Overview

• US daytime dining chain's Q1 revenue rose 17%, slightly beating analyst expectations

• Adjusted EBITDA for Q1 beat analyst estimates, rising to $27.8 mln

• Company opened 16 new restaurants and reaffirmed full-year revenue outlook

Outlook

• First Watch sees 2026 adjusted EBITDA of $133 mln to $140 mln

• Company expects 2026 same-restaurant sales growth of 1% to 3%

• First Watch projects 2026 total revenue growth of 12% to 14%

Result Drivers

• NEW RESTAURANT OPENINGS - Co said 16 new system-wide restaurants opened in 11 states contributed to revenue growth

• SAME-RESTAURANT SALES - Same-restaurant sales grew 2.8%, though same-restaurant traffic declined 2.0%

• OPERATING PROFIT MARGIN - Restaurant-level operating profit margin increased to 18.5% from 16.5% a year ago

Company press release: ID:nGNXbJfnVg

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$330.96 mln	$329.64 mln (11 Analysts)
Q1 Adjusted EBITDA	Beat	$27.80 mln	$25.43 mln (11 Analysts)
Q1 Adjusted EBITDA Margin		8.40%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for First Watch Restaurant Group Inc is $19.50, about 59.7% above its May 4 closing price of $12.21

• The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 48 three months ago

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