First Watch Restaurant | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 316.02 M

LB filings
2025.11.04 12:09
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Revenue: As of FY2025 Q3, the actual value is USD 316.02 M, beating the estimate of USD 309.57 M.

EPS: As of FY2025 Q3, the actual value is USD 0.05.

EBIT: As of FY2025 Q3, the actual value is USD 14.62 M.

Financial Metrics by Segment

Segment Revenue

  • Total Revenues: $316.0 million for the third quarter of 2025, up from $251.6 million in the third quarter of 2024.
  • Restaurant Sales: $313.6 million for the third quarter of 2025, up from $249.0 million in the third quarter of 2024.
  • Franchise Revenues: $2.4 million for the third quarter of 2025, down from $2.6 million in the third quarter of 2024.

Operational Metrics

  • Net Income: $3.0 million for the third quarter of 2025, up from $2.1 million in the third quarter of 2024.
  • Income from Operations: $10.1 million for the third quarter of 2025, up from $6.3 million in the third quarter of 2024.
  • Operating Margin: 3.2% for the third quarter of 2025, up from 2.5% in the third quarter of 2024.
  • Restaurant Level Operating Profit: $61.7 million for the third quarter of 2025, up from $47.0 million in the third quarter of 2024.
  • Restaurant Level Operating Profit Margin: 19.7% for the third quarter of 2025, up from 18.9% in the third quarter of 2024.
  • Adjusted EBITDA: $34.1 million for the third quarter of 2025, up from $25.6 million in the third quarter of 2024.
  • Adjusted EBITDA Margin: 10.8% for the third quarter of 2025, up from 10.2% in the third quarter of 2024.

Cash Flow

  • Net Cash Provided by Operating Activities: $107.5 million for the thirty-nine weeks ended September 28, 2025, up from $92.7 million for the same period in 2024.
  • Net Cash Used in Investing Activities: - $175.8 million for the thirty-nine weeks ended September 28, 2025, up from - $165.9 million for the same period in 2024.
  • Net Cash Provided by Financing Activities: $55.7 million for the thirty-nine weeks ended September 28, 2025, down from $74.3 million for the same period in 2024.

Unique Metrics

  • Same-Restaurant Sales Growth: 7.1% for the third quarter of 2025, compared to -1.9% for the third quarter of 2024.
  • Same-Restaurant Traffic Growth: 2.6% for the third quarter of 2025, compared to -4.4% for the third quarter of 2024.
  • System-Wide Sales: $352.7 million for the third quarter of 2025, up from $291.8 million in the third quarter of 2024.

Future Outlook and Strategy

Core Business Focus

  • New Restaurant Openings: Opened 21 system-wide restaurants in 14 states during the third quarter of 2025, resulting in a total of 620 system-wide restaurants (548 company-owned and 72 franchise-owned) across 32 states.
  • Commodity Inflation: Projected full-year commodity inflation to be approximately 6%.
  • Restaurant-Level Wage Inflation: Full-year inflation expected to be approximately 4%.

Non-Core Business

  • Franchise Acquisitions: Acquired 19 franchise-operated First Watch restaurants during the second quarter of 2025.

Priority

  • Capital Expenditures: Estimated to total approximately $150.0 million in 2025, primarily invested in new restaurant projects and planned remodels.
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