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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.
First Watch
First Watch
First Watch Revenue by Segment
Revenue by Segment
Restaurant Sales Revenue
CapyFin.comFranchise Revenues Revenue
CapyFin.com 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.
- Labor and occupancy costs continue to pose challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income