BRADENTON, Fla. - First Watch Restaurant Group (LON:RTN), Inc. (NASDAQ: FWRG), a prominent Daytime Dining restaurant chain with a market capitalization of $1.16 billion, announced its operational metrics for the fourth quarter and the fiscal year ended December 29, 2024. According to InvestingPro data, the company has demonstrated strong momentum with a 19.72% price return over the past six months, despite trading above its Fair Value. The company achieved its goal of opening 25 new restaurants during the fourth quarter, including 23 company-owned locations. In addition, First Watch reported same-restaurant sales and traffic growth at the upper end of their anticipated range for the quarter.
The fourth quarter of 2024 saw a slight decrease in same-restaurant sales growth of 0.3% and a 3.0% decline in same-restaurant traffic growth. These figures compare the thirteen-week periods ending December 29, 2024, and December 31, 2023. Despite these quarterly results, the company maintains robust overall growth, with revenue increasing by 19.77% over the last twelve months to nearly $1 billion.
First Watch's expansion included 50 new system-wide restaurant openings throughout 2024, with 43 being company-owned and 7 franchise-owned, alongside two closures. As of December 29, 2024, the company operates a total of 572 system-wide restaurants across 29 states. The network comprises 489 company-owned and 83 franchise-owned restaurants.
CEO and President Chris Tomasso expressed his intention to continue the growth trajectory into 2025, leveraging a robust real estate pipeline and a committed team to enhance the company's leading position in the Daytime Dining category. InvestingPro analysis reveals several key insights about the company's financial health, with 8 additional ProTips available to subscribers, including detailed analysis of the company's growth prospects and financial position.
The leadership of First Watch is scheduled to participate in an upcoming conference. Tomasso, along with Chief Financial Officer Mel Hope, will host a fireside chat at the 27th Annual ICR Conference on Tuesday. Additionally, they will engage with institutional investors at the Jefferies Restaurants, Foodservice, Gaming, Lodging and Leisure Summit later in January.
First Watch is known for its made-to-order breakfast, brunch, and lunch offerings, utilizing fresh ingredients. The chain has received numerous accolades, including being named the #1 Most Loved Workplace® in America by Newsweek and the Best Practice Institute for 2024. With analyst price targets ranging from $18 to $27 and an EBITDA of $99.71 million, investors can access comprehensive analysis and valuation metrics through InvestingPro's detailed research reports, available for over 1,400 US stocks.
This article is based on a press release statement from First Watch Restaurant Group, Inc.
In other recent news, First Watch Restaurant Group reported notable growth amid market challenges, with system-wide sales of $291.8 million and total revenues of $251.6 million, marking a 14.8% increase from the previous year. Despite a 4.4% drop in same-restaurant traffic, the company opened 44 new restaurants, contributing to the revenue growth. Piper Sandler has maintained confidence in First Watch, maintaining an Overweight rating and increasing the price target to $23.00 from $22.00.
The company has also announced a secondary stock offering of 8 million shares at $19.95 per share, managed by Advent International. Goldman Sachs & Co. LLC, the underwriter, retains the option to purchase an additional 1.2 million shares within 30 days. Investors will be closely watching First Watch's future performance, particularly its ability to sustain and build upon its unit growth while improving customer traffic.
These are all recent developments that highlight the company's strategic moves amid a challenging market landscape. As First Watch continues to navigate through these challenges, it plans to open 23 new locations in the fourth quarter and has adjusted its 2024 earnings guidance, raising the lower end of the forecast range.
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