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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.
First Watch
First Watch
First Watch Revenue by Segment
Revenue by Segment
Restaurant Sales Revenue
CapyFin.comFranchise Revenues Revenue
CapyFin.com 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