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First Watch Q1 2025 Earnings Report
First Watch Restaurant Group, Inc. reported its financial results for the first quarter of fiscal year 2025, showing an increase in total revenues and a net loss.
Key Takeaways
First Watch Restaurant Group, Inc. reported total revenues of $282.2 million for Q1 2025, a 16.4% increase from the prior year. The company experienced a net loss of $(0.8) million, or $(0.01) per diluted share, and an Adjusted EBITDA of $22.8 million. Same-restaurant sales growth was 0.7%, with 13 new system-wide restaurants opened.
Total revenues increased by 16.4% to $282.2 million in Q1 2025.
The company reported a net loss of $(0.8) million for Q1 2025, compared to a net income of $7.2 million in Q1 2024.
Adjusted EBITDA for Q1 2025 was $22.8 million, a decrease from $28.6 million in Q1 2024.
First Watch opened 13 new system-wide restaurants across 10 states, bringing the total to 584 system-wide restaurants.
First Watch
First Watch
First Watch Revenue by Segment
Revenue by Segment
Restaurant Sales Revenue
CapyFin.comFranchise Revenues Revenue
CapyFin.com Forward Guidance
First Watch updated its fiscal year 2025 guidance, expecting total revenue growth of approximately 20.0% and Adjusted EBITDA in the range of $114.0 million to $119.0 million. The company plans to open 59 to 64 new system-wide restaurants.
Positive Outlook
- Total revenue growth of ~20.0% expected.
- Adjusted EBITDA projected between $114.0 million and $119.0 million.
- Positive low-single digits same-restaurant sales growth anticipated.
- Flat-to-slightly positive same-restaurant traffic growth expected.
- Plans to open 59 to 64 new system-wide restaurants, net of 3 company-owned restaurant closures.
Challenges Ahead
- Blended tax rate expected to be 45.0%-50.0%.
- Capital expenditures in the range of $150.0 million to $160.0 million.
- Guidance for Adjusted EBITDA is not reconciled to GAAP financial measures due to inability to determine probable significance of reconciling items.
- Capital outlays associated with the acquisition of franchise-owned restaurants are not included in capital expenditure guidance.
- Uncertainty present in the coming macroeconomic environment.