First Watch Restaurant Group, Inc. (FWRG) Earnings History

First Watch Restaurant Group, Inc. - Q4 FY2025 EarningsBeat

Filed at: Feb 24, 2026, 10:37 AM EST|Read from source

Amended Filing (8-K/A) — This is an amended earnings release filed to correct or supplement the original filing. Amendments contain the complete updated information, including all corrections.

EXECUTIVE SUMMARY

First Watch Restaurant Group reported strong top-line growth driven by new restaurant openings and modest same-restaurant sales increases. While revenue and Adjusted EBITDA saw significant year-over-year improvements, operating income and margins declined for the full fiscal year, indicating pressure from increased operating costs.

POSITIVE HIGHLIGHTS

  • •

    Total revenues increased 20.2% to $316.4 million in Q4 2025 from $263.3 million in Q4 2024.

    positive
  • •

    Total revenues increased 20.3% to $1.2 billion in 2025 from $1.0 billion in 2024.

    positive
  • •

    Opened 64 system-wide restaurants in 2025, contributing to growth.

    positive
  • •

    Adjusted EBITDA increased to $33.7 million in Q4 2025 from $24.3 million in Q4 2024.

    positive
  • •

    Adjusted EBITDA increased to $120.9 million in 2025 from $113.8 million in 2024.

    positive
  • •

    Restaurant level operating profit margin remained strong at 19.0% in Q4 2025, up from 18.8% in Q4 2024.

    positive

CONCERNS & RISKS

  • •

    Same-restaurant traffic growth was negative 1.9% in Q4 2025, indicating a decline in customer visits despite overall sales growth.

    attention
  • •

    Income from operations decreased to $27.5 million in 2025 from $38.9 million in 2024.

    negative
  • •

    Income from operations margin decreased to 2.3% in 2025 from 3.9% in 2024.

    negative
  • •

    Restaurant level operating profit margin decreased to 18.5% in 2025 from 20.1% in 2024.

    negative
  • •

    Net income margin decreased to 1.6% in 2025 from 1.9% in 2024.

    negative
  • •

    Adjusted EBITDA margin decreased to 9.9% in 2025 from 11.2% in 2024.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$2.39B
N/A
Net Income
Quarterly
$15.16B
+2068.7%
Prior year: $699.00M
Annual (YTD)
$19.43B
N/A
Prior year: $18.93B
EPS (Diluted)
Quarterly
$0.24
+2300.0%
Prior year: $0.01
Operating Income
Quarterly
$9.04B
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
2.9%
Prior Year
1.5%
YoY Change
+140 bps
Net Margin
Current Quarter
4.8%
Prior Year
0.3%
YoY Change
+450 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

same-restaurant sales growth
$1.0M—$3.0M
Mid-point: $2.0M
total revenue growth
$12.0M—$14.0M
Mid-point: $13.0M
Adjusted EBITDA
132,000,000—140,000,000
Mid-point: 136,000,000
new system-wide restaurants
59—63
Mid-point: 61
capital expenditures
150,000,000—160,000,000
Mid-point: 155,000,000

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Transaction expenses, net
Included in Consolidated Statements of Operations.
+$0.313M
FY2025
Transaction expenses, net
Included in Consolidated Statements of Operations.
+$2.533M
Q4 2025
Strategic transition costs
Included in Consolidated Statements of Operations.
+$0.531M
FY2025
Strategic transition costs
Included in Consolidated Statements of Operations.
+$3.279M
Q4 2025
Impairments and loss on disposal of assets
Included in Consolidated Statements of Operations.
+$0.137M
FY2025
Impairments and loss on disposal of assets
Included in Consolidated Statements of Operations.
+$0.448M
Q4 2025
Delaware Voluntary Disclosure Agreement Program
Included in Consolidated Statements of Operations.
+$0.001M
FY2025
Delaware Voluntary Disclosure Agreement Program
Included in Consolidated Statements of Operations.
+$0.055M
Total Impact
+$7.297M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

2025 was a year of significant progress on a number of fronts for First Watch.

— First Watch Restaurant Group, Inc., Q4 FY2025 2025 Earnings Call

Continuing our industry-leading new restaurant growth of nearly 11%, we increased total revenues by more than 20%, which included same-restaurant sales growth of 3.6% and positive same-restaurant traffic.

— First Watch Restaurant Group, Inc., Q4 FY2025 2025 Earnings Call

As we look to 2026 and beyond, we are energized by the growth opportunities across all facets of our business, particularly the expansion of our evolving digital marketing platform.

— First Watch Restaurant Group, Inc., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Restaurants Opened
64
restaurants
Total Restaurants
633
restaurants

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.