Financial Performance - Total revenues for the thirteen weeks ended March 30, 2025, were $282.24 million, an increase of 16.5% compared to $242.45 million for the same period in 2024[13] - Restaurant sales reached $279.59 million, up from $239.31 million, reflecting a growth of 16.8% year-over-year[13] - Net loss for the period was $829,000, compared to a net income of $7.21 million in the prior year, indicating a significant decline in profitability[13] - The company reported a comprehensive loss of $1.49 million for the quarter, compared to a comprehensive income of $8.14 million in the prior year[13] - The net cash provided by operating activities was $20.14 million, a decrease from $24.98 million in the same period last year[18] - The effective income tax rate for the thirteen weeks ended March 30, 2025, was 46.1%, significantly higher than the 28.0% for the same period in 2024[62] - Stock-based compensation expense for the thirteen weeks ended March 30, 2025, was $2.3 million, compared to $1.9 million for the same period in 2024[60] Assets and Liabilities - Total assets increased to $1.54 billion as of March 30, 2025, compared to $1.51 billion at the end of December 2024, representing a growth of 2.5%[11] - Total liabilities rose to $947.85 million, up from $918.97 million, marking an increase of 3.2%[11] - Cash and cash equivalents decreased to $18.61 million from $33.31 million, a decline of 44.6%[11] - The total accounts receivable decreased to $5.96 million from $7.24 million at the end of the previous year[34] - As of March 30, 2025, the total net long-term debt was $191.5 million, an increase from $189.0 million as of December 29, 2024[36] - The estimated fair value of the outstanding debt as of March 30, 2025, was $201.8 million, compared to $198.3 million as of December 29, 2024[41] Capital Expenditures and Investments - Capital expenditures for the period were $36.56 million, compared to $28.58 million in the prior year, indicating an increase of 28%[18] - The Company drew $7.0 million and $20.5 million from the Delayed Draw Term Facility on April 11 and April 25, 2025, respectively, to fund acquisitions[40] - The company acquired 16 restaurants for approximately $49.0 million and three restaurants for approximately $7.0 million in April 2025[71] Operational Metrics - The company operated 498 company-owned restaurants and 86 franchise-owned restaurants as of March 30, 2025[24] - In-restaurant dining sales reached $226.73 million, a rise of 16.2% compared to $195.20 million in the prior year[33] - The total lease expense for the thirteen weeks ended March 30, 2025, was $25.1 million, compared to $20.4 million for the same period in 2024[50] Debt and Interest Management - Cash paid for interest was $3.07 million, up from $2.77 million in the previous year[20] - The Company has a $100.0 million Term Facility, a $125.0 million Revolving Credit Facility, and a $125.0 million Delayed Draw Term Facility under its Credit Facility[37] - The Company utilized interest rate swaps with an aggregate notional amount of $150.0 million to hedge cash flows of variable rate debt[45][46] - The company entered into variable-to-fixed interest rate swap agreements to hedge $150.0 million of outstanding variable rate debt, with fixed rates of 4.16% and 4.42%[154] Shareholder Information - The weighted average number of common shares outstanding increased to 60.77 million from 60.01 million, reflecting a rise of 1.3%[13] - The weighted average common shares outstanding for basic net loss per share was 60,767,401 for the thirteen weeks ended March 30, 2025[70] Compliance and Valuation - The Company was in compliance with all covenants under the credit agreement as of March 30, 2025[43] - The company has established a valuation allowance on deferred tax assets deemed not realizable as of March 30, 2025, due to insufficient earnings history[64] - The company continues to assess the need for a valuation allowance for deferred tax assets, which may change with future taxable earnings[65] - Unrecognized stock-based compensation expense as of March 30, 2025, included $19,000 for stock options and $18.634 million for restricted stock units[61] Deferred Revenue - Deferred gift card revenue at the end of the period was $3.15 million, down from $5.39 million at the beginning of the period[33]

[Financial & Operational Highlights](index=1&type=section&id=Highlights) In Q1 2025, First Watch achieved a 16.4% increase in total revenues to $282.2 million, though profitability declined with a net loss of $(0.8) million and Adjusted EBITDA decreasing to $22.8 million Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $282.2M | $242.4M | +16.4% | | System-wide Sales | $323.0M | $289.6M | +11.5% | | Same-Restaurant Sales Growth | 0.7% | N/A | - | | Same-Restaurant Traffic Growth | -0.7% | N/A | - | | Income from Operations Margin | 0.4% | 5.1% | -4.7 p.p. | | Restaurant Level Operating Profit Margin* | 16.5% | 20.8% | -4.3 p.p. | | Net (Loss) Income | $(0.8)M | $7.2M | -111.1% | | Diluted EPS | $(0.01) | $0.12 | -108.3% | | Adjusted EBITDA* | $22.8M | $28.6M | -20.3% | - The company opened **13 new system-wide restaurants** and had **1 closure**, bringing the total to **584 restaurants** (**498 company-owned**, **86 franchise-owned**) across **30 states**[6](index=6&type=chunk) - CEO Chris Tomasso noted that Q1 same-restaurant traffic results were encouraging and continued positive trends from late 2024, with new restaurant openings in 2024 and 2025 exceeding expectations[3](index=3&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Updated%20Outlook%20Fiscal%20Year%202025) The company updated its full-year 2025 guidance, projecting total revenue growth of approximately 20% and an Adjusted EBITDA between $114.0 million and $119.0 million, alongside plans to open 59 to 64 new system-wide restaurants Updated Fiscal Year 2025 Guidance | Metric | Guidance Range/Value | | :--- | :--- | | Total Revenue Growth | ~20.0% (includes ~4% from acquisitions) | | Same-Restaurant Sales Growth | Positive low-single digits | | Same-Restaurant Traffic Growth | Flat-to-slightly positive | | Adjusted EBITDA | $114.0M - $119.0M | | New System-Wide Restaurants | 59 to 64 (net of 3 closures) | | Capital Expenditures | $150.0M - $160.0M | | Blended Tax Rate | 45.0% - 50.0% | [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed financial statements and non-GAAP reconciliations, highlighting a year-over-year revenue increase but a decline into a net loss due to rising operating costs, and a decrease in key non-GAAP metrics [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20%28LOSS%29) For Q1 2025, total revenues grew to $282.2 million, but significant increases in operating expenses, particularly food and beverage and labor costs, led to a net loss of $(0.8) million, a stark contrast to the prior-year's net income Consolidated Statement of Operations Highlights (in thousands) | Account | Q1 2025 (ended Mar 30) | Q1 2024 (ended Mar 31) | | :--- | :--- | :--- | | **Total Revenues** | **$282,240** | **$242,449** | | Food and beverage costs | $66,647 | $52,184 | | Labor and other related expenses | $96,754 | $79,735 | | Total operating costs and expenses | $281,127 | $230,163 | | **Income from operations** | **$1,113** | **$12,286** | | **Net (loss) income** | **$(829)** | **$7,214** | | Net (loss) income per share - diluted | $(0.01) | $0.12 | [Non-GAAP Financial Measures Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section details the reconciliation of GAAP measures to the company's preferred non-GAAP metrics, showing that Adjusted EBITDA for Q1 2025 was $22.8 million, down from $28.6 million, and Restaurant Level Operating Profit fell to $46.1 million from $49.9 million Reconciliation of Net (Loss) Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income | $(829) | $7,214 | | Depreciation and amortization | 16,557 | 12,271 | | Interest expense | 3,334 | 2,599 | | Income tax (benefit) expense | (708) | 2,799 | | Other adjustments (Stock-based comp, etc.) | 4,399 | 3,382 | | **Adjusted EBITDA** | **$22,753** | **$28,590** | | **Adjusted EBITDA margin** | **8.1%** | **11.8%** | Reconciliation of Income from Operations to Restaurant Level Operating Profit (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from operations | $1,113 | $12,286 | | Less: Franchise revenues | (2,649) | (3,141) | | Add: General and administrative expenses | 30,219 | 27,658 | | Add: Depreciation and amortization | 16,557 | 12,271 | | Add: Other adjustments | 882 | 788 | | **Restaurant level operating profit** | **$46,122** | **$49,862** | | **Restaurant level operating profit margin** | **16.5%** | **20.8%** | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides context for the financial report, including definitions of key operational and non-GAAP metrics, a standard forward-looking statements disclaimer outlining potential business risks, and a corporate overview describing First Watch's market position [Definitions of Key Metrics](index=3&type=section&id=Definitions) The report defines key terms for clarity, including 'Same-restaurant sales growth' for year-over-year sales changes and non-GAAP measures like 'Adjusted EBITDA' and 'Restaurant level operating profit' which exclude specific corporate-level expenses - **Same-restaurant sales growth:** Defined as the percentage change in year-over-year sales for company-owned restaurants open for **18 months or longer**, based on **383 restaurants** for Q1 2025[13](index=13&type=chunk) - **Adjusted EBITDA:** A non-GAAP measure defined as net income (loss) before depreciation and amortization, interest expense, income taxes, and other items not considered part of ongoing core operating performance[15](index=15&type=chunk) - **Restaurant level operating profit:** A non-GAAP measure defined as restaurant sales less direct restaurant operating expenses (e.g., food, labor, occupancy), excluding corporate-level expenses[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a legal safe harbor, cautioning that the report's projections are subject to significant risks and uncertainties, including changes in consumer preferences, economic conditions, and operational challenges - The press release contains forward-looking statements that are not guarantees of future performance and are subject to risks and uncertainties[20](index=20&type=chunk) - Important risk factors include: changes in consumer preferences and economic conditions (inflation, recession), challenges in opening new restaurants, supply chain disruptions, competition, and labor shortages[20](index=20&type=chunk) [About First Watch](index=3&type=section&id=About%20First%20Watch) First Watch is a leading 'Daytime Dining' restaurant concept focused on made-to-order breakfast, brunch, and lunch, operating over 580 restaurants in 31 states and recognized for its fresh ingredients and workplace culture - First Watch is positioned as the leading Daytime Dining concept serving made-to-order breakfast, brunch, and lunch with fresh ingredients[19](index=19&type=chunk) - The company operates more than **580 restaurants** in **31 states**[19](index=19&type=chunk) - Recent awards include being named **2024's 1 Most Loved Workplace® in America** by Newsweek and the **top restaurant brand in Yelp's 2023 list of most-loved brands**[19](index=19&type=chunk)

Financial Performance - Total revenues increased by 16.4% to $282.2 million in Q1 2025 from $242.4 million in Q1 2024 [7] - System-wide sales rose by 11.5% to $323.0 million in Q1 2025 from $289.6 million in Q1 2024 [7] - Net loss was $(0.8) million, or $(0.01) per diluted share, in Q1 2025 compared to net income of $7.2 million, or $0.12 per diluted share, in Q1 2024 [7][36] - Adjusted EBITDA decreased to $22.8 million in Q1 2025 from $28.6 million in Q1 2024 [7][30] Operational Highlights - Opened 13 new system-wide restaurants across 10 states, resulting in a total of 584 system-wide restaurants [7] - Same-restaurant sales growth was 0.7%, while same-restaurant traffic growth was negative 0.7% [7] - Income from operations margin decreased to 0.4% in Q1 2025 from 5.1% in Q1 2024 [7] Future Outlook - The company updated its guidance for the fiscal year 2025, projecting total revenue growth of approximately 20% [8] - Expected Adjusted EBITDA in the range of $114.0 million to $119.0 million for the fiscal year [8] - Plans to open 59 to 64 new system-wide restaurants, net of closures, with capital expenditures estimated between $150.0 million and $160.0 million [8]

Core Viewpoint - First Watch Restaurant Group, Inc. has completed the acquisition of 16 franchise-owned restaurants in North Carolina and South Carolina for $49 million, marking the second largest franchisee deal in its history and emphasizing its long-term growth strategy [1][2]. Acquisition Details - The acquisition includes 16 locations in the Charlotte and Concord DMAs in North Carolina, and the Columbia and Greenville DMAs in South Carolina [2]. - This deal is part of First Watch's strategy to solidify corporate ownership along the East Coast and to provide additional territories for organic growth [2]. - Since May 2023, First Watch has acquired a total of 64 franchised restaurants across eight acquisitions [3]. Company Overview - First Watch is recognized for its Daytime Dining concept, serving made-to-order breakfast, brunch, and lunch with fresh ingredients [4]. - The company operates over 570 restaurants across 30 states and has received numerous accolades, including being named the 1 Most Loved Workplace in America for 2024 [4].

Core Insights - First Watch Restaurant Group, Inc. is expanding its presence in New England with the opening of its first downtown Boston location at 777 Boylston St. in late 2025, following its earlier entry into Massachusetts with a location in Hanover [1][8] - The new restaurant will feature a chef-driven menu that emphasizes fresh, high-quality ingredients and a commitment to socially responsible sourcing, including coffee from women-owned farms [2][3] - The Boston location will create approximately 30 new jobs and uphold a "No Night Shifts Ever" policy to prioritize employee wellbeing [5] Company Overview - First Watch is recognized as a leading daytime dining concept, serving made-to-order breakfast, brunch, and lunch with a rotating seasonal menu [7] - The company has received numerous accolades, including being named the "1 Most Loved Workplace in America" by Newsweek and the Best Practice Institute [7] - First Watch operates over 570 restaurants across 30 states, showcasing a diverse menu that includes breakfast classics and innovative dishes [7]

Core Insights - First Watch Restaurant Group, Inc. plans to release its first quarter 2025 financial results on May 6, 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 has received numerous accolades, including being named 2024's 1 Most Loved Workplace in America and the top restaurant brand in Yelp's inaugural list of the top 50 most-loved brands in the U.S. [3] - First Watch operates over 570 restaurants across 30 states, with a menu that rotates five times a year [3]

First Watch Restaurant Group, Inc. (FWRG) acquired three franchise-owned restaurants in Missouri, along with the development rights for the area. The move is expected to support the company’s growth strategy through increased control over operations and future expansion.The company will share more details about the transaction when it announces results for the fiscal first quarter ended March 30, 2025.FWRG Bolsters Portfolio With Latest AcquisitionsThe company added Lee’s Summit, West Columbia and South Col ...

Latest Franchisee Deal Underscores Long-term Growth StrategyBRADENTON, Fla., April 14, 2025 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (together with its subsidiaries “First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today announced the acquisition of three of its franchise-owned restaurants and corresponding development rights in Missouri. "We’re proud to welcome the Lee’s Summit, West Columbia and South Columbia restaurant t ...

Core Viewpoint - First Watch Restaurant Group is positioned as a small-cap growth stock with potential to triple in size over the next decade, focusing on high-quality breakfast offerings and a diverse menu [1] Group 1: Stock Performance and Valuation - The stock price is currently $18.42, with a 12-month price target of $22.45, indicating a potential upside of 21.90% [4] - Valuation concerns have impacted stock performance, with growth slowing from high 20% to mid-teens CAGR, but expected to stabilize for at least a decade [3] - Analysts have rated the stock positively, with 90% rating it as Buy or higher, and only one Hold [4] Group 2: Growth Prospects - The company is forecasted to achieve a 20% total revenue growth for the year, with a solid 16% revenue gain expected in Q1 F2025 [7] - First Watch plans to increase its store count by over 10% in 2025, building on a 9.6% increase in F2024 [8] - The balance sheet shows reduced cash but improved total assets and equity, with low leverage at 0.31X equity, supporting growth plans [9] Group 3: Market Sentiment and Trends - Institutional ownership is high at about 96%, with increased buying activity and a rising short interest, indicating potential for a short squeeze [6] - Recent upgrades and positive analyst sentiment suggest a favorable outlook for the stock, with a consensus forecasting a 25% upside [5] - The stock has shown resilience, rebounding after a market pullback and confirming support at the $16 level [10]

Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Company Analysis - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]