First Watch Q4 Earnings Miss Estimates, Revenues Rise Y/Y

Core Insights - First Watch Restaurant Group, Inc. (FWRG) reported mixed results for the fourth quarter of fiscal 2024, with earnings missing expectations while revenues exceeded them [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for Q4 were 1 cent, missing the Zacks Consensus Estimate of 2 cents, and down from 4 cents in the prior-year quarter [2] - Quarterly revenues reached $263.3 million, beating the consensus mark by 0.4% and increasing by 7.6% year-over-year, driven by new restaurant openings and menu price increases [3] - Same-restaurant sales declined by 0.3%, and same-restaurant traffic decreased by 3% [3] - General and administrative expenses rose to $30.7 million from $30 million in the prior-year quarter [4] - Restaurant-level operating profit was $49 million, up from $46.8 million in the prior-year quarter, with a margin of 18.8%, down from 19.4% [4] - Net income for the quarter was $0.7 million, down from $2.6 million in the prior-year quarter, with a net income margin decline of 80 basis points to 0.3% [5] - Adjusted EBITDA for Q4 was $24.3 million, slightly down from $24.6 million in the prior-year quarter, with a margin decline of 90 basis points to 9.2% [5] Fiscal Year Highlights - Total revenues for fiscal 2024 were $1.02 billion, up from $891.6 million in fiscal 2023 [6] - Adjusted EBITDA for fiscal 2024 totaled $113.8 million, compared to $99.5 million in fiscal 2023 [6] - Diluted EPS for fiscal 2024 was 30 cents, down from 41 cents in the previous year [6] Future Outlook - For fiscal 2025, the company anticipates low single-digit growth in same-restaurant sales, with total revenues projected to increase by approximately 20% [7] - Adjusted EBITDA is expected to range between $124 million and $130 million [7] - Expansion plans include opening 59 to 64 new system-wide restaurants, with capital expenditures estimated between $150 million and $160 million [8] - The company reaffirms long-term financial targets, including low double-digit percentage unit growth and approximately 3.5% same-restaurant sales growth [9]