First Watch Restaurant Group, Inc. Reports Q3 2024 Financial Results
First Watch Restaurant Group (FWRG) reported Q3 2024 financial results showing a 14.8% increase in total revenues to $251.6 million. The company experienced mixed performance with system-wide sales growing 8.0% to $291.8 million, while same-restaurant sales declined 1.9% and traffic decreased 4.4%. Net income fell to $2.1 million ($0.03 per diluted share) from $5.4 million in Q3 2023, though Adjusted EBITDA grew 18% to $25.6 million. The company opened 9 new system-wide restaurants across 8 states, reaching 547 total locations. Updated guidance for fiscal 2024 projects total revenue growth of 16.5-17.0% and 47 new system-wide restaurant openings.
First Watch Restaurant Group (FWRG) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando un aumento del 14,8% nei ricavi totali, raggiungendo i 251,6 milioni di dollari. L'azienda ha registrato una performance mista, con le vendite a livello di sistema che sono cresciute dell'8,0% a 291,8 milioni di dollari, mentre le vendite nei ristoranti omogenei sono diminuite dell'1,9% e il traffico è calato del 4,4%. Il reddito netto è sceso a 2,1 milioni di dollari (0,03 dollari per azione diluita) rispetto ai 5,4 milioni di dollari del terzo trimestre 2023, sebbene l'EBITDA Adjusted sia cresciuto del 18% a 25,6 milioni di dollari. L'azienda ha aperto 9 nuovi ristoranti a livello di sistema in 8 stati, raggiungendo un totale di 547 sedi. La guida aggiornata per l'anno fiscale 2024 prevede una crescita dei ricavi totali del 16,5-17,0% e 47 nuove aperture di ristoranti a livello di sistema.
First Watch Restaurant Group (FWRG) informó sobre los resultados financieros del tercer trimestre de 2024, mostrando un aumento del 14.8% en los ingresos totales, alcanzando 251.6 millones de dólares. La compañía experimentó un desempeño mixto, con ventas a nivel de sistema creciendo un 8.0% hasta 291.8 millones de dólares, mientras que las ventas en restaurantes comparables disminuyeron un 1.9% y el tráfico cayó un 4.4%. La ganancia neta se redujo a 2.1 millones de dólares (0.03 dólares por acción diluida) desde 5.4 millones de dólares en el tercer trimestre de 2023, aunque el EBITDA Ajustado creció un 18% hasta 25.6 millones de dólares. La empresa abrió 9 nuevos restaurantes a nivel de sistema en 8 estados, alcanzando un total de 547 ubicaciones. La guía actualizada para el año fiscal 2024 proyecta un crecimiento de ingresos totales del 16.5-17.0% y 47 nuevas aperturas de restaurantes a nivel de sistema.
퍼스트 와치 레스토랑 그룹(FWRG)가 2024년 3분기 재무 결과를 발표하며 총 수익이 14.8% 증가하여 2억 5,160만 달러에 달했다고 밝혔습니다. 회사는 시스템 전체 매출이 8.0% 증가하여 2억 9,180만 달러에 이르렀지만, 동일 매장 매출이 1.9% 감소하고 방문객 수가 4.4% 감소하는 혼합 성과를 경험했습니다. 순이익은 2023년 3분기 540만 달러에서 210만 달러(희석 주당 0.03달러)로 감소했지만, 조정된 EBITDA는 18% 증가하여 2,560만 달러에 달했습니다. 이 회사는 8개 주에서 시스템 전체로 9개의 새로운 레스토랑을 열어 총 547개 지점에 이르렀습니다. 2024 회계연도에 대한 업데이트된 가이드는 총 수익 성장을 16.5-17.0%로 예상하며 시스템 전체로 47개의 새로운 레스토랑 개장을 계획하고 있습니다.
First Watch Restaurant Group (FWRG) a publié les résultats financiers du troisième trimestre 2024, montrant une augmentation de 14,8% des revenus totaux, atteignant 251,6 millions de dollars. L'entreprise a connu des performances mitigées, avec des ventes à l'échelle du système en hausse de 8,0% à 291,8 millions de dollars, tandis que les ventes dans les restaurants comparables ont diminué de 1,9% et le trafic a baissé de 4,4%. Le bénéfice net a chuté à 2,1 millions de dollars (0,03 dollar par action diluée) contre 5,4 millions de dollars au troisième trimestre 2023, bien que l'EBITDA Ajusté ait augmenté de 18% pour atteindre 25,6 millions de dollars. L'entreprise a ouvert 9 nouveaux restaurants à l'échelle du système dans 8 états, atteignant un total de 547 emplacements. Les prévisions mises à jour pour l'exercice 2024 projettent une croissance des revenus totaux de 16,5 à 17,0% et 47 nouvelles ouvertures de restaurants à échelle du système.
First Watch Restaurant Group (FWRG) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und einen Anstieg der Gesamterlöse um 14,8% auf 251,6 Millionen Dollar gemeldet. Das Unternehmen verzeichnete eine gemischte Performance, wobei die systemweiten Verkäufe um 8,0% auf 291,8 Millionen Dollar stiegen, während die Verkäufe in vergleichbaren Restaurants um 1,9% zurückgingen und der Verkehr um 4,4% fiel. Der Nettogewinn sank auf 2,1 Millionen Dollar (0,03 Dollar pro verwässerter Aktie) von 5,4 Millionen Dollar im dritten Quartal 2023, obwohl das bereinigte EBITDA um 18% auf 25,6 Millionen Dollar gestiegen ist. Das Unternehmen eröffnete 9 neue Restaurants im gesamten System in 8 Bundesstaaten und erreichte damit insgesamt 547 Standorte. Die aktualisierte Prognose für das fiskalische Jahr 2024 rechnet mit einem Umsatzwachstum von 16,5-17,0% und 47 neuen Restauranteröffnungen im gesamten System.
- Total revenues increased 14.8% to $251.6 million
- Adjusted EBITDA grew 18% to $25.6 million
- Restaurant level operating profit margin improved to 18.9% from 18.7%
- System-wide sales increased 8.0% to $291.8 million
- Expansion continues with 9 new restaurants opened in Q3
- Net income decreased to $2.1 million from $5.4 million year-over-year
- Same-restaurant sales declined 1.9%
- Same-restaurant traffic decreased 4.4%
- Income from operations margin decreased to 2.5% from 3.6%
- Five planned restaurant openings delayed to 2025 due to Hurricane Milton
Insights
The Q3 results present a mixed picture for First Watch Restaurant Group. While total revenues showed strong growth of
However, the
The updated guidance suggesting continued negative same-restaurant traffic through year-end warrants caution, but the projected total revenue growth of
The restaurant sector dynamics revealed in First Watch's results highlight broader industry challenges. The divergence between total revenue growth and negative same-store metrics suggests heavy reliance on new store openings for growth, while existing locations face traffic headwinds. The absence of check management (price increases) in Q3 indicates a strategic focus on maintaining value perception, though this impacts per-person averages.
The company's ambitious target of 2,200 locations demonstrates confidence in their expansion model, supported by favorable employee turnover rates in a challenging labor market. However, the
Total revenues increased
Net income of
9 new system-wide restaurants opened in 8 states
BRADENTON, Fla., Nov. 07, 2024 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (“First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended September 29, 2024 (“Q3 2024”).
“We are pleased with our performance in Q3 as it reflects our teams’ superb restaurant-level operations, especially considering an uneven consumer backdrop. Traffic picked up through the quarter, our employee turnover once again improved and remains favorable relative to the industry as a whole and Adjusted EBITDA grew
Highlights:
- Total revenues increased
14.8% to$251.6 million in Q3 2024 from$219.2 million in Q3 2023 - System-wide sales increased
8.0% to$291.8 million in Q3 2024 from$270.3 million in Q3 2023 - Same-restaurant sales growth of negative
1.9% and same-restaurant traffic growth of negative4.4% * - Income from operations margin decreased to
2.5% in Q3 2024 from3.6% in Q3 2023 - Restaurant level operating profit margin** increased to
18.9% in Q3 2024 from18.7% in Q3 2023 - Net income decreased to
$2.1 million , or$0.03 per diluted share, in Q3 2024 from$5.4 million , or$0.09 per diluted share, in Q3 2023 - Adjusted EBITDA** increased to
$25.6 million in Q3 2024 from$21.6 million in Q3 2023 - Opened 9 system-wide restaurants in 8 states, resulting in a total of 547 system-wide restaurants (466 company-owned and 81 franchise-owned) across 29 states
- Update regarding Hurricane Milton: All company-owned First Watch restaurants were fully operational shortly after Hurricane Milton and, as such, the storm is not expected to have a material impact on same-restaurant sales in the fourth quarter. As a result of associated construction-related disruptions, five company-owned new restaurant openings, previously expected in December 2024, have been rescheduled to January 2025.
- The Company experienced no check management in the third quarter, though planned, targeted marketing campaigns had a small impact on net per person average.
___________________
* Comparing the thirteen-week periods ended September 29, 2024 and October 1, 2023 in order to compare like-for-like periods. See “Key Performance Indicators” for additional information.
** See Non-GAAP Financial Measures Reconciliations section below.
For additional financial information related to the thirteen weeks ended September 29, 2024, refer to the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2024, which can be accessed at https://investors.firstwatch.com in the Financials & Filings section.
Updated Outlook Fiscal Year 2024
Based upon third quarter results and current trends, the Company updated the following guidance metrics for the 52-week fiscal year ending December 29, 2024:
- Same-restaurant sales growth of around negative
1.0% with same restaurant traffic growth of negative4.0% -4.5% - Total revenue growth in the range of
16.5% to17.0% (1) - Adjusted EBITDA(2) in the range of
$110.0 million to$112.0 million (1) - Total new system-wide restaurant openings anticipated to be 47, net of 2 company-owned restaurant closures (43 new company-owned restaurants and 6 new franchise-owned restaurants), which reflects the effect of five new restaurant openings delayed by Hurricane Milton and rescheduled to early 2025.
- Blended tax rate of around
33.0% - Capital expenditures of around
$130.0 million invested primarily in new restaurant projects and planned remodels(3)
______________________
(1) Includes net impact of approximately
(2) We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.
(3) Does not include the capital outlays associated with the acquisition of franchise-owned restaurants.
Conference Call and Webcast
Chris Tomasso, Chief Executive Officer and President, and Mel Hope, Chief Financial Officer, will host a conference call and webcast to discuss these financial results for Q3 2024 on November 7, 2024 at 8:00 AM ET.
Interested parties may listen to the conference call via any one of two options:
- Dial 201-389-0914, which will be answered by an operator
- Join the webcast at https://investors.firstwatch.com/news-and-events/events
The webcast will be archived shortly after the call has concluded.
Definitions
The following definitions apply to these terms as used in this release:
System-wide restaurants: the total number of restaurants, including all company-owned and franchise- owned restaurants.
System-wide sales: consists of restaurant sales from our company-owned restaurants and franchise-owned restaurants. We do not recognize the restaurant sales from our franchise-owned restaurants as revenue.
Same-restaurant sales growth: the percentage change in year-over-year restaurant sales (excluding gift card breakage) for the comparable restaurant base, which is defined as the number of company-owned First Watch branded restaurants open for 18 months or longer as of the beginning of the fiscal year (“Comparable Restaurant Base”). For the thirteen weeks ended September 29, 2024 and October 1, 2023, there were 344 restaurants and 327 restaurants, respectively, in our Comparable Restaurant Base.
Same-restaurant traffic growth: the percentage change in traffic counts as compared to the same period in the prior year using the Comparable Restaurant Base. For the thirteen weeks ended September 29, 2024 and October 1, 2023, there were 344 restaurants and 327 restaurants, respectively, in our Comparable Restaurant Base.
Adjusted EBITDA: a non-GAAP measure, is defined as net income (loss) before depreciation and amortization, interest expense, income taxes and items that the Company does not consider in the evaluation of its ongoing core operating performance.
Adjusted EBITDA margin: a non-GAAP measure, is defined as Adjusted EBITDA as a percentage of total revenues.
Restaurant level operating profit: a non-GAAP measure, is defined as restaurant sales, less restaurant operating expenses, which include food and beverage costs, labor and other related expenses, other restaurant operating expenses, pre-opening expenses and occupancy expenses. In addition, Restaurant level operating profit excludes corporate-level expenses and items that are not considered in the Company’s evaluation of its ongoing core operating performance.
Restaurant level operating profit margin: a non-GAAP measure, is defined as Restaurant level operating profit as a percentage of restaurant sales.
About First Watch
First Watch is the leading Daytime Dining concept serving made-to-order breakfast, brunch and lunch using fresh ingredients. A recipient of hundreds of local “Best Breakfast” and “Best Brunch” accolades, First Watch's chef-driven menu rotates five times a year and includes elevated executions of classic favorites alongside specialties such as its Quinoa Power Bowl, Lemon Ricotta Pancakes, Chickichanga, Morning Meditation fresh juice and signature Million Dollar Bacon. After first appearing on the list in 2022 and 2023, First Watch was named 2024’s #1 Most Loved Workplace® in America by Newsweek and the Best Practice Institute. In 2023, First Watch was named the top restaurant brand in Yelp’s inaugural list of the top 50 most-loved brands in the U.S. In 2022, First Watch was awarded a sought-after MenuMasters honor by Nation's Restaurant News for its seasonal Braised Short Rib Omelet. First Watch operates more than 540 First Watch restaurants in 29 states. For more information, visit www.firstwatch.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “outlook,” “potential,” “project,” “projection,” “plan,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed herein, in our Annual Report on Form 10-K as of and for the year ended December 31, 2023, including under Part I. Item 1A. “Risk Factors” and Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at https://investors.firstwatch.com/financial-information/sec-filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: uncertainty regarding the Russia and Ukraine war, Israel-Hamas war and the related impact on macroeconomic conditions, including inflation, as a result of such conflicts or other related events; our vulnerability to changes in economic conditions and consumer preferences; our inability to successfully open new restaurants or establish new markets; our inability to effectively manage our growth; potential negative impacts on sales at our and our franchisees’ restaurants as a result of our opening new restaurants; a decline in visitors to any of the retail centers, lifestyle centers, or entertainment centers where our restaurants are located; lower than expected same-restaurant sales growth; unsuccessful marketing programs and limited time new offerings; changes in the cost of food; unprofitability or closure of new restaurants or lower than previously experienced performance in existing restaurants; our inability to compete effectively for customers; unsuccessful financial performance of our franchisees; our limited control over our franchisees’ operations; our inability to maintain good relationships with our franchisees; conflicts of interest with our franchisees; the geographic concentration of our system-wide restaurant base in the southeast portion of the United States; damage to our reputation and negative publicity; our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media; our limited number of suppliers and distributors for several of our frequently used ingredients and shortages or disruptions in the supply or delivery of such ingredients; information technology system failures or breaches of our network security; our failure to comply with federal and state laws and regulations relating to privacy, data protection, advertising and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection, advertising and consumer protection; our potential liability with our gift cards under the property laws of some states; our failure to enforce and maintain our trademarks and protect our other intellectual property; litigation with respect to intellectual property assets; our dependence on our executive officers and certain other key employees; our inability to identify, hire, train and retain qualified individuals for our workforce; our failure to obtain or to properly verify the employment eligibility of our employees; our failure to maintain our corporate culture as we grow; unionization activities among our employees; employment and labor law proceedings; labor shortages or increased labor costs or health care costs; risks associated with leasing property subject to long-term and non-cancelable leases; risks related to our sale of alcoholic beverages; costly and complex compliance with federal, state and local laws; changes in accounting principles applicable to us; our vulnerability to natural disasters, unusual weather conditions, pandemic outbreaks, political events, war and terrorism; our inability to secure additional capital to support business growth; our level of indebtedness; failure to comply with covenants under our credit facility; and the interests of our largest stockholder may differ from those of public stockholders.
The forward-looking statements included in this press release are made only as of the date hereof and are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. All information presented herein is based on our fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years and the associated quarters, months and periods of those fiscal years.
Investor Relations Contact
Steven L. Marotta
941-500-1918
investors@firstwatch.com
Media Relations Contact
Jenni Glester
407-864-5823
jglester@firstwatch.com
Non-GAAP Financial Measures (Unaudited)
To supplement the consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use the following non-GAAP measures, which present operating results on an adjusted basis: (i) Adjusted EBITDA, (ii) Adjusted EBITDA margin, (iii) Restaurant level operating profit and (iv) Restaurant level operating profit margin. Our presentation of these non-GAAP measures includes isolating the effects of some items that are either nonrecurring in nature or vary from period to period without any correlation to our ongoing core operating performance. These supplemental measures of performance are not required by or presented in accordance with GAAP. Management believes these non-GAAP measures provide investors with additional visibility into our operations, facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance, help to identify operational trends and allow for greater transparency with respect to key metrics used by management in our financial and operational decision making. Our non-GAAP measures may not be comparable to similarly titled measures used by other companies and have important limitations as analytical tools. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP as they may not provide a complete understanding of our performance. These non-GAAP measures should be reviewed in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
Management uses Adjusted EBITDA and Adjusted EBITDA margin (i) as factors in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the Company’s operating results and the effectiveness of our business strategies and (iii) internally as benchmarks to compare the Company’s performance to that of its competitors.
Non-GAAP Financial Measures Reconciliations
Adjusted EBITDA and Adjusted EBITDA margin - The following table reconciles Net income and Net income margin, the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted EBITDA margin for the periods indicated:
| THIRTEEN WEEKS ENDED | THIRTY-NINE WEEKS ENDED | ||||||||||||||
| (in thousands) | SEPTEMBER 29, 2024 | SEPTEMBER 24, 2023 | SEPTEMBER 29, 2024 | SEPTEMBER 24, 2023 | |||||||||||
| Net income | $ | 2,112 | $ | 5,418 | $ | 18,226 | $ | 22,737 | |||||||
| Depreciation and amortization | 15,153 | 10,434 | 41,960 | 28,992 | |||||||||||
| Interest expense | 3,441 | 1,848 | 9,421 | 5,792 | |||||||||||
| Income taxes | 1,384 | 1,243 | 9,062 | 7,833 | |||||||||||
| EBITDA | 22,090 | 18,943 | 78,669 | 65,354 | |||||||||||
| Strategic costs (1) | 558 | 168 | 954 | 681 | |||||||||||
| Loss on extinguishment and modification of debt | — | — | 428 | — | |||||||||||
| Stock-based compensation (2) | 2,076 | 1,764 | 6,394 | 5,386 | |||||||||||
| Delaware Voluntary Disclosure Agreement Program (3) | 26 | 44 | 101 | 456 | |||||||||||
| Transaction expenses, net (4) | 375 | 546 | 1,769 | 2,543 | |||||||||||
| Insurance proceeds in connection with natural disasters, net (5) | — | (326 | ) | — | (621 | ) | |||||||||
| Impairments and loss on disposal of assets (6) | 114 | 185 | 386 | 618 | |||||||||||
| Recruiting and relocation costs (7) | 359 | 305 | 634 | 415 | |||||||||||
| Severance costs (8) | 26 | — | 204 | 26 | |||||||||||
| Adjusted EBITDA | $ | 25,624 | $ | 21,629 | $ | 89,539 | $ | 74,858 | |||||||
| Total revenues | $ | 251,609 | $ | 219,212 | $ | 752,619 | $ | 646,918 | |||||||
| Net income margin | 0.8 | % | 2.5 | % | 2.4 | % | 3.5 | % | |||||||
| Adjusted EBITDA margin | 10.2 | % | 9.9 | % | 11.9 | % | 11.6 | % | |||||||
| Additional information | |||||||||||||||
| Deferred rent expense (9) | $ | 327 | $ | 661 | $ | 1,076 | $ | 1,575 | |||||||
___________________________
(1) Represents costs related to process improvements and strategic initiatives. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(2) Represents non-cash, stock-based compensation expense which is recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(3) Represents professional service costs incurred in connection with the Delaware Voluntary Disclosure Agreement Program related to unclaimed or abandoned property. These costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(4) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, expenses related to debt, secondary offering costs and, in 2024, an offsetting gain on release of contingent consideration liability.
(5) Represents insurance recoveries, net of costs incurred, in connection with hurricane damage, which were recorded in Other income, net on the Consolidated Statements of Operations and Comprehensive Income.
(6) Represents costs related to the disposal of assets due to retirements, replacements or certain restaurant closures. There were no impairments recognized during the periods presented.
(7) Represents costs incurred for hiring qualified individuals. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(8) Severance costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(9) Represents the non-cash portion of straight-line rent expense recorded within both Occupancy expenses and General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
Restaurant level operating profit and Restaurant level operating profit margin
Restaurant level operating profit and Restaurant level operating profit margin are not indicative of our overall results, and because they exclude corporate-level expenses, do not accrue directly to the benefit of our stockholders. We will continue to incur such expenses in the future. Restaurant level operating profit and Restaurant level operating profit margin are important measures we use to evaluate the performance and profitability of each operating restaurant, individually and in the aggregate and to make decisions regarding future spending and other operational decisions. We believe that Restaurant level operating profit and Restaurant level operating profit margin provide useful information about our operating results, identify operational trends and allow for transparency with respect to key metrics used by us in our financial and operational decision-making.
The following tables reconcile Income from operations and Income from operations margin, the most directly comparable GAAP financial measures, to Restaurant level operating profit and Restaurant level operating profit margin for the periods indicated:
| THIRTEEN WEEKS ENDED | THIRTY-NINE WEEKS ENDED | ||||||||||||||
| (in thousands) | SEPTEMBER 29, 2024 | SEPTEMBER 24, 2023 | SEPTEMBER 29, 2024 | SEPTEMBER 24, 2023 | |||||||||||
| Income from operations | $ | 6,313 | $ | 7,738 | $ | 35,046 | $ | 34,412 | |||||||
| Less: Franchise revenues | (2,644 | ) | (3,717 | ) | (8,889 | ) | (10,868 | ) | |||||||
| Add: | |||||||||||||||
| General and administrative expenses | 27,680 | 25,179 | 82,527 | 73,168 | |||||||||||
| Depreciation and amortization | 15,153 | 10,434 | 41,960 | 28,992 | |||||||||||
| Transaction expenses, net (1) | 375 | 546 | 1,769 | 2,543 | |||||||||||
| Impairments and loss on disposal of assets (2) | 114 | 185 | 386 | 618 | |||||||||||
| Restaurant level operating profit | $ | 46,991 | $ | 40,365 | $ | 152,799 | $ | 128,865 | |||||||
| Restaurant sales | $ | 248,965 | $ | 215,495 | $ | 743,730 | $ | 636,050 | |||||||
| Income from operations margin | 2.5 | % | 3.6 | % | 4.7 | % | 5.4 | % | |||||||
| Restaurant level operating profit margin | 18.9 | % | 18.7 | % | 20.5 | % | 20.3 | % | |||||||
| Additional information | |||||||||||||||
| Deferred rent expense (3) | $ | 277 | $ | 611 | $ | 927 | $ | 1,425 | |||||||
____________________________
(1) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, expenses related to debt, secondary offering costs and, in 2024, an offsetting gain on release of contingent consideration liability.
(2) Represents costs related to the disposal of assets due to retirements, replacements or certain restaurant closures. There were no impairments recognized during the periods presented.
(3) Represents the non-cash portion of straight-line rent expense recorded within Occupancy expenses on the Consolidated Statements of Operations and Comprehensive Income.
| FIRST WATCH RESTAURANT GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (Unaudited) | |||||||||||||||
| THIRTEEN WEEKS ENDED | THIRTY-NINE WEEKS ENDED | ||||||||||||||
| SEPTEMBER 29, 2024 | SEPTEMBER 24, 2023 | SEPTEMBER 29, 2024 | SEPTEMBER 24, 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Restaurant sales | $ | 248,965 | $ | 215,495 | $ | 743,730 | $ | 636,050 | |||||||
| Franchise revenues | 2,644 | 3,717 | 8,889 | 10,868 | |||||||||||
| Total revenues | 251,609 | 219,212 | 752,619 | 646,918 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Restaurant operating expenses (exclusive of depreciation and amortization shown below): | |||||||||||||||
| Food and beverage costs | 55,865 | 48,709 | 163,852 | 143,028 | |||||||||||
| Labor and other related expenses | 83,756 | 73,137 | 247,332 | 212,312 | |||||||||||
| Other restaurant operating expenses | 38,891 | 33,694 | 113,232 | 97,572 | |||||||||||
| Occupancy expenses | 21,075 | 17,555 | 60,733 | 49,950 | |||||||||||
| Pre-opening expenses | 2,387 | 2,035 | 5,782 | 4,323 | |||||||||||
| General and administrative expenses | 27,680 | 25,179 | 82,527 | 73,168 | |||||||||||
| Depreciation and amortization | 15,153 | 10,434 | 41,960 | 28,992 | |||||||||||
| Impairments and loss on disposal of assets | 114 | 185 | 386 | 618 | |||||||||||
| Transaction expenses, net | 375 | 546 | 1,769 | 2,543 | |||||||||||
| Total operating costs and expenses | 245,296 | 211,474 | 717,573 | 612,506 | |||||||||||
| Income from operations | 6,313 | 7,738 | 35,046 | 34,412 | |||||||||||
| Interest expense | (3,441 | ) | (1,848 | ) | (9,421 | ) | (5,792 | ) | |||||||
| Other income, net | 624 | 771 | 1,663 | 1,950 | |||||||||||
| Income before income taxes | 3,496 | 6,661 | 27,288 | 30,570 | |||||||||||
| Income tax expense | (1,384 | ) | (1,243 | ) | (9,062 | ) | (7,833 | ) | |||||||
| Net income | $ | 2,112 | $ | 5,418 | $ | 18,226 | $ | 22,737 | |||||||
| Net income | $ | 2,112 | $ | 5,418 | $ | 18,226 | $ | 22,737 | |||||||
| Other comprehensive loss: | |||||||||||||||
| Unrealized (loss) gain on derivatives | (3,560 | ) | 1,257 | (2,421 | ) | 1,097 | |||||||||
| Income tax related to other comprehensive income | 888 | (272 | ) | 604 | (272 | ) | |||||||||
| Comprehensive income | $ | (560 | ) | $ | 6,403 | $ | 16,409 | $ | 23,562 | ||||||
| Net income per common share - basic | $ | 0.03 | $ | 0.09 | $ | 0.30 | $ | 0.38 | |||||||
| Net income per common share - diluted | $ | 0.03 | $ | 0.09 | $ | 0.29 | $ | 0.37 | |||||||
| Weighted average number of common shares outstanding - basic | 60,428,016 | 59,646,027 | 60,275,167 | 59,424,989 | |||||||||||
| Weighted average number of common shares outstanding - diluted | 61,851,127 | 61,562,524 | 62,343,751 | 61,016,105 | |||||||||||
FAQ
What was First Watch's (FWRG) revenue growth in Q3 2024?
How many new restaurants did First Watch (FWRG) open in Q3 2024?
What was First Watch's (FWRG) same-restaurant sales performance in Q3 2024?
What is First Watch's (FWRG) total revenue growth guidance for fiscal 2024?
