First Watch's Q2 2025 Earnings: Unraveling Contradictions on Traffic Trends, Marketing Strategies, and Cost Management

Traffic and consumer behavior trends, marketing spend and impact, egg cost inflation and pricing strategy, targeted marketing efforts and impact on traffic, impact of promotions on mix and profitability are the key contradictions discussed in First Watch Restaurant Group's latest 2025Q2 earnings call.



Revenue Growth and New Restaurant Openings:
- First Watch Restaurant Group, Inc. reported revenue of $307.9 million for Q2 2025, up 19.1% year-on-year.
- The growth was driven by the opening of 17 new system-wide restaurants and the acquisition and integration of 19 franchise restaurants.

Positive Same-Restaurant Sales and Traffic Trends:
- The company achieved positive same-restaurant sales growth of 3.5%, with a 2% positive same-restaurant traffic growth.
- This was attributed to strategic acquisitions, high-performing new restaurant openings, and effective marketing strategies.

Successful Integration of Franchise Restaurants:
- The acquisition and integration of 19 franchise restaurants increased Q2 revenue by approximately $7 million.
- This integration contributed to the company's growth by expanding its footprint and enhancing market share.

Positive Consumer Trends and Demographics:
- First Watch reported that its customer base is now skewing more towards the Gen Z and millennial generations, with more than half of its customers below 50 years old.
- This shift has been driven by tailored marketing efforts, culinary innovations, and a focus on enhancing the customer experience.