First Watch Q4 revenue slightly misses analyst expectations

Reuters
Feb 24
First Watch Q4 revenue slightly misses analyst expectations

Overview

  • Daytime dining concept's Q4 revenue slightly missed analyst expectations

  • Adjusted EBITDA for Q4 missed analyst estimates

  • Company opened 13 new restaurants across 11 states in Q4

Outlook

  • First Watch expects same-restaurant sales growth between 1% to 3% in fiscal year 2026

  • Company forecasts total revenue growth of 12%-14% for 2026

  • First Watch plans to open 59 to 63 new system-wide restaurants in 2026

Result Drivers

  • NEW RESTAURANT OPENINGS - Opened 13 system-wide restaurants across 11 states, contributing to revenue growth

  • SAME-RESTAURANT SALES - Achieved same-restaurant sales growth of 3.1% in Q4 2025, despite a decline in traffic

  • DIGITAL MARKETING EXPANSION - Co plans to leverage its evolving digital marketing platform for future growth

Company press release: ID:nGNXbDDw6l

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Slight Miss*

$316.35 mln

$316.93 mln (11 Analysts)

Q4 Net Income

$15.16 mln

Q4 Adjusted EBITDA

Miss

$33.69 mln

$34.29 mln (11 Analysts)

Q4 Adjusted EBITDA Margin

10.60%

Q4 EBITDA

$29.87 mln

*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 10 "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 $22.00, about 41.9% above its February 23 closing price of $15.50

  • The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 50 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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