First Watch Restaurant Group Inc (NAS:FWRG)

Q3 2025 First Watch Restaurant Group Inc Earnings Call Transcript

Nov 4, 2025 / 01:00 PM GMT

Release Date Price: $17.6 (+11.04%)

Transcript 10-Q8-K

Key Points

Positve

First Watch Restaurant Group Inc (FWRG) reported a 25.6% increase in total revenue compared to the third quarter of last year, driven by strong new restaurant openings, positive same restaurant sales, and strategic franchise acquisitions.
The company achieved its best quarterly result for same restaurant traffic growth and same restaurant sales growth in over two years, with a 7.1% increase in same restaurant sales.
Restaurant level operating profit margins improved significantly, reaching 19.7% in the third quarter, an 80 basis point improvement from the previous year.
First Watch's aggressive unit expansion strategy is on track, with 21 new system-wide restaurants opened in the third quarter and a target of 63 to 64 new restaurant openings for the year.
The company's marketing efforts have been successful, with increased brand awareness and positive customer response to new digital platforms, contributing to strong sales performance.

Negative

Commodity cost inflation is expected to be approximately 6% for the fiscal year 2025, with bacon and coffee being primary drivers of inflation.
Labor cost inflation is projected to be around 4%, which could impact profit margins if not managed effectively.
Despite strong performance, the company faces challenges from a volatile commodity environment, which could affect future pricing strategies.
The company is experiencing increased competition for second-generation sites, which could impact its ability to secure prime locations for new restaurant openings.
While the company has seen success in its marketing efforts, only a third of its markets have benefited from these initiatives, indicating potential challenges in scaling these efforts across all locations.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FWRG.OQ - First Watch Restaurant Group Inc
Q3 2025 First Watch Restaurant Group Inc Earnings Call
Nov 04, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by and welcome to the First Watch Restaurant Group Inc. 3rd quarter earnings conference call occurring today, November 4, 2025 at 8 a.m. Eastern time.

Please note that all participants are currently in a listen-only mode. Following the presentation, the conference call will be opened for analyst questions, and instructions on how to ask the question will be given at that time.

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. Please go ahead.

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