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Mar 26, 2023
First Watch Q1 2023 Earnings Report
Reported strong Q1 2023 financial results, driven by same-restaurant sales and traffic growth, along with increased operating profit margin and net income.
Key Takeaways
First Watch Restaurant Group reported a strong first quarter in 2023, with significant increases in total revenues, system-wide sales, and same-restaurant sales growth. The company's income from operations margin and restaurant level operating profit margin also increased, leading to a rise in net income and adjusted EBITDA. They also raised the 2023 Adjusted EBITDA guidance.
Total revenues increased by 22.1% to $211.4 million compared to Q1 2022.
Same-restaurant sales grew by 12.9% driven by same-restaurant traffic growth of 5.1%.
Net income increased to $9.4 million, or $0.15 per diluted share, compared to $4.6 million, or $0.08 per diluted share, in Q1 2022.
Adjusted EBITDA increased to $27.4 million from $19.4 million in Q1 2022.
First Watch
First Watch
First Watch Revenue by Segment
Revenue by Segment
Restaurant Sales Revenue
CapyFin.comFranchise Revenues Revenue
CapyFin.com Forward Guidance
The Company raises certain of its guidance for the 53-week fiscal year ended December 31, 2023:
Positive Outlook
- Total revenue growth in the range of 16.0% to 20.0%
- Adjusted EBITDA in the range of $80.0 million to $85.0 million
- Same-restaurant sales growth in the range of 6.0% to 8.0%
- Positive same-restaurant traffic growth
- Total of 45-51 new system-wide restaurants
Challenges Ahead
- Includes approximately 1.0% in total revenue growth associated with May 2023 franchise acquisition
- Includes approximately $1.0 million in Adjusted EBITDA associated with May 2023 franchise acquisition
- Updated blended tax rate in the range of 33.0% to 36.0%
- Net of 3 company-owned restaurant closures
- Capital expenditures in the range of $100.0 million to $110.0 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income