First Watch Restaurant Group, Inc. · NASDAQ:FWRG
First Watch Restaurant — Q4 2022 Earnings Presentation
22 slides from First Watch Restaurant's earnings presentation, Mar 7, 2023
Slide 1: Welcome to First Watch
Welcome to First Watch Supplemental Information Q4 and Fiscal 2022 March 7, 2023
Slide 2: Cautionary Note on Forward-Looking Statements and Non-GAAP Financial Measures
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES Forward-Looking Statements In addition to historical information, this presentation may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking s
Slide 3: Good Morning! We are First Watch.
GOOD MORNING! We are First Watch. We’re the leaders of the Daytime Dining category – a segment comprised of chef-driven concepts operating exclusively during daytime hours. That’s right… Our performance and successes are achieved during one 7½- hour shift, from 7 a.m. to 2:30 p.m. We serve made-to-o
Slide 4: Slide 4
Slide 5: Fiscal 2022 Performance and Commentary
Fiscal 2022 Performance and Commentary
Slide 6: CEO commentary on 2022 results and 2023 start
“First Watch delivered another impressive year in 2022, achieving a 21.5% increase in total revenues and same-restaurant sales and traffic growth of 14.5% and 7.7%, respectively, when compared to a strong 2021.” “We’re off to an encouraging start to 2023, with same-restaurant sales and traffic growt
Slide 7: A Taste of 2022: Jump Start Seasonal Menu
A TASTE OF 2022 Jump Start Seasonal Menu | Jan. 3 – March 13 THE TRAILBLAZER BOWL CARNITAS BREAKFAST BURRITO SUPERSEED PROTEIN PANCAKES PURPLE HAZE Hand-pulled roasted turkey, house- Pork carnitas, cage-free scrambled Flax, hemp, kasha, pepitas and Lemon, cane sugar, butterfly pea roasted sweet pota
Slide 8: A Taste of 2022: Spring Seasonal Menu
A TASTE OF 2022 Spring Seasonal Menu | March 21 – May 29 SHRIMP & GRITS CRAB CAKE BENEDICT CHORIZO SUNRISE SANDWICH PINEAPPLE EXPRESS Our take on this Lowcountry classic Crispy crab cakes topped with two A cage-free over-easy egg with two Pineapple, orange, coconut water, features sautéed shrimp and
Slide 9: A Taste of 2022: Summer Seasonal Menu
A TASTE OF 2022 Summer Seasonal Menu | June 6 – Aug. 14 BARBACOA QUESADILLA HACIENDA HASH BLUEBERRY MUFFIN TOP WATERMELON WAKE-UP BENEDICT Chorizo, red bell pepper and potato GRIDDLE CAKES Watermelon, pineapple, lime and hash topped with two cage-free eggs Three house-baked, butter-griddled mint. Tw
Slide 10: A Taste of 2022: Fall Seasonal Menu
A TASTE OF 2022 Fall Seasonal Menu | Aug. 22 – Oct. 30 CARAMEL CRUNCH BRISKET CORNED PUMPKIN PANCAKE POMAGRANATE PEAR MODERN CROQUE MADAME BEEF HASH CINNAMON ROLL BREAKFAST PUNCH Challah bread griddled with A giant cinnamon roll topped with melted Cheddar and Monterey Savory hand-pulled corned beef,
Slide 11: A Taste of 2022: Holiday Seasonal Menu
A TASTE OF 2022 Holiday Seasonal Menu | Oct. 31 – Jan. 1 GINGERBREAD SPICE CINNAMON CHIP PANCAKE BARBACOA BREAKFAST PORK GREEN CHILE HASH CRANBERRY CRUSH DONUTS BREAKFAST BURRITO Savory braised beef Barbacoa, Hand-shredded pork shoulder tossed Warm cake donut holes tossed Two cage-free eggs cooked a
Slide 12: Q4 2022 & Fiscal 2022 Highlights
Q4 2022 & Fiscal 2022 HIGHLIGHTS Highlights for Q4 2022 compared to Q4 2021: • Total revenues increased 14.2% to $185.7 million in Q4 2022 from $162.6 million in Q4 2021 • System-wide sales increased 15.6% to $234.2 million in Q4 2022 from $202.7 million in Q4 2021 • Same-restaurant sales growth of
Slide 13: Outlook
OUTLOOK Outlook for Fiscal Year 2023: The Company provides the following outlook for the 53-week fiscal year ended December 31, 2023: • Same-restaurant sales growth of 6.0% to 8.0% with continued positive same-restaurant traffic growth • Total revenue growth of 15.0% to 19.0% • Adjusted EBITDA* in t
Slide 14: Consolidated Statements of Operations and Comprehensive Income (Loss)
Consolidated Statements of Operations and Comprehensive Income (Loss) The following table summarizes our results of operations and the percentages of items in our Consolidated Statements of Operations and Comprehensive Income (Loss) in relation to Total revenues or, where indicated, Restaurant sales
Slide 15: Selected Operating Data
Selected Operating Data THIRTEEN WEEKS ENDED FISCAL YEAR December 25, 2022 December 26, 2021 2022 2021 2020 System-wide sales (in thousands) $234,228 $202,669 $914,816 $750,674 $426,303 System-wide restaurants 474 435 474 435 409 Company-owned 366 341 366 341 321 Franchise-owned 108 94 108 94 88 Sam
Slide 16: Appendix
APPENDIX = = = = = wn 4 nu
Slide 17: Attractive New Unit Economics in a Size That Works Everywhere
ATTRACTIVE NEW UNIT ECONOMICS IN A SIZE THAT WORKS EVERYWHERE $2.5M 18-20% 35%+ (1) (1) (1) Our flexible box size of ~3,000–6,600 square feet with an average net build-out cost of ~$0.9M-$1.4M allows us to fit in any real estate and we can succeed in many YEAR 3 YEAR 3 YEAR 3 markets SALES RESTAURAN
Slide 18: Historical Data
HISTORICAL DATA Same-Restaurant Sales & Traffic Growth 2019 2020 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Same-Restaurant Sales Growth 6.3% 6.2% 5.1% 4.6% 5.6% (10.7%) (75.9%) (17.2%) (11.3%) (29.0%) 14.1% 403.5% 46.2% 36.7% 63.0% 27.2% 13.4% 12.0% 7.7% 14.5% Same-Restau
Slide 19: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Adjusted EBITDA and Adjusted EBITDA margin THIRTEEN WEEKS ENDED FISCAL YEAR (in thousands) December 25, 2022 December 26, 2021 2022 2021 2020 Management uses Adjusted EBITDA and Adjusted EBITDA Net income (loss) ($486) ($4,653) $6,907 ($2,107) ($49,681) margin (i) as fact
Slide 20: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Restaurant level operating profit and THIRTEEN WEEKS ENDED FISCAL YEAR Restaurant level operating profit margin (in thousands) December 25, 2022 December 26, 2021 2021 2021 2020 Income (Loss) from operations $1,479 ($1,067) $16,913 $22,243 ($47,222) Restaurant level opera
Slide 21: Definitions
DEFINITIONS The following definitions apply to these terms as used in this presentation: Adjusted EBITDA: a non-GAAP financial measure, is defined as net income (loss) before depreciation and amortization, interest expense, income taxes and items that the Company does not consider in the evaluation
Slide 22: For more information, visit investors.firstwatch.com
For more information, visit investors.firstwatch.com or email investors@firstwatch.com
First Watch Restaurant Group — Q4 2022 Earnings Presentation on 6ix