Q2 2024 First Watch Restaurant Group Inc Earnings Call Transcript
Key Points
- First Watch Restaurant Group Inc (FWRG) reported a 37% increase in adjusted EBITDA compared to the previous year.
- The company opened seven new restaurants in six states during the second quarter, expanding its footprint.
- First Watch completed its largest franchisee acquisition, adding 21 restaurants and development rights in the Raleigh-Durham area.
- The company has a robust pipeline with over 130 new restaurant projects, supporting its long-term growth strategy.
- Customer experience scores improved, and employee turnover decreased for the sixth consecutive quarter.
- Same restaurant sales slipped by 30 basis points with a 4% decline in same restaurant traffic.
- The company faces macroeconomic headwinds, particularly affecting weekday breakfast and lunch traffic.
- Lower income consumers and infrequent customers have reduced their visits, impacting overall traffic.
- Third-party off-premise channels remain volatile, contributing to traffic challenges.
- The company anticipates continued challenges in the second half of the year, with same restaurant sales growth expected to range from negative 2% to flat.
Thank you for standing by, and welcome to the First Watch Restaurant Group Inc second quarter earnings conference call occurring today, August 6, 2024, at 8:00 AM Eastern Time. (Operator Instructions) This call will be archived and available for replay at investors.firstwatch.com under the News & Events section.
I would now like to turn the conference over to Steven Marotta, Vice President of Investor Relations at First Watch to begin.
Hello everyone. I am joined by First Watchâs Chief Executive Officer and President, Chris Tomasso; and Chief Financial Officer, Mel Hope. This morning, First Watch issued its earnings release for the second quarter of fiscal 2024 on Globe Newswire and filed its quarterly report on Form 10-Q with the SEC. These documents can be found at investors.firstwatch.com.
This conference call will include forward-looking statements that are subject to various risks and uncertainties that could cause the companyâs actual results to
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