First Watch Restaurant Group, Inc. Reports Q3 2024 Financial Results

Core Insights - First Watch Restaurant Group, Inc. reported a total revenue increase of 14.8% to $251.6 million for Q3 2024 compared to $219.2 million in Q3 2023 [3] - The company opened 9 new system-wide restaurants across 8 states, bringing the total to 547 restaurants [3][6] - Adjusted EBITDA grew by 18% to $25.6 million in Q3 2024 from $21.6 million in Q3 2023 [3][6] Financial Performance - Net income decreased to $2.1 million, or $0.03 per diluted share, down from $5.4 million, or $0.09 per diluted share, in Q3 2023 [3][24] - System-wide sales increased by 8.0% to $291.8 million in Q3 2024 from $270.3 million in Q3 2023 [3] - Same-restaurant sales growth was negative 1.9%, with same-restaurant traffic growth at negative 4.4% [3] Operational Highlights - The income from operations margin decreased to 2.5% in Q3 2024 from 3.6% in Q3 2023, while the restaurant level operating profit margin increased to 18.9% from 18.7% [3][24] - The company experienced no check management in Q3 2024, although planned marketing campaigns had a minor impact on net per person average [3] - All company-owned restaurants were fully operational shortly after Hurricane Milton, with no expected material impact on same-restaurant sales for Q4 [3][6] Updated Outlook - For the fiscal year ending December 29, 2024, the company anticipates same-restaurant sales growth of around negative 1.0% and total revenue growth in the range of 16.5% to 17.0% [6] - Adjusted EBITDA is projected to be between $110.0 million and $112.0 million, with 47 new system-wide restaurant openings expected [6][7] - Capital expenditures are estimated at around $130.0 million, primarily for new restaurant projects and remodels [6]