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Dec 25, 2022
First Watch Q4 2022 Earnings Report
Reported strong financial results with revenue increase and positive same-restaurant sales growth.
Key Takeaways
First Watch Restaurant Group reported a 14.2% increase in total revenues to $185.7 million and a 7.7% growth in same-restaurant sales. The company's net loss improved to $(0.5) million. They opened 16 system-wide restaurants during the quarter.
Total revenues increased by 14.2% to $185.7 million.
System-wide sales increased by 15.6% to $234.2 million.
Same-restaurant sales grew by 7.7%.
Net loss improved to $(0.5) million.
Forward Guidance
For fiscal year 2023, First Watch expects same-restaurant sales growth of 6.0% to 8.0% and total revenue growth of 15.0% to 19.0%.
Positive Outlook
- Same-restaurant sales growth of 6.0% to 8.0% with continued positive same-restaurant traffic growth
- Total revenue growth of 15.0% to 19.0%
- Adjusted EBITDA in the range of $76.0 million to $81.0 million
- 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)
- Capital expenditures in the range of $100.0 million to $110.0 million invested primarily in new restaurant projects and planned remodels
Challenges Ahead
- Uncertainty regarding ongoing hostility between Russia and Ukraine and the related impact on macroeconomic conditions, including inflation, as a result of such conflict or other related events
- Vulnerability to changes in economic conditions and consumer preferences
- Inability to successfully open new restaurants or establish new markets
Historical Earnings Impact
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Avg. Return Before/After Earnings
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