase[25] - Restaurant level operating profit for the thirty-nine weeks ended September 28, 2025, was $164,573,000, up from $152,799,000 in 2024, indicating a growth of 7.7%[33] - Restaurant-level operating profit margin improved to 19.7% from 18.9% in the same period of 2024[6] - Adjusted EBITDA margin for the thirteen weeks ended September 28, 2025, was 10.8%, compared to 10.2% in 2024, showing an improvement of 0.6 percentage points[25] - The company reported a net income margin of 0.9% for the thirteen weeks ended September 28, 2025, compared to 0.8% in 2024, reflecting a slight improvement[36] Expenses and Costs - General and administrative expenses for the thirteen weeks ended September 28, 2025, totaled $33,746,000, compared to $27,680,000 in 2024, an increase of 22.0%[37] - The company incurred transaction expenses of $428,000 for the thirteen weeks ended September 28, 2025, compared to $375,000 in 2024, an increase of 14.1%[37] Expansion Plans - The company opened 21 new system-wide restaurants in 14 states, bringing the total to 620 restaurants across 32 states[6] - The company plans to open 60 to 61 new system-wide restaurants in FY25, net of closures[11] - Capital expenditures are projected to be approximately $150.0 million, primarily for new restaurant projects and remodels[11] Guidance - The updated guidance for FY25 includes an adjusted EBITDA of approximately $123 million[3][7] Income from Operations - Income from operations margin for the thirty-nine weeks ended September 28, 2025, was 2.1%, down from 4.7% in 2024, indicating a decline of 2.6 percentage points[33]

Core Insights - First Watch Restaurant Group reported a same-restaurant sales growth of 7.1% and total revenues increased by 25.6% to $316.0 million for Q3 2025 compared to $251.6 million in the same period of 2024 [1][7] - The company opened 21 new system-wide restaurants across 14 states, bringing the total to 620 restaurants [1][7] - Net income for the quarter was $3.0 million, or $0.05 per diluted share, compared to $2.1 million, or $0.03 per diluted share, in Q3 2024 [1][7] Financial Performance - Adjusted EBITDA for Q3 2025 was $34.1 million, up from $25.6 million in Q3 2024 [1][7] - System-wide sales increased by 20.9% to $352.7 million compared to $291.8 million in the same period of 2024 [7] - Restaurant-level operating profit margin improved to 19.7% from 18.9% in the same period of 2024 [7] Operational Highlights - Same-restaurant traffic growth was recorded at 2.6% [7] - The company plans to guide to the high end of its previous range for FY25 adjusted EBITDA at approximately $123 million [3][6] - Capital expenditures for the fiscal year are projected to be around $150 million, primarily for new restaurant projects and remodels [8] Future Outlook - The company anticipates opening 60 to 61 new system-wide restaurants in FY25, net of closures [8] - The updated guidance for total revenue growth is approximately 20.0%-21.0% for FY25 [8] - The company remains confident in achieving a robust finish to the year with continued aggressive growth [3]

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Group 1 - First Watch Restaurant Group, Inc. (FWRG) shares have increased by 13.1% over the past four weeks, closing at $17.69, with a mean price target of $22.18 indicating a potential upside of 25.4% [1] - The average of 11 short-term price targets ranges from a low of $17.00 to a high of $25.00, with a standard deviation of $2.18, suggesting variability in analyst estimates [2] - Analysts show a consensus that FWRG will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for FWRG's current year earnings has increased by 18% over the last 30 days, with no negative revisions [12] - FWRG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can provide a directional guide for price movement [14]

Core Insights - First Watch Restaurant Group, Inc. plans to release its third quarter 2025 financial results on November 4, 2025, before the market opens [1] - A conference call and webcast will follow the earnings release at 8:00 AM ET, hosted by the CEO and CFO [2] Company Overview - First Watch is a leading Daytime Dining concept specializing in made-to-order breakfast, brunch, and lunch using fresh ingredients [3] - The company operates over 600 restaurants across 32 states and has received numerous awards, including 2025's 1 Best Breakfast by Newsweek's Readers' Choice Awards [3] - First Watch has raised over $1.7 million for community causes through its initiative of donating a portion of every kid's meal served [3]

Core Insights - First Watch Restaurant Group has opened its first location in North Las Vegas, marking its entry into the Nevada market [1][12][13] - The restaurant emphasizes a chef-driven, made-to-order menu featuring breakfast, brunch, and lunch options, with a focus on fresh ingredients and seasonal specialties [2][8] Company Overview - First Watch is recognized for its modern take on breakfast and brunch classics, with a menu that includes items like Lemon Ricotta Pancakes and Million Dollar Bacon [2][8] - The company operates over 600 restaurants across 32 states, adhering to a "Follow the Sun" culinary philosophy that rotates its menu five times a year [8][9] Menu and Offerings - The restaurant's menu features a variety of dishes made without heat lamps, microwaves, or deep fryers, ensuring freshness [2] - Seasonal menus are introduced five times a year, with the first seasonal menu for the Craig Road location set to launch this winter [3] Community Engagement - The grand opening event includes local community highlights such as performances by the Las Vegas Academy of the Arts Jazz Band and the Vegas Golden Knights Vivas cheerleaders [6] - First Watch is committed to social responsibility, sourcing its Project Sunrise coffee from women coffee farmers in South America and donating a portion of kids' meal sales to community causes, raising over $1.7 million to date [4][8] Restaurant Features - The new location spans 4,400 square feet, accommodating over 200 customers with a modern dining room and a covered patio [5] - The restaurant operates daily from 7 a.m. to 2:30 p.m., offering dine-in, pickup, and delivery services [7]

First Watch Restaurant Group (NasdaqGS:FWRG) FY Conference Summary Company Overview - **Company**: First Watch Restaurant Group - **Industry**: Restaurant and Food Distribution - **Date of Conference**: September 10, 2025 Key Points Business Performance - **Q2 Performance**: Positive momentum with sequential improvement across all business aspects, addressing previous headwinds related to third-party delivery and Florida market stabilization [4][5] - **In-Restaurant Traffic**: Slightly negative but improving sequentially; historical performance has been generally positive [6] Marketing and Brand Awareness - **Marketing Strategy**: Transitioning to a more sophisticated marketing approach, leveraging data and insights to target consumers effectively [7][8] - **Brand Awareness**: Currently tracking brand awareness and its correlation with traffic; unit growth is believed to contribute to increased brand awareness [10] Menu and Beverage Innovation - **Beverage Sales**: Coffee is the top-selling item; ongoing innovation in beverages, including fresh juices and alcohol offerings [14][15] - **Consumer Trends**: The company is well-positioned to cater to the "sober curiosity" trend, focusing on health-oriented beverage options [17][18] Digital Transformation - **App Relaunch**: Recently relaunched the customer-facing app, receiving positive feedback with a 4.9-star rating; features include waitlist management and nutritional information [19][20] Development and Expansion - **New Restaurant Performance**: New restaurants are exceeding performance expectations, with a target of $2.7 million in average unit volume (AUV) by year three [21][24] - **Site Selection**: Focus on high-quality locations (A sites) has improved performance; adapting to second-generation spaces has become more common [26][30] Competitive Landscape - **Market Share**: First Watch continues to gain market share in the daytime dining category, with a focus on operational excellence and customer experience [33][34] - **Consumer Demographics**: The brand is attracting a younger demographic (Gen Z and Millennials) through menu evolution and brand presentation [36][37] Consumer Behavior and Industry Trends - **Breakfast Market**: While breakfast is seen as a discretionary occasion, First Watch maintains a focus on everyday value and hospitality, which is resonating with consumers [39][41] Management Development - **Certified General Manager Program**: Launched to promote internal talent and reduce turnover, essential for supporting the rapid expansion of new restaurants [44] Additional Insights - **Operational Efficiency**: Emphasis on reducing friction in customer experience and enhancing operational throughput through digital tools [20] - **Real Estate Trends**: Observing an increase in second-generation space opportunities due to shifts in the commercial real estate market [31] This summary encapsulates the key insights and developments discussed during the conference, highlighting First Watch's strategic initiatives and market positioning within the restaurant industry.