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Mar 27, 2022
First Watch Q1 2022 Earnings Report
First Watch reported strong financial results driven by same-restaurant sales and traffic growth, and exceeded expectations despite a challenging operating environment.
Key Takeaways
First Watch Restaurant Group, Inc. reported a 36.1% increase in total revenues to $173.1 million, driven by a 27.2% increase in same-restaurant sales growth and a 21.9% increase in same-restaurant traffic growth. The company's net income was $4.6 million, or $0.08 per diluted share, compared to a net loss of $(2.0) million, or $(0.05) per diluted share in the same quarter of the previous year.
Total revenues increased by 36.1% to $173.1 million compared to Q1 2021.
Same-restaurant sales growth was 27.2%, driven by a 21.9% increase in same-restaurant traffic.
Income from operations margin increased to 4.5% compared to 3.1% in Q1 2021.
Net income was $4.6 million, or $0.08 per diluted share, compared to a net loss of $(2.0) million, or $(0.05) per diluted share in Q1 2021.
Revenue by Segment
Forward Guidance
The Company reiterated its fiscal year 2022 guidance and provided an outlook for its 2022 blended tax rate.
Positive Outlook
- Same-restaurant sales growth in the high-single digits with continued positive traffic
- Total revenue growth in excess of 15.0% relative to 2021
- Adjusted EBITDA in the range of $67.0 million to $71.0 million
- 30 to 35 new company-owned restaurants and 8 to 13 new franchise-owned restaurants
Challenges Ahead
- Blended tax rate of 33.0% to 34.0%
- Capital expenditures in the range of $60.0 million to $70.0 million invested primarily in new restaurant projects, planned remodels and new in-restaurant technology
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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