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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FWRG

FWRG fundamentals

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