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Jun 25, 2023
First Watch Q2 2023 Earnings Report
Reported strong financial results driven by same-restaurant sales growth and effective cost management.
Key Takeaways
First Watch Restaurant Group reported a strong Q2 2023 with a 17.3% increase in total revenues and a significant rise in net income. Same-restaurant sales grew by 7.8%, contributing to an income from operations margin of 5.3% and a restaurant level operating profit margin of 20.9%. The company also opened 9 new system-wide restaurants and raised its 2023 Adjusted EBITDA guidance.
Total revenues increased by 17.3% to $216.3 million compared to Q2 2022.
Same-restaurant sales grew by 7.8% driven by positive traffic growth.
Net income increased to $8.0 million, or $0.13 per diluted share, from $2.7 million, or $0.05 per diluted share, in Q2 2022.
Adjusted EBITDA increased to $25.8 million from $17.8 million in the prior year.
Forward Guidance
The Company updates certain of its guidance for the 53-week fiscal year ended December 31, 2023:
Positive Outlook
- Total revenue growth in the range of 18.0% to 21.0%
- Adjusted EBITDA in the range of $89.0 million to $92.0 million
- Blended tax rate in the range of 28.0% to 31.0%
- Same-restaurant sales growth in the range of 6.0% to 8.0% with marginally positive same-restaurant traffic growth
- Total of 45-51 new system-wide restaurants, net of 3 company-owned restaurant closures (38 to 42 new company-owned restaurants and 10 to 12 new franchise-owned restaurants)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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