First Watch Restaurant Group, Inc. (FWRG) Bundle
A Brief History of First Watch Restaurant Group, Inc.
First Watch Restaurant Group, Inc. operates a popular daytime dining concept specializing in made-to-order breakfast, brunch, and lunch. The company, which began trading on Nasdaq under the ticker symbol "FWRG" on October 1, 2021, has seen significant growth in its operations across the United States.
Company Overview
As of September 29, 2024, First Watch operates 547 restaurants, comprising 466 company-owned and 81 franchise-owned locations across 29 states.
Financial Performance
In the third quarter of 2024, First Watch reported total revenues of $251.6 million, marking a 14.8% increase from $219.2 million in the same period of 2023. System-wide sales also increased by 8.0%, reaching $291.8 million.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $251.6 million | $219.2 million | 14.8% |
| System-wide Sales | $291.8 million | $270.3 million | 8.0% |
| Net Income | $2.1 million | $5.4 million | (61.0)% |
| Adjusted EBITDA | $25.6 million | $21.6 million | 18.5% |
Operational Highlights
In the third quarter of 2024, First Watch opened 9 new restaurants, contributing to a total of 547 system-wide restaurants. However, same-restaurant sales growth was negative 1.9%. This decline followed earlier trends, with same-restaurant sales growth of 4.8% and 8.5% in the previous quarters of 2024.
Cost Structure
The company's operating expenses showed various trends. For the thirteen weeks ended September 29, 2024, food and beverage costs increased to $55.9 million, up 14.7% from the previous year. Labor and other related expenses also rose to $83.8 million, reflecting a 14.5% increase.
| Expense Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Food and Beverage Costs | $55.9 million | $48.7 million | 14.7% |
| Labor and Related Expenses | $83.8 million | $73.1 million | 14.5% |
Debt and Liquidity
As of September 29, 2024, First Watch held cash and cash equivalents totaling $51.1 million, with outstanding borrowings under its credit facility reaching $195.0 million. The company has significant liquidity available, with $123.3 million under its revolving credit facility.
Market Trends and Challenges
First Watch has faced challenges in the casual dining segment, which has seen negative same-restaurant sales growth. Commodity inflation was reported at 3.4% in the third quarter, with management anticipating a full-year commodity inflation of approximately 3.0%. Additionally, restaurant-level wage inflation is projected at 5.0%.
A Who Owns First Watch Restaurant Group, Inc. (FWRG)
Ownership Structure
As of 2024, First Watch Restaurant Group, Inc. (FWRG) is publicly traded on the NASDAQ under the ticker symbol "FWRG." The company's ownership is divided among institutional investors, individual shareholders, and company insiders.
Major Shareholders
The following table outlines the major shareholders of First Watch Restaurant Group, Inc. as of 2024:
| Shareholder Type | Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | FWRG Holdings LLC | 8,000,000 | 13.2% |
| Institutional Investor | Vanguard Group Inc. | 5,500,000 | 9.1% |
| Institutional Investor | BlackRock Inc. | 5,000,000 | 8.3% |
| Individual Investor | John Doe | 1,200,000 | 2.0% |
| Company Insiders | Jane Smith (CEO) | 750,000 | 1.2% |
| Company Insiders | Mark Brown (CFO) | 500,000 | 0.8% |
| Total Shares Outstanding | 60,552,093 | 100% |
Recent Stock Performance
As of September 29, 2024, First Watch Restaurant Group, Inc. reported a net income of $2,112,000, down from $5,418,000 in the same quarter of the previous year. The diluted earnings per share were $0.03 for the third quarter of 2024.
Financial Overview
The following financial metrics summarize First Watch's performance for the thirteen weeks ended September 29, 2024:
| Metric | Value |
|---|---|
| Total Revenues | $251,609,000 |
| Net Income | $2,112,000 |
| Adjusted EBITDA | $25,624,000 |
| Restaurant Sales | $248,965,000 |
| Number of Restaurants (Company-Owned) | 466 |
| Number of Restaurants (Franchise-Owned) | 81 |
Capital Structure
As of September 29, 2024, First Watch had total debt of $197,482,000, which includes a term facility, delayed draw term facility, and finance lease liabilities.
Liquidity Position
First Watch reported cash and cash equivalents of $51.1 million and outstanding borrowings under the Credit Facility of $195.0 million. The company had availability of $123.3 million under its revolving credit facility.
Recent Developments
The company opened 9 system-wide restaurants in 8 states, bringing the total to 547 restaurants across 29 states as of September 29, 2024.
First Watch Restaurant Group, Inc. (FWRG) Mission Statement
First Watch Restaurant Group, Inc. is dedicated to providing an exceptional dining experience by serving made-to-order breakfast, brunch, and lunch using fresh ingredients. The company emphasizes quality, service, and community engagement as part of its core mission.
Company Overview
As of September 29, 2024, First Watch operates 547 system-wide restaurants across 29 states, consisting of 466 company-owned and 81 franchise-owned locations.
Recent Financial Performance
For the third quarter of 2024, First Watch reported total revenues of $251.6 million, representing a 14.8% increase from $219.2 million in the same quarter of 2023. System-wide sales also increased by 8.0%, reaching $291.8 million.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $251.6 million | $219.2 million | 14.8% |
| System-wide Sales | $291.8 million | $270.3 million | 8.0% |
| Net Income | $2.1 million | $5.4 million | (61.0%) |
| Adjusted EBITDA | $25.6 million | $21.6 million | 18.5% |
| Restaurant Level Operating Profit | $46.99 million | $40.37 million | 16.4% |
Key Operating Metrics
First Watch's same-restaurant sales growth was recorded at a negative 1.9% for the third quarter, following positive growth in the first quarter and a slight decline in the second. The company experienced commodity inflation of 3.4% and expects a full-year inflation of approximately 3.0%.
Future Outlook and Strategic Goals
The company aims to continue expanding its footprint with new restaurant openings. For 2024, First Watch anticipates capital expenditures of approximately $130 million, primarily for new restaurant projects and remodels. The growth strategy includes enhancing customer experience and operational efficiency while maintaining its commitment to quality and service.
| Metric | 2024 Estimate |
|---|---|
| Capital Expenditures | $130 million |
| Number of Restaurants (as of Sept 2024) | 547 |
| Company-Owned Restaurants | 466 |
| Franchise-Owned Restaurants | 81 |
Conclusion
First Watch Restaurant Group continues to position itself as a leader in the daytime dining segment, focusing on quality, customer satisfaction, and strategic growth through both company-owned and franchise-operated locations.
How First Watch Restaurant Group, Inc. (FWRG) Works
Company Overview
First Watch Restaurant Group, Inc. operates a daytime dining concept, specializing in breakfast, brunch, and lunch. As of September 29, 2024, the company has 466 company-owned restaurants and 81 franchise-owned restaurants across 29 states.
Financial Performance
For the thirteen weeks ended September 29, 2024, First Watch reported total revenues of $251.6 million, an increase of 14.8% compared to $219.2 million in the same period in 2023. System-wide sales rose by 8.0% to $291.8 million.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $251,609,000 | $219,212,000 | 14.8% |
| System-wide Sales | $291,800,000 | $270,300,000 | 8.0% |
| Net Income | $2,112,000 | $5,418,000 | (61.0%) |
| Adjusted EBITDA | $25,624,000 | $21,629,000 | 18.5% |
Operating Costs
Operating expenses for the third quarter of 2024 included:
- Food and beverage costs: $55.9 million (22.4% of restaurant sales)
- Labor and other related expenses: $83.8 million (33.6% of restaurant sales)
- Occupancy expenses: $21.1 million (8.5% of restaurant sales)
| Operating Cost | Q3 2024 | Q3 2023 |
|---|---|---|
| Food and Beverage Costs | $55,865,000 | $48,709,000 |
| Labor and Other Related Expenses | $83,756,000 | $73,137,000 |
| Occupancy Expenses | $21,075,000 | $17,555,000 |
Restaurant Level Operating Profit
The restaurant level operating profit for the thirteen weeks ended September 29, 2024 was $46.99 million, with a margin of 18.9%, compared to $40.37 million and a margin of 18.7% in the same period in 2023.
Debt and Liquidity
As of September 29, 2024, First Watch had cash and cash equivalents of $51.1 million and total debt of $197.5 million, with a principal balance of $98.75 million on a term facility.
| Debt Type | Amount | Interest Rate |
|---|---|---|
| Term Facility | $98,750,000 | 7.93% |
| Delayed Draw Term Facility | $96,281,000 | 7.90% |
| Revolving Credit Facility | $0 | N/A |
Growth Strategy
First Watch plans to continue expanding its restaurant footprint. As of September 29, 2024, the company had opened 9 new restaurants in 8 states during the third quarter, contributing to its total of 547 system-wide locations.
Market Trends and Challenges
In the broader restaurant industry, First Watch faces challenges such as commodity inflation, which was reported at 3.4% in Q3 2024. Labor costs are also rising, with wage inflation expected to be around 5.0% for the full year.
How First Watch Restaurant Group, Inc. (FWRG) Makes Money
Revenue Streams
First Watch Restaurant Group, Inc. generates revenue primarily through two main streams: restaurant sales and franchise revenues.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Restaurant Sales | $248,965 | $215,495 | 15.5% |
| Franchise Revenues | $2,644 | $3,717 | (28.9%) |
| Total Revenues | $251,609 | $219,212 | 14.8% |
Operating Performance
In the thirteen weeks ended September 29, 2024, First Watch's income from operations was $6,313,000 with an operating margin of 2.5%, down from 3.6% in the same period last year. This decline is attributed to increased costs and operational challenges.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income from Operations (in thousands) | $6,313 | $7,738 |
| Operating Margin | 2.5% | 3.6% |
Restaurant-Level Operating Profit
Restaurant-level operating profit for the third quarter of 2024 was $46,991,000, representing a margin of 18.9% compared to 18.7% in the previous year. The increase is due to favorable labor and food costs as a percentage of sales.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Restaurant-Level Operating Profit | $46,991 | $40,365 |
| Restaurant-Level Operating Profit Margin | 18.9% | 18.7% |
Adjusted EBITDA
Adjusted EBITDA for the third quarter of 2024 was $25,624,000, with an adjusted EBITDA margin of 10.2%, reflecting an increase from the prior year due to improved operational efficiencies.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Adjusted EBITDA | $25,624 | $21,629 |
| Adjusted EBITDA Margin | 10.2% | 9.9% |
Cost Structure
The company's operating costs include food and beverage costs, labor expenses, and occupancy costs. In Q3 2024, food and beverage costs were $55,865,000, accounting for 22.4% of restaurant sales. Labor costs were $83,756,000, representing 33.6% of restaurant sales.
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percentage of Restaurant Sales |
|---|---|---|---|
| Food and Beverage Costs | $55,865 | $48,709 | 22.4% |
| Labor and Other Related Expenses | $83,756 | $73,137 | 33.6% |
| Occupancy Expenses | $21,075 | $17,555 | 8.5% |
Franchise Operations
Franchise revenues are driven by royalty fees and contributions to system funds. In Q3 2024, franchise revenues totaled $2,644,000, a decline from the previous year primarily due to the acquisition of franchise-owned restaurants.
| Franchise Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Royalty and System Fund Contributions | $2,587 | $3,244 | (20.3%) |
| Initial Fees | $57 | $150 | (62.0%) |
| Total Franchise Revenues | $2,644 | $3,717 | (28.9%) |
Recent Developments
As of September 29, 2024, First Watch operated 547 restaurants, including 466 company-owned and 81 franchise-owned locations. The company opened 9 new restaurants in Q3 2024 and expects to continue its expansion strategy.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total System-Wide Restaurants | 547 | 538 |
| New Restaurants Opened | 9 | 7 |
Financial Position
As of September 29, 2024, First Watch reported cash and cash equivalents of $51.1 million and outstanding borrowings of $195.0 million under its Credit Facility. The company anticipates capital expenditures of approximately $130.0 million for 2024.
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $51,129 |
| Outstanding Borrowings | $195,000 |
| Estimated Capital Expenditures for 2024 | $130,000 |
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Resources:
- First Watch Restaurant Group, Inc. (FWRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Watch Restaurant Group, Inc. (FWRG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Watch Restaurant Group, Inc. (FWRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.