Q1 2025 First Watch Restaurant Group Inc Earnings Call Transcript

May 06, 2025 / 12:00PM GMT

Release Date Price: $15.33 (-17.62%)

Transcript 10-Q8-K

Key Points

Positve

First Watch Restaurant Group Inc (FWRG) reported a 16% total revenue growth in the first quarter of 2025.
The company opened 13 new system-wide restaurants, expanding its footprint across 10 states.
First Watch's strategic marketing efforts have shown promising results, enhancing brand awareness and customer engagement.
The company has successfully reduced employee turnover rates for the eighth consecutive quarter.
First Watch's new restaurant openings are outperforming expectations, supporting their growth strategy and market expansion.

Negative

Same-restaurant traffic was negative 0.7% for the quarter, with in-restaurant traffic below expectations.
The company is facing higher inflationary pressures, particularly in key commodities like eggs, bacon, coffee, and avocados.
Adjusted EBITDA was $5.8 million below last year, with a margin decrease to 8.1% from 11.8%.
The company's margins are being pressured by increased health benefit costs and higher labor expenses.
First Watch's decision to increase portion sizes without raising prices has added pressure on margins.

Operator

Thank you for standing by, and welcome to the First Watch Restaurant Group Inc. first quarter earnings conference call, occurring today, May 6, 2025, at 8:00 A.M. Eastern Time. (Operator Instructions) This call will be archived and available for replay at investors.firstwatch.com under the News and Events section.

I would now like to turn the conference over to Steven Marotta, Vice President of Investor Relations at First Watch to begin.

Steven Marotta

First Watch Restaurant Group Inc - Vice President of Investor Relations

Hello, everyone. I'm joined by First Watch's Chief Executive Officer and President, Chris Tomasso; and Chief Financial Officer, Mel Hope. This morning First Watch issued its earnings release for the first quarter of fiscal 2025 on GlobeNewswire 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 company's actual results to

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