First Watch Restaurant Group, Inc. · NASDAQ:FWRG
First Watch Restaurant — Investor Presentation (August 2023)
30 slides from First Watch Restaurant's investor presentation, Aug 10, 2023
Slide 1: A Breakout Growth Story: 40 Years in the Making
® A B R E A K O U T G R O W T H S T O R Y 40 Y E A R S IN T HE M A K I N G INVESTOR PRESENTATION | NASDAQ: FWRG | AUGUST 10, 2023 Exhibit 99.1
Slide 2: Forward-Looking Statements
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, which are subject to known and unknown risks, uncertainties and other important factors that ma
Slide 3: If You Haven't Been to a First Watch, Consider This Your Wake-Up Call
• The disruptive leader defining the fast growing Daytime Dining category, boasting 40 years in operations • $2.0M AUV1 achieved in one 7½ hour daytime shift (7:00 AM - 2:30 PM) • More than 490 system-wide restaurants across 29 states and growing • Modest per person average under ~$16.50, making us
Slide 4: Slide 4
Slide 5: Served Breakfast Is...
® • Daypart that has consistently grown since 2019 • Daypart growth still in its early stages, with upside potential vs established lunch and dinner • Tremendous opportunity with a vast majority of breakfast occasions still occurring at home • High consumer appeal for breakfast all day • Compelling
Slide 6: The All Day Cafe Is Changing the Game
HEALTH & FRESHNESS EXPLORATION & CREATIVITY ENGAGING ENVIRONMENTS 1 2 3 THE ALL DAY CAFE IS CHANGING THE GAME AND BRINGING EXCITEMENT TO A GROWING DAYPART • Operating exclusively during daytime hours • Inspired, chef-driven menu • Legacy players have not evolved with consumer preferences & tastes •
Slide 7: First Watch Is the Leader
the size of the next 3 largest Daytime Dining competitors combined by number of restaurants* FIRST WATCH IS THE LEADER A PROVEN, WINNING DAYTIME DINING FORMULA FUELED BY FRESHNESS & INNOVATION FRESHNESS INNOVATION2X OVER • “Follow the Sun” approach • Fresh produce deliveries 3 - 4x a week • Seasonal
Slide 8: Growth & Performance
GROWTH & PERFORMANCE
Slide 9: Proven Ability to Consistently Drive Same-Restaurant Traffic
® • On-trend evolving menu ensures relevancy and newness • Great customer experiences drive frequency • Apply targeted marketing to increase awareness • Prior to 2020, modest average pricing of 2-3% annually to offset cost increases, with no price taken in 2021 PROVEN ABILITY TO CONSISTENTLY DRIVE S
Slide 10: Performance-Driven Portability, Rapid Growth with Clear Visibility to 2,200 Units
SYSTEM-WIDE RESTAURANT COUNT BY STATE AS OF Q2’23 ® PERFORMANCE-DRIVEN PORTABILITY, RAPID GROWTH WITH CLEAR VISIBILITY TO 2,200 UNITS FLORIDA 117 LOCATIONS $2.2M AUV TEXAS 59 LOCATIONS $2.1M AUV OHIO 38 LOCATIONS $2.1M AUV ARIZONA 30 LOCATIONS $2.1M AUV MISSOURI 23 LOCATIONS $2.3M AUV Proven portabi
Slide 11: Attractive New Unit Economics That Works Everywhere
(1) Representative of our target 3-year new units performance, which is comparable to the historical 3-year performance of our new restaurants. (2) Cash-on-Cash Return is defined as Restaurant Level Operating Profit (excluding gift card breakage and deferred rent expense (income) in the third year o
Slide 12: Exceeding the Long-Term Performance Targets Identified at the IPO
WE ARE EXCEEDING THE LONG- TERM PERFORMANCE TARGETS WE IDENTIFIED AT THE IPO Note: These are not projections; they are goals/targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of
Slide 13: First Watch Core Brand Pillars
First Watch Core Brand Pillars First Watch shares similar fundamental strengths that distinguish top consumer brands* *Solely for convenience, the trademarks, trade names, service marks and copyrights referred to herein are listed without the ©, ® and TM symbols, but such references are not intended
Slide 14: The Secret Ingredients to Our Success
THE SECRET INGREDIENTS TO OUR SUCCESS
Slide 15: Our Mission Is Simple: We Put Employees First
OUR MISSION IS SIMPLE. WE PUT • Single shift from 7 AM to 2:30 PM • No night shifts, ever • Investment in employees’ personal and professional growth WE PUT EMPLOYEES FIRST WHO IN TURN PUT GUESTS FIRST • Employees are empowered to make guests happy • Culture of service • Superior restaurant executio
Slide 16: One Shift, One Menu, One Focus Driving Operational Excellence
® • One menu all day • One sheduling shift allows GM to oversee the entire business • No shoulder periods - highly efficient One Shift, One Menu, One Focus Driving Operational Excellence Our unique single-shift operating model has allowed us to staff up and retain our most important asset: people 16
Slide 17: Comforting & Familiar Menu Meets Intrigue & Innovation
MINT MOCHA ICED COFFEE CARNITAS BREAKFAST BURRITO LONE STAR BRISKET HASH CAULI-RIZO BREAKFAST TACOS ® BLUEBERRY MUFFIN TOP GRIDDLE CAKES COMFORTING & FAMILIAR MENU MEETS INTRIGUE & INNOVATION • Familar forms with seasonal flavors • Early trend identification • Five seasonal menu changes a year WATER
Slide 18: We Follow the Sun and Care Where Our Food Comes From
® • Track record of establishing partnerships with the best makers, bakers and growers • Menu rotates every 10 weeks to reflect the season and ensure ongoing relevancy • Focus is on quality and freshness WE FOLLOW THE SUN AND CARE WHERE OUR FOOD COMES FROM 18
Slide 19: ...And We Keep Raising the Bar
...AND WE KEEP RAISING THE BAR ® MILLION DOLLAR BREAKFAST SANDWICH PURPLE HAZE 19
Slide 20: Shareables Create Add-On Opportunities
SHAREABLES CREATE ADD-ON OPPORTUNITIES 20® • Capitalizes on the social nature of breakfast / brunch meals • Generates incremental sales and opportunity to test pricing with menu mix as high as 9.2% of customers • 5.6% of customers purchased shareables Q2 2023 vs. 1.9% in 2017 • Shareables instead of
Slide 21: Crafted Cocktails (Really Good Mornings)
~88% of system rolled out Highly incremental and margin accretive to all other beverages including fresh juice Accounts for 6% of dine-in customers at serving restaurants Presents continued innovation opportunity No physical bar needed for alcohol roll-out Enhances the brunch occasion, cre
Slide 22: We Have a Lot of Demand and We Are Focused on Serving It
Opportunity to increase front of house efficiency and lower wait abandonment WAITLIST TECHNOLOGY ORDER / PAY AT TABLE Opportunity to decrease table time and meeting customers where they are KITCHEN DISPLAY Opportunity to reduce ticket times and points of friction, simplifies back of house SEAT OPTIM
Slide 23: Aided Awareness vs. Guest Satisfaction: The Growth Opportunity Is Clear
AIDED AWARENESS VS. GUEST SATISFACTION THE GROWTH OPPORTUNITY IS CLEAR Note: All figures are sourced from Technomic for the full 2022 year. Survey Question: On a Scale of 1 to 7 where 1 = “Not at all satisfied” and 7 = “Extremely satisfied”, how satisfied are you with each of the following restauran
Slide 24: Awards and Recognition
AWARDS AND RECOGNITION 2022 Culture at Work Award 24 2023 Customer Experience All-Star2022 Top 100 Most Loved Workplace 2023 Most Loved Brands, #1 Restaurant, #4 Overall 2019 & 2020 Best People Practices Finalist 2018 Best Places to work 2020 America’s Favorite Restaurant Brand
Slide 25: = = = E a = ira
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Slide 26: Historical Data
26 HISTORICAL DATA ** Pre-opening expenses are presented in one line item on the Consolidated Statements of Operations and Comprehensive Income (Loss) Same-Restaurant Sales & Traffic Growth Pre-opening Expenses ** Q1 Q2 YTD Q2 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Same-Restaurant Sales Growth 12.9% 7.8% 10.
Slide 27: Adjusted EBITDA and Adjusted EBITDA Margin
27 Adjusted EBITDA and Adjusted EBITDA margin Management uses Adjusted EBITDA and Adjusted EBITDA margin (i) as factors in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the Company’s operating results and the effectiveness of our business strategies, (
Slide 28: Restaurant Level Operating Profit and Margin
28 Restaurant level operating profit and Restaurant level operating profit margin Restaurant level operating profit and Restaurant level operating profit margin are not indicative of our overall results, and because they exclude corporate-level expenses, do not accrue directly to the benefit of our
Slide 29: Definitions
29 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 of its on
Slide 30: Investor Relations Contact
® STEVEN L. MAROTTA Vice President, Investor Relations 941-500-1918 INVESTORS@FIRSTWATCH.COM
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