Overview
First Watch Q3 revenue grows 25.6% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 beats consensus, reflecting strong operational performance
Company opened 21 new restaurants in 14 states, expanding its footprint
Outlook
First Watch expects FY25 adjusted EBITDA of ~$123 mln
Company forecasts FY25 same-restaurant sales growth of ~4%, total rev growth of 20-21%
First Watch plans 60 to 61 new restaurants in FY25
Result Drivers
REVENUE GROWTH - Total revenues increased 25.6% to $316.0 mln, driven by new restaurant openings and same-restaurant sales growth
SAME-RESTAURANT SALES - Same-restaurant sales grew 7.1%, supported by a 2.6% increase in same-restaurant traffic
NEW RESTAURANTS - Opened 21 new system-wide restaurants in 14 states, contributing to revenue growth
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$316.02 mln
$308.20 mln (10 Analysts)
Q3 Net Income
$2.99 mln
Q3 Adjusted EBITDA
Beat
$34.09 mln
$32.20 mln (10 Analysts)
Q3 Adjusted EBITDA Margin
10.80%
Q3 EBITDA
$29.90 mln
Q3 Income from Operations
$10.05 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 28% above its November 3 closing price of $15.85
The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 66 three months ago
Press Release: ID:nGNX8pCFpV
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(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.)