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Dec 29, 2024
First Watch Q4 2024 Earnings Report
First Watch reported revenue growth but a decline in profitability in Q4 2024.
Key Takeaways
First Watch Restaurant Group reported Q4 2024 revenue of $263.3 million, up 7.6% year-over-year. However, same-restaurant sales declined by 0.3%, and same-restaurant traffic dropped by 3.0%. Net income fell to $0.7 million from $2.6 million in Q4 2023. Adjusted EBITDA decreased slightly to $24.3 million from $24.6 million in the prior-year quarter.
Revenue increased 7.6% year-over-year to $263.3 million.
Same-restaurant sales declined by 0.3%, while traffic fell by 3.0%.
Net income dropped to $0.7 million from $2.6 million in Q4 2023.
Adjusted EBITDA decreased to $24.3 million from $24.6 million in Q4 2023.
Revenue by Segment
Forward Guidance
First Watch expects moderate revenue growth in FY 2025, driven by new restaurant openings and operational efficiencies.
Positive Outlook
- Revenue projected to grow by approximately 20%.
- Same-restaurant sales expected to return to low-single-digit growth.
- Adjusted EBITDA forecasted between $124 million and $130 million.
- Plan to open 55 to 58 new company-owned restaurants in FY 2025.
- Continued investment in new restaurant projects and remodels.
Challenges Ahead
- Same-restaurant traffic growth expected to remain flat or slightly positive.
- Franchise revenue declined in Q4 2024 and may remain under pressure.
- Operating margin declined, reflecting higher costs.
- Macroeconomic uncertainty may impact consumer spending.
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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