Financial Data and Key Metrics Changes - Total revenue for Q4 2024 reached $263.3 million, marking a 16.8% increase compared to the previous year, excluding the impact of the 53rd week in 2023 [29] - Adjusted EBITDA surpassed $24.3 million, an increase of nearly $5 million from $19.6 million in the previous year, with an adjusted EBITDA margin of 9.2% compared to 8.7% in Q4 2023 [34] - Net income was $700,000, resulting in a net income margin of 0.3% [35] Business Line Data and Key Metrics Changes - The company opened 50 new restaurants in 2024, including 25 in Q4 alone, contributing to a total of 572 restaurants by the end of the quarter [11][35] - Same restaurant sales experienced a slight decline of 0.3%, with a same restaurant traffic decline of 3% [29] Market Data and Key Metrics Changes - In-restaurant dining traffic outperformed off-premise traffic in Q4, with improvements noted in the third-party delivery sales channel due to recent changes implemented at the start of 2025 [30][19] - The average new restaurant opened in 2024 is projected to generate third-year sales of $2.6 million, approximately 20% above the current system average unit volumes [12] Company Strategy and Development Direction - The company aims to reach 2,200 locations in the Continental US, emphasizing a disciplined approach to pricing based on long-term inflation trends rather than short-term commodity spikes [12][24] - A significant increase in marketing spend is planned for 2025, focusing on targeted marketing efforts to raise brand awareness and attract new customers [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth prospects, despite facing challenges such as commodity inflation and a competitive market environment [39][46] - The company anticipates positive same restaurant sales growth in low single digits for 2025, with total revenue growth expected to be around 20% [40] Other Important Information - Commodity inflation is expected to remain in the high single digits, driven by increases in key ingredients such as eggs, pork, coffee, and avocados [42] - The company plans to invest $150 million to $160 million in capital expenditures, excluding franchise acquisitions [43] Q&A Session Summary Question: Concerns about slowing macroeconomic conditions affecting traffic - Management noted that Q4 traffic was better than Q3, and Q1 to date traffic is better than Q4, indicating a positive trend [50] Question: Details on marketing spend and its impact - Management is excited about the results from marketing campaigns tested in 2024 and has incorporated successful strategies into the 2025 plan, which includes a significant increase in marketing spend [54] Question: Specifics on egg commodity inflation - Eggs and potatoes account for about 15% of the market basket, with current egg costs affected by the need to supplement supply due to diminished flocks [58][60] Question: Approach to value and customer recognition - Management emphasized the importance of communicating everyday value without deep discounts, which has resonated well with consumers based on testing results [70][72] Question: Traffic growth drivers - Management expects marketing efforts to drive both frequency of visits from existing customers and attract new guests [93] Question: Geographic performance and customer data usage - Management confirmed that customer data can be leveraged without a loyalty program, focusing on effective communication and engagement strategies [98]

Restaurant Operations and Growth - As of December 29, 2024, the company operated a total of 572 restaurants across 29 states, with 489 being company-owned and 83 franchise-owned[15]. - In 2024, the company opened 50 new system-wide restaurants across 19 states, continuing its growth strategy targeting low double-digit annual percentage growth[20]. - The company acquired 22 operating restaurants from franchisees in 2024 and has agreements to acquire an additional 19 restaurants[22]. - The company has a robust growth plan with over 100 new restaurants in the development pipeline, necessitating a strong talent bench for general managers[45]. - As of December 29, 2024, the company had 11 franchisees operating 83 restaurants, with franchisees obligated to develop 29 new restaurants[36]. - The total number of franchise-owned restaurants is 83, which represents approximately 14.5% of the total restaurant count[195]. - The company has no company-owned restaurants in states like Arkansas, Louisiana, and Utah, indicating potential areas for expansion[195]. - The company may consider further market expansion in states with fewer locations to enhance its footprint[195]. Financial Performance and Projections - The average unit volume per restaurant is projected to be $2.2 million in 2024, operating only 7.5 hours per day[14]. - Same-restaurant sales growth is critical for profitability, and the company may not achieve expected growth rates in future periods[82]. - The profitability of new restaurants is uncertain, with initial operating profit margins typically lower during the first 12 months of operation[88]. - The company recorded a charge of $0.8 million for estimated probable losses related to unclaimed gift card balances in Q4 2023[122]. - A payment of $0.7 million was made to the State of Delaware to resolve escheat matters concerning unclaimed gift card balances[122]. - The principal amount of the company's term loans outstanding was $193.8 million as of December 29, 2024, which could significantly affect its business and financial condition[163]. - The company does not anticipate paying any dividends on its common stock in the foreseeable future, as it intends to use cash flow for business growth[181]. - The company may require additional capital for growth, which may not be available on favorable terms, impacting expansion opportunities[187]. Customer Engagement and Marketing - The company has gathered customer information for over 17.9 million unique customer profiles, with 7.7 million opting for direct communication[28]. - The alcohol menu is offered in about 90% of system-wide restaurants as of December 29, 2024, reflecting the company's culinary innovation[28]. - Significant investments are being made in digital marketing initiatives to enhance customer awareness and loyalty across multiple digital channels[110]. - The company heavily relies on social media for marketing, necessitating continuous innovation to maintain customer engagement and brand relevance[110]. Employee and Workplace Culture - The company employs over 15,000 restaurant employees, with no employees part of a collective bargaining agreement[29]. - More than 85% of the 510 employees promoted to general manager at corporate-owned restaurants since 2022 were promoted from within[44]. - The "You First" Emergency Assistance Fund has provided over $1 million in tax-free hardship grants to employees since its inception[41]. - The company operates on a "No Nights Ever" model, allowing employees to enjoy evenings with family, contributing to improved work-life balance[39]. - Maintaining corporate culture is critical for the company's success, and failure to do so could adversely impact operations and employee retention[131]. - The restaurant industry is experiencing aggressive competition for talent, leading to wage inflation and pressure to improve employee benefits[130]. Supply Chain and Cost Management - The company is experiencing significant increases in food costs, particularly for eggs, coffee, and avocados, due to supply chain disruptions and climate impacts[85]. - There is a reliance on a small number of suppliers for a substantial amount of food and coffee, increasing vulnerability to supply chain disruptions[70]. - The company faced supply chain disruptions in January 2024 due to a strike at its broad-line distributor, leading to increased costs and delays in food deliveries[104]. - The company sources nearly all pork from two suppliers, eggs from one supplier, and coffee from one supplier, creating potential risks for supply shortages[105]. Regulatory and Compliance Risks - The company faces risks related to compliance with nutritional disclosure laws, which could be costly and time-consuming[72]. - The company is subject to evolving privacy laws, including the California Consumer Privacy Act, which may increase compliance costs and legal liabilities[117]. - The company is subject to extensive federal, state, and local laws and regulations, which could adversely affect its results of operations if not complied with[152]. - Legal and regulatory risks related to employment and labor laws could result in substantial damages or settlement costs[135]. Financial and Market Risks - The company may face adverse impacts from economic downturns, geopolitical tensions, and inflation affecting consumer discretionary spending[70]. - Increased labor and healthcare costs due to regulatory changes could adversely affect financial performance[72]. - The company faces risks related to "dram shop" statutes, which could result in significant judgments and settlements that may not be covered by insurance[151]. - The market price of the common stock could decline significantly due to substantial sales by Advent, affecting capital raising efforts[184]. - The company's quarterly results may fluctuate significantly due to seasonality, potentially impacting stock price and investor expectations[182]. Cybersecurity and Technology - The company maintains a cybersecurity program and conducts annual risk assessments, but any breaches could have a material adverse effect on operations[192]. - The rapid evolution of artificial intelligence technologies may impact customer expectations and increase cybersecurity risks[112]. - The company faces risks related to cybersecurity, with potential interruptions in operations due to system failures or breaches, which could materially affect financial results[111]. Franchise Operations and Challenges - The company has limited control over franchisee operations, which could result in inconsistencies in service and quality, impacting brand reputation[101]. - As of December 29, 2024, 15% of system-wide restaurants were franchised, indicating a reliance on franchisee performance for overall financial health[100]. - The company’s restaurants are geographically concentrated in the southeast U.S., which may pose challenges when entering new markets[76]. Strategic and Competitive Positioning - The restaurant industry is highly competitive, with the company positioned to compete effectively due to its focus on quality breakfast, brunch, and lunch experiences[52]. - Competition in the restaurant industry is intense, with many competitors having greater financial and marketing resources, which could adversely affect customer traffic and sales[92]. - The company emphasizes high food quality and safety, with regular inspections and a commitment to operational excellence[27].

Financial Results Announcement - First Watch Restaurant Group, Inc. announced preliminary operational results for Q4 and fiscal year ended December 29, 2024[4] - The press release detailing the financial results was issued on January 13, 2025[4] Company Classification - The company is classified as an emerging growth company under the Securities Exchange Act[3]

Core Insights - First Watch Restaurant Group achieved significant financial milestones in 2024, surpassing $1 billion in total revenues and $100 million in adjusted EBITDA for the first time [2][7] Q4 2024 Highlights - Total revenues increased by 7.6% to $263.3 million in Q4 2024 from $244.6 million in Q4 2023 [8] - System-wide sales rose by 2.6% to $304.1 million in Q4 2024 from $296.5 million in Q4 2023 [8] - Same-restaurant sales growth was negative 0.3%, with same-restaurant traffic growth at negative 3.0% [8] - Income from operations decreased to $3.9 million in Q4 2024 from $6.9 million in Q4 2023, with an income from operations margin of 1.5% [8] - Net income for Q4 2024 was $0.7 million compared to $2.6 million in Q4 2023 [8] Fiscal Year 2024 Highlights - Total revenues for the fiscal year 2024 increased by 13.9% to $1.0 billion from $891.6 million in 2023 [8] - System-wide sales increased to $1.2 billion from $1.1 billion in 2023 [8] - Same-restaurant sales growth was negative 0.5%, with same-restaurant traffic growth at negative 4.0% [8] - Net income decreased to $18.9 million from $25.4 million in 2023 [8] - Adjusted EBITDA increased to $113.8 million from $99.5 million in 2023 [8] Outlook for Fiscal Year 2025 - The company projects total revenues of $1.0 billion, representing a 13.9% increase, and system-wide sales of $1.2 billion, up 7.4% [7] - Expected net income is $18.9 million with adjusted EBITDA of $113.8 million [7] - Plans to open 50 system-wide restaurants across 19 states [7] Operational Metrics - Restaurant level operating profit increased to $201.8 million in 2024 from $175.7 million in 2023, with a restaurant level operating profit margin of 20.1% [8] - The company opened 50 system-wide restaurants in 2024, resulting in a total of 572 restaurants across 29 states [8]

Core Insights - First Watch Restaurant Group, Inc. (FWRG) is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year decline of 50% [1] - Revenue projections stand at $262.18 million, indicating a 7.2% increase from the same quarter last year [1] Earnings Projections - Analysts have not revised the consensus EPS estimate for the quarter in the past 30 days, suggesting stability in expectations [1] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] Revenue Breakdown - Franchise revenues are estimated at $2.76 million, representing a decline of 23.1% year-over-year [4] - Restaurant sales are projected to be $259.43 million, indicating a year-over-year increase of 7.6% [4] Key Metrics - Same-restaurant sales growth is forecasted at -0.5%, a significant drop from the 5% reported in the same quarter last year [5] - The total number of system-wide restaurants is expected to reach 572, up from 524 in the same quarter last year [5] - Franchise-owned restaurants are projected to total 83, down from 99 year-over-year [5] - Company-owned restaurants are estimated at 488, compared to 425 in the same quarter last year [6] Stock Performance - FWRG shares have decreased by 10.3% over the past month, contrasting with the Zacks S&P 500 composite's decline of 4.1% [6] - The company holds a Zacks Rank of 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]

Company Announcement - First Watch Restaurant Group, Inc. plans to release its fourth quarter and fiscal year 2024 financial results on March 11, 2025, before the market opens [1] - A conference call and webcast will follow the financial results announcement at 8:00 AM ET, hosted by the CEO and CFO [2] Company Overview - First Watch is recognized as the 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 chef-driven menu that rotates five times a year [3]

Company Overview - First Watch (NASDAQ: FWRG) is described as a unique fast-growing restaurant chain in the U.S., specifically in the family dining segment [1]. Analyst Background - The analysis is conducted by an equity analyst and accountant with a specialization in restaurant stocks, holding an MBA in Forensic Accounting and Controllership [1]. - The analyst leads Goulart's Restaurant Stocks, focusing on various segments of the restaurant industry, including QSR, fast casual, casual dining, fine dining, and family dining [1]. Analytical Approach - The company employs advanced analytical models and specialized valuation techniques to provide detailed insights and actionable strategies for investors [1]. - The analyst also engages in academic and journalistic initiatives, contributing to institutions that promote economic freedom and financial education [1]. Market Engagement - The analyst has experience in accounting and business consulting across LATAM, serving as an independent accountant and consultant [1].

First Watch Restaurant Group, Inc. (FWRG) reported fourth-quarter and fiscal 2024 preliminary results. Following the preliminary results, the company’s shares declined 2% yesterday.First Watch CEO and president Chris Tomasso said that the company met its fourth-quarter goal of opening 25 new restaurants, including 23 company-owned locations. He also noted that same-restaurant sales and traffic growth for the quarter were at the high end of expectations. Looking ahead to 2025, Tomasso emphasized the company' ...

Core Insights - First Watch Restaurant Group reported preliminary operational metrics for the fourth quarter and fiscal year ended December 29, 2024, highlighting a focus on growth in the Daytime Dining sector [1][2]. Sales and Traffic Highlights - Same-restaurant sales growth for the fourth quarter was -0.3%, while for the entire fiscal year it was -0.5% [3]. - Same-restaurant traffic growth was recorded at -3.0% for the fourth quarter and -4.0% for the fiscal year [3]. Restaurant Development - In the fourth quarter of 2024, First Watch opened 25 new restaurants, including 23 company-owned and 2 franchise-owned [4]. - For the entire year of 2024, the company opened 50 new restaurants (43 company-owned and 7 franchise-owned) and closed 2 [4]. - As of December 29, 2024, First Watch operated 572 system-wide restaurants, comprising 489 company-owned and 83 franchise-owned across 29 states [5]. Upcoming Events - The CEO and CFO will participate in a fireside chat at the 27th Annual ICR Conference on January 14, 2025 [6]. - The leadership team will also meet with institutional investors at the Jefferies Summit on January 28, 2025 [7]. Company Overview - First Watch is recognized as a leading Daytime Dining concept, serving made-to-order breakfast, brunch, and lunch with a focus on fresh ingredients [11]. - The company has received numerous accolades, including being named the 1 Most Loved Workplace in America for 2024 by Newsweek [11].

BRADENTON, Fla., Jan. 07, 2025 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. ("First Watch" or the "Company") (NASDAQ:FWRG), the leading Daytime Dining concept serving breakfast, brunch and lunch, today announced that Chris Tomasso, Chief Executive Officer and President, and Mel Hope, Chief Financial Officer, will participate in two upcoming conferences: The Company will host a fireside chat at the 27th Annual ICR Conference on Jan. 14, 2025 at 10:00 AM ET. The fireside chat will be available at ht ...