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Sep 26, 2021
First Watch Q3 2021 Earnings Report
Reported strong financial results driven by robust same-restaurant sales and traffic growth.
Key Takeaways
First Watch Restaurant Group reported a significant increase in total revenues, same-restaurant sales growth, and restaurant level operating profit margin for the third quarter ended September 26, 2021. The company's net income and Adjusted EBITDA also showed substantial improvement compared to the same period in 2020.
Total revenues increased by 57.8% to $157.4 million.
Same-restaurant sales grew by 46.2% with traffic growth of 40.1%.
Restaurant level operating profit margin increased to 19.5%.
Net income was $0.8 million, or $0.02 per diluted share, compared to a net loss of $11.1 million, or $(0.25) per diluted share in 2020.
Forward Guidance
The Company expects the following for the fourth quarter of fiscal year ending December 26, 2021:
Positive Outlook
- Same-restaurant sales growth in the range of 31.5% to 33.5%
- Adjusted EBITDA in the range of $10.2 million to $11.2 million
- New restaurant openings to include 7 company-owned restaurants and 2 franchise-owned restaurants
- Unit growth in the low double digits
- Restaurant sales growth in the mid-teens
Challenges Ahead
- Associated with the debt refinancing on October 6, 2021, we will recognize a non-cash charge of $2.4 million on the existing debt
- We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items.
- We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period.
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