Q3 2024 First Watch Restaurant Group Inc Earnings Call Transcript
Key Points
- First Watch Restaurant Group Inc (FWRG) reported strong adjusted EBITDA growth and increased restaurant-level operating profit margin.
- The company opened nine new system-wide restaurants across eight states, with seven being company-owned.
- Dining room traffic turned positive towards the end of the quarter, attributed to successful targeted marketing campaigns.
- First Watch was recognized as the number one most loved workplace in America by Newsweek and the Best Practice Institute.
- The company's new restaurant openings are outperforming underwriting expectations by roughly 10%, indicating strong site selection and operational execution.
- Same restaurant traffic declined by 4.4% in the third quarter, contributing to negative same restaurant sales of 1.9%.
- Third-party delivery traffic moved more negative, acting as a drag on consolidated traffic.
- The company experienced commodity inflation of 3.4%, with bacon, avocados, and eggs being primary drivers.
- Hurricane-related disruptions impacted construction and led to the rescheduling of some new restaurant openings.
- Off-premise traffic remains negative, although direct off-premise traffic has stabilized.
Greetings and welcome to the First Swatch Restaurant Group third quarter, 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Steven Mora Vice President, investor Relations. Thank you, sir. You may begin.
Hello, everyone. I am joined by first watches, Chief Executive Officer and President Chris Tommaso and Chief Financial Officer Mel Hope this morning first watch issued its earnings release for the third quarter of fiscal year 2024 on Globe Newswire and filed its quarterly report on form 10-Q with the SEC. These documents can be found at investors dot First watch dotcom.
This conference call will include forward-looking statements that are subject to various risks and uncertainties that could cause the company's actual results to differ materially from these statements. Such statements include without limitation statements concerning the conditions of the company's industry
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