BRADENTON, Fla. - First Watch Restaurant Group, Inc. (NASDAQ:FWRG) shares rose 2.16% in premarket trading following the company's fourth-quarter revenue beat. The leading Daytime Dining restaurant chain reported earnings per share (EPS) of $0.04 for Q4 2023, aligning with analyst expectations.
However, revenue outperformed analyst projections, coming in at $244.6 million against the consensus estimate of $237.39 million, a significant increase from the $185.7 million reported in the same quarter last year.
The company's total revenue for the quarter marked a substantial 31.7% increase compared to Q4 2022, primarily driven by a 5.0% growth in same-restaurant sales, largely attributed to menu price increases and a favorable mix.
Despite a slight decline in same-restaurant traffic of 1.3%, the company's system-wide sales saw a 26.6% increase to $296.5 million. Net income for the quarter stood at $2.6 million, a notable improvement from a net loss of $0.5 million in the previous year's fourth quarter.
First Watch's CEO, Chris Tomasso, expressed optimism about the company's growth potential, citing the untapped market in the Daytime Dining segment and the company's operational focus. The company also celebrated the opening of its 500th restaurant and reported a 7.6% same-restaurant sales growth for the fiscal year.
Looking ahead, First Watch provided its fiscal year 2024 outlook, anticipating same-restaurant sales growth between 1.0% to 3.0% and a total revenue growth range of 18.0% to 20.0%. The midpoint of the adjusted EBITDA guidance range is $109 million, which is a figure to watch as the company did not provide a comparison to analyst consensus.
The company plans to open 51 to 57 new system-wide restaurants and expects capital expenditures to be between $125.0 million and $135.0 million, primarily for new restaurant projects and remodels.
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