First Watch Restaurant Group Inc (FWRG, Financial) released its Q3 2023 earnings report on November 1, 2023, revealing strong financial results. The company reported a 17.3% increase in total revenue, amounting to $219.2 million, up from $186.9 million in Q3 2022. The net income also saw a significant rise, reaching $5.4 million compared to $46,000 in the same period last year.
Financial Highlights
First Watch's same-restaurant sales grew by 4.8%, and system-wide sales increased by 14.9% to $270.3 million. The income from operations margin improved to 3.6% in Q3 2023, up from 1.4% in Q3 2022. The restaurant level operating profit margin also increased to 18.7% in Q3 2023 from 17.3% in Q3 2022.
During the quarter, the company opened 13 system-wide restaurants across 10 states and acquired 11 operating franchise-owned restaurants, bringing the total to 505 system-wide restaurants across 29 states.
CEO Commentary
First Watch delivered impressive Q3 revenue and earnings results," said Chris Tomasso, First Watch CEO and President. "We grew share while delivering total revenue growth of 17.3%, same-restaurant sales growth of 4.8% and Adjusted EBITDA growth of more than 25.0%. The ability of our teams to consistently execute at a high level, coupled with our strong brand positioning, underpins my confidence in our potential to quadruple our restaurant count and successfully navigate within virtually any economic environment."
Outlook for Fiscal Year 2023
First Watch updated its guidance for the fiscal year ending December 31, 2023. The company expects same-restaurant sales growth in the range of 7.0% to 8.0%, total revenue growth in the range of 20.0% to 21.0%, and Adjusted EBITDA in the range of $91.0 million to $92.0 million.
The company also plans to open 49-52 new system-wide restaurants and expects capital expenditures in the range of $85.0 million to $90.0 million, primarily invested in new restaurant projects and planned remodels.
Explore the complete 8-K earnings release (here) from First Watch Restaurant Group Inc for further details.
