Overview

* First Watch Q2 revenue rises 19.1% to $307.9 mln, beating expectations

* Adjusted EBITDA decreases to $30.4 mln but beats analyst estimates

* Company opens 17 new restaurants, raises 2025 adjusted EBITDA guidance

Outlook

* Company raises 2025 adjusted EBITDA guidance to $119 mln-$123 mln

* First Watch expects 2025 revenue growth of ~20%

* Company plans 59-64 new restaurants in 2025, net of closures

* First Watch sees positive low-single digit same-restaurant sales growth

Result Drivers

* RESTAURANT OPENINGS - 17 new system-wide restaurants opened in 8 states contributed to revenue growth

* SAME-RESTAURANT SALES - Positive same-restaurant sales growth of 3.5% helped drive overall revenue increase

* TRAFFIC GROWTH - Same-restaurant traffic growth of 2.0% supported revenue performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $307.89 $306.60

Revenue mln mln (10

Analysts

)

Q2 EPS $0.03

Q2 Net $2.11

Income mln

Q2 Beat $30.38 $30.30

Adjusted mln mln (10

EBITDA Analysts

)

Q2 9.9%

Adjusted

EBITDA

Margin

Q2 $25.72

EBITDA mln

Q2 $7.31

Income mln

from

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for First Watch Restaurant Group Inc ( FWRG ) is $22.00, about 21.6% above its August 4 closing price of $17.24

* The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 46 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)