Overview

* First Watch Q3 revenue grows 25.6% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 beats consensus, reflecting strong operational performance

* Company opened 21 new restaurants in 14 states, expanding its footprint

Outlook

* First Watch expects FY25 adjusted EBITDA of ~$123 mln

* Company forecasts FY25 same-restaurant sales growth of ~4%, total rev growth of 20-21%

* First Watch plans 60 to 61 new restaurants in FY25

Result Drivers

* REVENUE GROWTH - Total revenues increased 25.6% to $316.0 mln, driven by new restaurant openings and same-restaurant sales growth

* SAME-RESTAURANT SALES - Same-restaurant sales grew 7.1%, supported by a 2.6% increase in same-restaurant traffic

* NEW RESTAURANTS - Opened 21 new system-wide restaurants in 14 states, contributing to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $316.02 $308.20

Revenue mln mln (10

Analysts

)

Q3 Net $2.99

Income mln

Q3 Beat $34.09 $32.20

Adjusted mln mln (10

EBITDA Analysts

)

Q3 10.80%

Adjusted

EBITDA

Margin

Q3 $29.90

EBITDA mln

Q3 $10.05

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 28% above its November 3 closing price of $15.85

* The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 66 three months ago

Press Release:

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(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.)