First Watch Restaurant Group, Inc. · NASDAQ:FWRG
First Watch Restaurant — Q2 2023 Earnings Presentation
19 slides from First Watch Restaurant's earnings presentation, Aug 1, 2023
Slide 1: Welcome to First Watch
Welcome to First Watch Supplemental Information Q2 2023 August 1, 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 culinary-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-t
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Slide 5: Performance and Commentary
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Slide 6: CEO commentary on same-restaurant sales growth
“Our teams across the system once again delivered strong results with same-restaurant sales growth of 7.8% driven by positive same-restaurant traffic growth in our dining rooms. This continued topline growth also translated to strong bottom- line performance. As we progress toward our potential of 2
Slide 7: A Taste of Q1 & Q2
A TASTE OF Q1 & Q2 Spring Seasonal Menu | March 20 – May 28 TACOS AL PASTOR HASH CRAB & AVOCADO TOAST BANANAS FOSTER TROPICAL SUNRISE FRENCH TOAST Crispy pork al pastor, fresh Mango, pineapple, strawberry pineapple and seasoned potatoes Wild-caught lump crab and fresh Thick-cut, custard-dipped chall
Slide 8: A Taste of Q2 & Q3
A TASTE OF Q2 & Q3 Summer Seasonal Menu | Jun. 5 – Aug 13 Strawberry Tres Leches Carnitas Breakfast Lone Star Brisket Hash Watermelon Wake-Up French Toast Tostadas Thick-cut, custard-dipped challah Smoked, hand-pulled brisket and Watermelon, pineapple, lime bread griddled and topped with Savory hand
Slide 9: Q2 2023 Highlights
Q2 2023 HIGHLIGHTS Highlights for Q2 2023 compared to Q2 2022*: • Total revenues increased 17.3% to $216.3 million in Q2 2023 from $184.5 million in Q2 2022 • System-wide sales increased 17.4% to $271.5 million in Q2 2023 from $231.2 million in Q2 2022 • Same-restaurant sales growth of 7.8% (39.6% r
Slide 10: Outlook
OUTLOOK Outlook for Fiscal Year 2023: The Company updates certain of its guidance for the 53-week fiscal year ended December 31, 2023: • Total revenue growth in the range of 18.0% to 21.0%(1) • Adjusted EBITDA* in the range of $89.0 million to $92.0 million(1) • Blended tax rate in the range of 28.0
Slide 11: Consolidated Statements of Operations
Consolidated Statements of Operations The following table summarizes our results of operations and the percentages of items in our Consolidated Statements of Operations in relation to Total revenues or, where indicated, Restaurant sales for fiscal years 2020, 2021, 2022 and the first and second quar
Slide 12: Selected Operating Data
Selected Operating Data THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED FISCAL YEAR June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 2022 2021 2020 System-wide sales (in thousands) $271,546 $231,236 $536,265 $445,357 $914,816 $750,674 $426,303 System-wide restaurants 492 449 492 449 474 435 409 C
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Slide 14: 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 15: Historical Data
HISTORICAL DATA Same-Restaurant Sales & Traffic Growth 2023 2022 2021 Q1 Q2 YTD Q2 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Same-Restaurant Sales Growth 12.9% 7.8% 10.4% 27.2% 13.4% 12.0% 7.7% 14.5% 14.1% 403.5% 46.2% 36.7% 63.0% Same-Restaurant Traffic Growth (Decline) 5.1% (1.2%) 1.9% 21.9% 8.1% 3.7% (0.6%)
Slide 16: Non-GAAP Financial Measures: Adjusted EBITDA
NON-GAAP FINANCIAL MEASURES Adjusted EBITDA and Adjusted EBITDA margin THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED FISCAL YEAR (in thousands) June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 2022 2021 2020 Management uses Adjusted EBITDA and Adjusted EBITDA Net income (loss) $7,959 $2,707 $17
Slide 17: Non-GAAP Financial Measures: Restaurant Level Operating Profit
NON-GAAP FINANCIAL MEASURES Restaurant level operating profit and Restaurant level operating profit margin THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED FISCAL YEAR (in thousands) June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 2022 2021 2020 Restaurant level operating profit and Restaurant le
Slide 18: 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 19: For more information, visit investors.firstwatch.com
For more information, visit investors.firstwatch.com or email investors@firstwatch.com
First Watch Restaurant Group — Q2 2023 Earnings Presentation on 6ix