First Watch Q1 2023 Earnings Report
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
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