First Watch Q2 revenue rises 19.1%, beats expectations

First Watch Restaurant

05/08/2025 12:27

Overview

First Watch Q2 revenue rises 19.1% to $307.9 mln, beating expectations

Adjusted EBITDA decreases to $30.4 mln but beats analyst estimates

Company opens 17 new restaurants, raises 2025 adjusted EBITDA guidance

Outlook

Company raises 2025 adjusted EBITDA guidance to $119 mln-$123 mln

First Watch expects 2025 revenue growth of ~20%

Company plans 59-64 new restaurants in 2025, net of closures

First Watch sees positive low-single digit same-restaurant sales growth

Result Drivers

RESTAURANT OPENINGS - 17 new system-wide restaurants opened in 8 states contributed to revenue growth

SAME-RESTAURANT SALES - Positive same-restaurant sales growth of 3.5% helped drive overall revenue increase

TRAFFIC GROWTH - Same-restaurant traffic growth of 2.0% supported revenue performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$307.89 mln
$306.60 mln (10 Analysts)
Q2 EPS
$0.03
Q2 Net Income
$2.11 mln
Q2 Adjusted EBITDA
Beat
$30.38 mln
$30.30 mln (10 Analysts)
Q2 Adjusted EBITDA Margin
9.9%
Q2 EBITDA
$25.72 mln
Q2 Income from Operations
$7.31 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for First Watch Restaurant Group Inc is $22.00, about 21.6% above its August 4 closing price of $17.24

The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 46 three months ago

Press Release: ID:nGNX6Hgh66

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)