What guidance did First Watch's management provide for the next earnings period?

What factors drove the changes in First Watch's revenue and profit?

What were the key takeaways from First Watch’s earnings call?

What is the revenue and EPS growth rate for First Watch year over year?

What does First Watch do and what are its main business segments?

What is First Watch's latest dividend and current dividend yield?

What is the market's earnings forecast for First Watch next quarter?

What were the key takeaways from First Watch's earnings call?

- **Revenue Growth**: 25.6% YoY to $316M, driven by 7.1% same-restaurant sales and 21 new openings.
- **New Restaurant Success**: 9/10 all-time highest opening week sales achieved in Q3, with 13/21 being second-gen sites.
- **Margin Expansion**: Restaurant-level margin 19.7% (80 bps YoY), adjusted EBITDA +60 bps to $34.1M.
- **Pricing Strategy**: No short-term price hikes to protect long-term 18-20% margin target.
- **Employee Strength**: 10Q employee retention improvement, named #1 Most Loved Workplace.
- **Marketing Impact**: 2x engagement in September campaign, 7M identified customers for targeted campaigns.

**【CEO Summary Section】**
- Total revenue increased 25.6% YoY to $316 million, driven by 7.1% same-restaurant sales growth and 21 new system-wide openings.
- 9 of the 10 highest opening week sales in company history were achieved in Q3, with 13 of 21 new restaurants being second-generation sites.
- Aggressive unit expansion targets 63-64 new locations for 2025 (11% system-wide growth), with 55 company-owned openings.
- Pricing strategy maintained to protect long-term margin profile, despite 3% commodity inflation (bacon, coffee).
- Employee retention metrics improved for 10 consecutive quarters, with First Watch named America's Most Loved Workplace for 2025.
- Digital platform enhancements (app, CRM) support 7 million identified customers and targeted campaigns.

**【CFO Financial Commentary】**
- Restaurant-level operating profit margin expanded to 19.7% (80 bps YoY), driven by 3.6% labor inflation vs. 32.6% of sales.
- Adjusted EBITDA rose 60 bps to $34.1 million, with 2025 guidance updated to $123 million (high end of prior range).
- Updated 2025 outlook: same-restaurant sales +4%, total revenue +20-21%, commodity inflation 6%, labor inflation 4%.
- G&A expenses as % of revenue decreased 30 bps to 10.7%, benefiting from timing of leadership conference.

**【Q&A Key Highlights】**
- Traffic growth: 2.6% in-restaurant (strongest in 7 quarters), 3% delivery (2x engagement vs. prior year campaign).
- New restaurant success: Dover, DE location achieved 185% of comp base average in opening week.
- Marketing: 1/3 of portfolio targeted in 2025, with 2x response rate in September campaign.
- Commodity outlook: moderating eggs/avocados offset by persistent bacon/coffee inflation.
- Labor: $1+ minimum wage increases in key markets, but seeking efficiency gains.

First Watch Restaurant Group, Inc. (FWRG) Q3 2025 Earnings Call Transcript

Restaurant Sales

Franchise Revenues

FWRG

FWRG fundamentals

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