Financial Performance - First Watch Restaurant Group, Inc. reported revenue of $316.35 million for the quarter ended December 2025, reflecting a year-over-year increase of 20.2% [1] - The earnings per share (EPS) for the same period was $0.24, compared to $0.01 a year ago, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $315.11 million, resulting in a surprise of +0.39% [1] - The company delivered an EPS surprise of +209.68%, with the consensus EPS estimate being $0.08 [1] Key Metrics - Same-restaurant sales growth was reported at 3.1%, matching the average estimate based on three analysts [4] - The total number of system-wide restaurants was 633, consistent with the three-analyst average estimate [4] - Franchise-owned restaurants totaled 73, aligning with the average estimate from two analysts [4] - Company-owned restaurants numbered 560, also matching the two-analyst average estimate [4] - Franchise revenues were reported at $2.39 million, slightly below the estimated $2.42 million, representing a year-over-year decline of -10.4% [4] - Restaurant sales revenues reached $313.96 million, surpassing the three-analyst average estimate of $312.15 million, with a year-over-year change of +20.5% [4] Stock Performance - Shares of First Watch Restaurant Group have returned -4.1% over the past month, compared to a -1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported cash of $12 million at the end of the quarter and debt of $3.9 million, with an extended credit agreement providing $20 million of capacity [5] - An additional impairment of $4.7 million was recorded for Sequoia's leasehold improvements and right of use assets due to cash flow analysis [6] Business Line Data and Key Metrics Changes - Individual restaurants are performing well, particularly in Las Vegas and New York, with cash flow remaining strong despite a slowdown in visitors to the Las Vegas Strip [8] - Sequoia and Bryant Park are underperforming due to external factors, with Sequoia facing a decline in event business and Bryant Park involved in litigation [10][11] Market Data and Key Metrics Changes - The overall demand in various operational areas is down, with reports indicating a 15% to 20% decline in Florida, although this figure may be exaggerated [9] Company Strategy and Development Direction - The company is focused on maintaining operations at Bryant Park despite ongoing litigation and believes in the justification of their claims [11] - There is optimism regarding the potential for a casino license in the Meadowlands, contingent on developments in New York State's casino licensing [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging environment but believes the company is performing well under the circumstances [9] - The company is positioned to capitalize on potential gaming opportunities in New Jersey as the legislative landscape evolves [12] Other Important Information - The company has extended the payment terms on balloon notes, with two set to run off in four to five quarters and another balloon payment due in June 2028 [6] Q&A Session Summary Question: Are there any questions from participants? - There were no questions from participants during the Q&A session [15]