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Dec 31, 2023
First Watch Q4 2023 Earnings Report
Reported strong financial results with revenue increase and positive same-restaurant sales growth.
Key Takeaways
First Watch Restaurant Group reported a strong Q4 2023 with a 31.7% increase in total revenues to $244.6 million and a 5.0% increase in same-restaurant sales growth. Net income was $2.6 million, a significant improvement compared to the net loss of $(0.5) million in Q4 2022. The company opened 19 system-wide restaurants during the quarter.
Total revenues increased by 31.7% to $244.6 million.
System-wide sales increased by 26.6% to $296.5 million.
Same-restaurant sales growth was 5.0%.
Net income reached $2.6 million, compared to a net loss of $(0.5) million in the previous year.
First Watch
First Watch
First Watch Revenue by Segment
Forward Guidance
The Company provides the following outlook for the 52-week fiscal year ended December 29, 2024:
Positive Outlook
- Same-restaurant sales growth of 1.0% to 3.0% with flat-to-negative same-restaurant traffic growth
- Total revenue growth in the range of 18.0% to 20.0%
- Adjusted EBITDA in the range of $106.0 million to $112.0 million
- Total of 51 to 57 new system-wide restaurants, net of 1 company-owned restaurant closure (43 to 47 new company-owned restaurants and 9 to 11 new franchise-owned restaurants)
- The Company reiterates its long-term annual financial targets as follows: Percentage unit growth in the low double digits, Same-restaurant sales growth of ~3.5%, Restaurant sales growth in the mid-teens, Adjusted EBITDA percentage growth in the mid-teens
Revenue & Expenses
Visualization of income flow from segment revenue to net income