First Watch Restaurant Group Q2 Earnings Call Highlights

3 weeks ago 9

MarketBeat

Tue, August 4, 2026 astatine 8:04 AM CDT 8 min read

Key Points

Interested successful First Watch Restaurant Group, Inc.? Here are 5 stocks we similar better.
Strong second-quarter growth: Revenue roseate 15.2% to $354.7 million, driven by 3.4% same-restaurant income growth, selling initiatives and 18 caller edifice openings. Adjusted EBITDA accrued 13.5% to $34.5 million, portion restaurant-level margins improved to 18.8%.
2026 outlook raised for income but lowered for EBITDA: First Watch lifted its same-restaurant income outlook to 1.5%-3% and gross maturation forecast to 12.5%-14%, but chopped adjusted EBITDA guidance to $133 million-$136 cardinal due to the fact that beardown request for premium beef offerings accrued nutrient costs.
Expansion continues astatine a measured pace: The institution ended the 4th with 665 restaurants crossed 33 states and present expects 60-62 nett caller openings successful 2026. Beginning successful 2027, it plans astir 50 company-owned openings annually portion targeting affirmative escaped currency travel and a stronger equilibrium sheet.

First Watch Restaurant Group: A First-Rate Small-Cap Growth Stock

First Watch Restaurant Group (NASDAQ:FWRG) reported second-quarter gross maturation of 15.2% arsenic affirmative same-restaurant sales, selling initiatives and caller edifice openings supported results. The daytime eating concatenation besides raised the debased extremity of its full-year same-restaurant income and gross maturation outlook, portion lowering its adjusted EBITDA forecast owed to higher costs associated with beardown request for premium beef paper items.

Chief Executive Officer and President Chris Tomasso said the institution generated 3.4% same-restaurant income maturation during the quarter. Comparable postulation improved sequentially and turned affirmative successful June, though same-restaurant postulation for the afloat 4th was fundamentally flat. The institution said quarterly same-restaurant postulation improved 160 ground points from the archetypal 4th and outperformed casual eating and the broader edifice industry, according to Black Box.

→ Popular's Earnings Beat Shows Why This Bank Stock Keeps Climbing

"We are pleased to study different beardown 4th of growth," Tomasso said, citing income gains from some comparable restaurants and caller portion openings. First Watch ended the 4th with 665 restaurants successful 33 states and said it opened 18 caller system-wide locations during the period.

Marketing, Menu Changes Support Sales Mix

Management attributed portion of its postulation and income momentum to expanded selling efforts initiated aboriginal past year. The institution has focused connected targeted, data-informed campaigns designed to promote repetition visits among existing guests and bring caller consumers into the brand.

Read Entire Article