BRADENTON, Fla., Jan. 05, 2026 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (Nasdaq: FWRG) (“First Watch” or the “Company”), 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 host a fireside chat at the 28th Annual ICR Conference on Monday, January 12, 2026 at 11:00 a.m. Eastern Time. The fireside chat will be available at https://investors.firstwatch.com in ...

First Watch Restaurant Group Conference Summary Company Overview - **Company**: First Watch Restaurant Group (NasdaqGS:FWRG) - **Industry**: Restaurant - **Business Model**: Focuses on breakfast, brunch, and lunch with an elevated offering, operating from 7:00 A.M. to 2:00 P.M. [7][8] Key Highlights - **Growth**: - Increased from approximately 428 restaurants at IPO in 2021 to over 620 restaurants by 2025, achieving about 10% annual growth in restaurant count [7][8] - Adjusted EBITDA has doubled since going public [7] - Personal sales volumes up nearly 50% since 2019, significantly outperforming average casual dining concepts [9][12] - **Operational Efficiency**: - Emphasis on data-driven operations led by the COO, focusing on efficiency and accountability [12][13] - Site selection for new restaurants is informed by data on successful locations, leading to predictable performance [13][14] - **Market Positioning**: - Positioned as a national brand, attracting commercial developers due to vibrant morning foot traffic [14][15] - Marketing initiatives have been piloted and expanded, resulting in improved brand awareness and performance in targeted markets [21] Financial Performance - **Same Restaurant Sales**: Continued positive same restaurant sales growth, with Q3 comps up 7%, exceeding expectations [20] - **Menu Pricing Strategy**: - Average check around $17, with pricing strategy focused on defending margins rather than offsetting all inflation [27][28] - Less pricing taken compared to peers, with a focus on value and customer experience [27][28] - **Food Cost Inflation**: - Food cost inflation projected at around 6% for the year, influenced by commodity prices such as bacon and coffee [30][32] - Potential for slight deflation in 2026, with ongoing discussions with suppliers [34] - **Wage Growth**: - Wage inflation around 4% in 2025, with expectations for stabilization in the future [38][39] - Focus on efficient labor management and leveraging data to optimize staffing [40] Unit Growth and Investment - **Unit Growth Target**: Aiming for over 10% annual growth, with new units opening above existing average unit volumes (AUVs) [42] - **Cash-on-Cash Return**: Targeting around 35% cash-on-cash return, with a structured approach to restaurant construction and investment [46][48] - **Free Cash Flow Outlook**: Operating cash flow is designed to cover new restaurant construction and fleet investments, with a goal to maintain restaurant appearance and appeal [49] Additional Insights - **Customer Experience Enhancements**: Investments made in guest experience, including increased portion sizes and reintroduction of complimentary coffee for waiting guests [23][24] - **Long-term Strategy**: Focus on long-term customer relationships rather than short-term financial targets, emphasizing the "You First" culture [26] This summary encapsulates the key points discussed during the First Watch Restaurant Group conference, highlighting the company's growth, operational strategies, financial performance, and future outlook.

First Watch Restaurant Group (NasdaqGS:FWRG) FY 2025 Conference December 02, 2025 12:00 PM ET Company ParticipantsMel Hope - CFOConference Call ParticipantsJeff Bernstein - Equity Research AnalystNone - AnalystJeff BernsteinGood afternoon, everyone. My name is Jeff Bernstein, and I'm the restaurant and food service distribution analyst here at Barclays. Hope everyone's staying dry today. Our next presenting company is First Watch. With us on stage from Bradenton, Florida, we have Mel Hope, their CFO. By way ...

Financial Data and Key Metrics Changes - The company has doubled its adjusted EBITDA since going public four years ago, growing from approximately 428 restaurants to nearly 620 [15] - The annual unit growth rate is currently over 10%, with a long-term goal of reaching 2,000 system-wide units in the U.S. [2][15] Business Line Data and Key Metrics Changes - The sales mix is approximately 45% weekday and 55% weekend, with weekends being critical for revenue generation [11] - The company has seen a recovery in traffic, nearly returning to flat levels by the end of the quarter, driven by improvements in both dining room and third-party delivery sales [33][34] Market Data and Key Metrics Changes - The company typically over-indexes to higher-income customers, with no significant performance differences across various demographic cohorts [7] - The competitive landscape is fragmented, with many local and regional players, but the company believes its scale and value proposition provide a competitive advantage [29][30] Company Strategy and Development Direction - The company is focused on new restaurant growth as a key driver of its business, celebrating each new opening as vital for brand expansion and employee development [20][21] - The strategy includes acquiring franchise restaurants to enhance market presence and operational control, with 72 franchise units remaining [80][81] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about sustaining the current unit growth rate, citing a robust pipeline and data-driven site selection process [52][53] - The company is well-positioned to meet evolving consumer preferences, particularly with health-conscious menu options [18][19] Other Important Information - The average cost to build a new restaurant is approximately $1.75 million, with expected first-year sales of about $2.2 million [58] - Marketing efforts are becoming more efficient as the company leverages data to enhance brand recognition and customer engagement [66] Q&A Session Summary Question: Will the company look to capital markets for fundraising as it grows? - The company plans to rely on cash generated from operating restaurants to fund new openings, with borrowing primarily for strategic acquisitions [77][78] Question: What is the strategy behind franchise acquisitions? - The company prefers ownership of profitable franchise restaurants to accelerate growth in attractive markets, while still recognizing the potential for future franchising opportunities [80][81] Question: How does the company view its competitive landscape? - The company sees a fragmented competitive environment with many local players, but believes its scale and consistent value proposition provide a significant advantage [29][30]

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]

Core Viewpoint - Denny's is being acquired by a group of investors for $620 million, taking the breakfast chain private, with a unanimous board approval [1][2]. Group 1: Acquisition Details - Denny's shareholders will receive $6.25 per share in cash, totaling $322 million, which represents a 52% premium over the closing stock price on the day of the announcement [2]. - The acquisition is led by TriArtisan Capital Advisors, Treville Capital, and Yadav Enterprises, one of Denny's largest franchisees [1][5]. - Denny's shares surged by 47% in after-hours trading following the announcement [2]. Group 2: Company Background - Denny's was founded in 1953 and has undergone several name changes, with its current branding established in 1959 [2]. - The company began trading on the New York Stock Exchange in 1969 [2]. Group 3: Recent Challenges - Denny's experienced a significant decline in sales during the COVID pandemic and has been adapting to changing customer dining preferences, including a shift towards delivery services [3]. - The company has faced competition from newer chains offering healthier breakfast options [3]. - In response to performance issues, Denny's announced plans to close 150 of its lowest-performing locations [4]. Group 4: Future Outlook - Denny's CEO indicated that the board considered multiple offers and believes the acquisition is in the best interest of shareholders [5]. - The deal is expected to close in the first quarter of 2026, pending shareholder approval [6].

Core Insights - Happy Belly Food Group Inc. has signed a new franchise agreement for Yolks Breakfast in Edmonton, marking a significant step in its Western Canada growth strategy [1][4] - The breakfast segment in the restaurant industry is experiencing rapid growth, and Happy Belly aims to capitalize on this trend through its asset-light franchising model [4][6] - The company has secured 626 retail locations across Canada, indicating a strong pipeline for expansion and a commitment to becoming a leading restaurant consolidator in the country [6] Company Strategy - The franchise agreement in Edmonton is part of Yolks' strategy to expand its breakfast, brunch, and lunch offerings in dynamic urban markets [1][4] - Happy Belly prioritizes smart real estate selection to enhance return on invested capital (ROIC) and streamline buildouts, which is crucial for efficient scaling [4][6] - The company emphasizes operational discipline and brand scalability to deliver long-term shareholder value [6] Market Position - The breakfast segment is highlighted as one of the most vibrant and fast-growing areas in the restaurant industry, presenting a significant opportunity for growth [4] - Happy Belly's focus on high-traffic real estate and experienced partners is driving its consistent pipeline growth [6] - The company aims to enhance its market presence through strategic site selection and franchise agreements, with a goal of becoming Canada's leading restaurant consolidator [6]

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Core Insights - Fast food chains, particularly Wendy's and McDonald's, are experiencing a decline in their breakfast business as consumers cut back on spending [2][3] - Executives from both companies noted that breakfast is the weakest meal period, with consumers opting to eat at home during times of financial uncertainty [2][3] Company Performance - Wendy's interim CEO indicated that increased consumer uncertainty leads to reduced breakfast purchases, as this meal is often the first to be skipped [2] - McDonald's CEO confirmed that breakfast is the weakest daypart, with some customers not visiting for that meal [2] - McDonald's reported a slowdown in U.S. outlet growth to 2.5% in the spring quarter, attributed to continued pressure on lower-income consumers [3] Consumer Behavior - Despite a cautious consumer mood, U.S. households are showing resilience in spending, particularly in essentials and packaged goods [4] - Back-to-school spending has been a standout category, while travel and luxury spending face challenges [4] - A report indicated that nearly one-third of consumers delayed or canceled discretionary purchases in June due to financial pressures [5] Financial Sentiment - The financial security of consumers significantly impacts their spending behavior, with 31% of financially secure consumers maintaining their purchasing frequency despite price increases, compared to only 13% of paycheck-to-paycheck consumers [6]

Core Insights - Wendy's plans to reduce the number of promotions for the remainder of the year after experiencing challenges with too many initiatives during the summer [1][2] - The company reported earnings per share of $0.29, a 7.4% increase year-on-year, and revenue of $560.9 million, a 1.7% decrease, both exceeding analysts' expectations [3] - Foot traffic to Wendy's locations decreased by 3% compared to the same quarter last year, although this was an improvement from a 4.7% decline in Q1 [8] Promotions and Strategy - The interim CEO highlighted that the summer promotions, while appealing, overwhelmed restaurant teams and confused customers [2] - Future focus will be on chicken innovation and a new beverage lineup, including a collaboration with Netflix for the second season of "Wednesday" [3] Technology and Innovation - Wendy's is expanding its use of voice AI for drive-thru orders, aiming to implement this technology in up to 600 restaurants by the end of 2025 [9] - The company has been testing innovative drive-thru solutions, including food delivery robots in underground tunnels [9] Market Reaction - Following the earnings report, Wendy's shares increased by approximately 1.5% [4]