Latest news with #ChrisTomasso
Yahoo
09-05-2025
- Business
- Yahoo
FWRG Q1 Earnings Call: Margin Pressures Offset Traffic Improvements and Expansion
Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) met Wall Street's revenue expectations in Q1 CY2025, with sales up 16.4% year on year to $282.2 million. Its non-GAAP profit of $0.01 per share was $0.03 below analysts' consensus estimates. Is now the time to buy FWRG? Find out in our full research report (it's free). Revenue: $282.2 million vs analyst estimates of $283.5 million (16.4% year-on-year growth, in line) Adjusted EPS: $0.01 vs analyst estimates of $0.03 ($0.03 miss) Adjusted EBITDA: $22.75 million vs analyst estimates of $25.81 million (8.1% margin, 11.9% miss) EBITDA guidance for the full year is $116.5 million at the midpoint, below analyst estimates of $125.2 million Operating Margin: 0.4%, down from 5.1% in the same quarter last year Free Cash Flow was -$16.42 million compared to -$3.6 million in the same quarter last year Locations: 584 at quarter end, up from 531 in the same quarter last year Same-Store Sales were flat year on year, in line with the same quarter last year Market Capitalization: $975.3 million First Watch's first quarter results reflected a mix of steady top-line growth and mounting cost pressures. Management attributed revenue gains to positive traffic trends in key periods, continued expansion into new markets with 13 restaurant openings, and targeted marketing campaigns that improved customer engagement. CEO Chris Tomasso cited sequential improvements in restaurant traffic, particularly in March and April, as well as operational investments that drove further efficiency and lower employee turnover. Looking ahead, management signaled that persistent inflation in core food commodities and higher labor and benefit costs will weigh on margins throughout the year. CFO Mel Hope flagged that four of the company's top five commodities are experiencing high inflation, and that new tariffs and selective customer-facing initiatives are expected to continue pressuring profitability. Despite these headwinds, Tomasso emphasized the company's confidence in its unit growth strategy and its ongoing marketing efforts to support traffic, while acknowledging that margin recovery will depend on relief from commodity costs and careful cost management. Management's remarks outlined several operational and market factors that shaped the quarter's results, highlighting the interplay between growth initiatives and profit headwinds. Traffic Trend Recovery: Sequential improvements in restaurant traffic, with April achieving the best monthly result in over two years, supported optimism for sustained traffic growth in upcoming quarters. Marketing and Customer Engagement: Enhanced digital and targeted marketing campaigns, initiated in March, led to stronger brand awareness and customer frequency, particularly in select geographies. These efforts are expected to scale further in 2025. Third-Party Delivery Optimization: Strategic changes with delivery partners resulted in a reversal of negative traffic trends in that channel, though at lower per-order margins. Commodity and Labor Cost Pressures: Higher costs in eggs, bacon, coffee, and avocados, as well as increased health benefits and labor, drove margin compression. Management cited these as largely transitory but significant in the current environment. Expansion into New Markets: Openings in new states, such as Massachusetts and Idaho, demonstrated the brand's geographic portability and provided evidence for management's long-term growth target of over 2,200 U.S. locations. Management's outlook for the remainder of 2025 focuses on driving top-line growth through new restaurant openings and marketing, while navigating cost inflation and macro uncertainty. Inflation and Tariff Impact: Ongoing high-single-digit inflation in key commodities and new tariffs are expected to pressure margins, with peak cost impact anticipated in the second quarter before some relief later in the year. Growth Through New Units: Continued double-digit percentage growth in restaurant openings, especially in untapped markets, is viewed as the primary engine for revenue expansion. Customer-Facing Initiatives: Programs like 'surprise and delight' and increased portion sizes are intended to build loyalty and frequency, but may continue to affect short-term profitability if not carefully managed. Andrew Charles (TD Cowen): Asked about the sustainability of positive traffic trends and the trade-offs between driving traffic at lower margins; management expressed confidence in the approach, citing encouraging recent results. Jim Salera (Stephens Inc.): Inquired about learnings from increased media spend and engagement; leadership noted early positive impacts and ongoing adjustments to optimize effectiveness across markets. Sara Senatore (BofA): Sought clarity on planned restaurant closures and the margin impact of customer loyalty programs; management described closures as routine and emphasized the long-term value of loyalty investments despite near-term cost pressures. Brian Mullan (Piper Sandler): Asked for updates on menu innovation and beverage expansion; management confirmed continued testing of new beverage options to drive incremental sales. Gregory Francfort (Guggenheim Securities): Queried long-term margin targets and third-party delivery dynamics; management reiterated a restaurant-level margin target of 18-20% and discussed partnership benefits in off-premise channels. In the coming quarters, the StockStory team will track (1) whether traffic trends remain positive in both dine-in and delivery channels, (2) if commodity and labor cost inflation begin to ease as anticipated in the second half of the year, and (3) the success of new market entries and continued restaurant expansion. The effectiveness of marketing initiatives in driving repeat visits and the impact of loyalty programs on customer retention will also be important indicators of progress. First Watch currently trades at a forward P/E ratio of 40.8×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
First Watch's (NASDAQ:FWRG) Q1 Earnings Results: Revenue In Line With Expectations But Stock Drops
Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) met Wall Street's revenue expectations in Q1 CY2025, with sales up 16.4% year on year to $282.2 million. Its GAAP loss of $0.01 per share was significantly below analysts' consensus estimates. Is now the time to buy First Watch? Find out in our full research report. First Watch (FWRG) Q1 CY2025 Highlights: Revenue: $282.2 million vs analyst estimates of $283.5 million (16.4% year-on-year growth, in line) EPS (GAAP): -$0.01 vs analyst estimates of $0.03 (significant miss) Adjusted EBITDA: $22.75 million vs analyst estimates of $25.81 million (8.1% margin, 11.9% miss) EBITDA guidance for the full year is $116.5 million at the midpoint, below analyst estimates of $125 million Operating Margin: 0.4%, down from 5.1% in the same quarter last year Locations: 584 at quarter end, up from 531 in the same quarter last year Same-Store Sales were flat year on year, in line with the same quarter last year Market Capitalization: $1.13 billion "First quarter same restaurant traffic results are encouraging and continued the trends we experienced exiting 2024, demonstrating both the strength and the resilience of the First Watch brand,' said Chris Tomasso, CEO and President of First Watch. Company Overview Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $1.06 billion in revenue over the past 12 months, First Watch is a mid-sized restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, First Watch grew its sales at an exceptional 19.2% compounded annual growth rate over the last five years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new restaurants and increased sales at existing, established dining locations. First Watch Quarterly Revenue This quarter, First Watch's year-on-year revenue growth was 16.4%, and its $282.2 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 20% over the next 12 months, similar to its five-year rate. This projection is admirable and suggests the market is baking in success for its menu offerings.
Business Upturn
23-04-2025
- Business
- Business Upturn
First Watch Announces Flagship Location in Heart of Downtown Boston
BOSTON, April 23, 2025 (GLOBE NEWSWIRE) — First Watch Restaurant Group, Inc. (NASDAQ: FWRG) ('First Watch' or the 'Company'), the leading daytime restaurant serving breakfast, brunch and lunch, announced it will open its first downtown Boston location in late 2025, marking First Watch's continued expansion in New England. The popular breakfast spot celebrated its entry into Massachusetts earlier this year with the opening of its first greater Boston-area location in Hanover in January. The new restaurant will be located at 777 Boylston St. in the iconic Back Bay neighborhood, bringing First Watch's fresh, chef-driven menu to the heart of the city. 'This high-profile location in the heart of Boston is a major milestone as we continue our growth in New England and beyond,' said Chris Tomasso, First Watch CEO & President. 'We're grateful for the warm welcome we received for our first Massachusetts location earlier this year and look forward to bringing First Watch's innovative menu and signature hospitality to the Back Bay.' First Watch is widely beloved for its modern take on breakfast and brunch classics showcasing high quality ingredients like cage-free eggs, organic mixed greens, all-natural chicken and fresh – never frozen – breakfast potatoes. All dishes are made to order using fresh ingredients in a kitchen without heat lamps, microwaves or deep fryers, and its seasonal menu rotates five times per year. The diverse menu offers classics, such as The Traditional breakfast, benedicts, omelets and Avocado Toast, as well as curated hashes and bowls, including fan favorites like Farmhouse Hash and Pesto Chicken Quinoa Bowl, plus Instagrammable shareables, like Million Dollar Bacon. The restaurant also offers a robust lunch menu of sandwiches and salads, including Superfood Kale Salad, the Ham and Gruyere Melt and its popular 'Two for You' lunch combination. The Boylston team will start each morning by juicing fresh fruits and vegetables like kale, apple and cucumber for an array of juices, including Morning Meditation and Kale Tonic. The restaurant also takes immense pride in its socially responsible Project Sunrise coffee, sourced from women-owned coffee farms based in South America. The Boylston flagship location design will represent the community it serves and complement the surrounding historic district, including a one-of-a-kind, Boston-inspired mural specially designed and painted by a local artist. The restaurant will also feature a welcoming outdoor dining patio. The weekend prior to opening, the restaurant will raise money to support Dana-Farber Cancer Institute and the Jimmy Fund's mission to defy cancer – a continuation of the partnership started at Hanover earlier this year. The Boston opening will create approximately 30 new jobs for the local community. Recently recognized as the '#1 Most Loved Workplace in America' by Newsweek and the Best Practice Institute, First Watch prides itself on its 'No Night Shifts Ever' policy, which prioritizes employee wellbeing, allowing all staff to enjoy their evenings off. Open positions will be posted to First Watch's Careers site this Fall. First Watch is open seven days a week, 7 a.m. to 2:30 p.m. For more information, visit , and connect on Instagram and Facebook with @FirstWatch. About First Watch First Watch is the leading Daytime Dining concept serving made-to-order breakfast, brunch and lunch using fresh ingredients. A recipient of hundreds of local 'Best Breakfast' and 'Best Brunch' accolades, First Watch's chef-driven menu rotates five times a year and includes elevated executions of classic favorites alongside specialties such as its Quinoa Power Bowl, Lemon Ricotta Pancakes, Chickichanga, Morning Meditation fresh juice and signature Million Dollar Bacon. After first appearing on the list in 2022 and 2023, First Watch was named 2024's #1 Most Loved Workplace® in America by Newsweek and the Best Practice Institute. In 2023, First Watch was named the top restaurant brand in Yelp's inaugural list of the top 50 most-loved brands in the U.S. In 2022, First Watch was awarded a sought-after MenuMasters honor by Nation's Restaurant News for its seasonal Braised Short Rib Omelet. First Watch operates more than 570 First Watch restaurants in 30 states. For more information, visit . Media Contact: [email protected] A photo accompanying this announcement is available at Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
Yahoo
31-03-2025
- Business
- Yahoo
Q4 Earnings Roundup: First Watch (NASDAQ:FWRG) And The Rest Of The Sit-Down Dining Segment
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let's have a look at First Watch (NASDAQ:FWRG) and its peers. Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants. The 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 0.9% while next quarter's revenue guidance was 2.4% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.1% since the latest earnings results. Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes. First Watch reported revenues of $263.3 million, up 7.6% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. '2024 was a pivotal year as we surpassed $1 billion in total revenues and $100 million in adjusted EBITDA for the first time. These milestones were supported and augmented by our teams' operational acuity, successfully enhancing a variety of critical KPIs including labor efficiency, ticket times and customer experience scores, among others,' said Chris Tomasso, First Watch CEO and President. The stock is down 7.5% since reporting and currently trades at $16.74. Is now the time to buy First Watch? Access our full analysis of the earnings results here, it's free. Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili's, Maggiano's Little Italy, and It's Just Wings banners. Brinker International reported revenues of $1.36 billion, up 26.5% year on year, outperforming analysts' expectations by 9.6%. The business had an incredible quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Brinker International pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.1% since reporting. It currently trades at $145.20. Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it's free. Owner of the iconic Australian-themed Outback Steakhouse, Bloomin' Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands. Bloomin' Brands reported revenues of $972 million, down 18.6% year on year, falling short of analysts' expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts' expectations. Bloomin' Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 38.2% since the results and currently trades at $7.35. Read our full analysis of Bloomin' Brands's results here. Open around the clock, Denny's (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare. Denny's reported revenues of $114.7 million, flat year on year. This number missed analysts' expectations by 1.2%. Overall, it was a softer quarter as it also recorded full-year EBITDA guidance missing analysts' expectations. The stock is down 43.2% since reporting and currently trades at $3.82. Read our full, actionable report on Denny's here, it's free. Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill. The ONE Group reported revenues of $221.9 million, up 147% year on year. This result beat analysts' expectations by 1.9%. Aside from that, it was a slower quarter as it produced a significant miss of analysts' EPS estimates. The ONE Group achieved the fastest revenue growth among its peers. The stock is up 3.1% since reporting and currently trades at $2.99. Read our full, actionable report on The ONE Group here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. 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