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Sep 29, 2024
First Watch Q3 2024 Earnings Report
First Watch's Q3 2024 performance reflected strong restaurant-level operations amidst an uneven consumer backdrop.
Key Takeaways
First Watch reported a 14.8% increase in total revenues, reaching $251.6 million. Net income was $2.1 million, with Adjusted EBITDA growing 18% to $25.6 million. The company opened 9 new system-wide restaurants.
Total revenues increased by 14.8% to $251.6 million compared to Q3 2023.
System-wide sales increased by 8.0% to $291.8 million compared to Q3 2023.
Net income decreased to $2.1 million, or $0.03 per diluted share, compared to $5.4 million, or $0.09 per diluted share, in Q3 2023.
Adjusted EBITDA increased to $25.6 million compared to $21.6 million in Q3 2023.
Revenue by Segment
Forward Guidance
The Company updated the following guidance metrics for the 52-week fiscal year ending December 29, 2024:
Positive Outlook
- Total revenue growth in the range of 16.5% to 17.0%
- Adjusted EBITDA in the range of $110.0 million to $112.0 million
- Total new system-wide restaurant openings anticipated to be 47, net of 2 company-owned restaurant closures (43 new company-owned restaurants and 6 new franchise-owned restaurants), which reflects the effect of five new restaurant openings delayed by Hurricane Milton and rescheduled to early 2025.
- Blended tax rate of around 33.0%
- Capital expenditures of around $130.0 million invested primarily in new restaurant projects and planned remodels
Challenges Ahead
- Same-restaurant sales growth of around negative 1.0%
- Same restaurant traffic growth of negative 4.0%-4.5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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