First Watch Q2 revenue rises 19.1%, beats expectations
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
