First Watch (FWRG) To Report Earnings Tomorrow: Here Is What To Expect

Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) will be announcing earnings results this Tuesday morning. Here’s what you need to know.

First Watch beat analysts’ revenue expectations last quarter, reporting revenues of $316 million, up 25.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EBITDA estimates.

This quarter, the market is expecting First Watch’s revenue to grow 20.1% year on year, improving from the 7.6% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Watch has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at First Watch’s peers in the sit-down dining segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 6.9%, beating analysts’ expectations by 2.9%, and Texas Roadhouse reported revenues up 3.1%, falling short of estimates by 0.8%. Brinker International traded up 2.1% following the results while Texas Roadhouse was down 2%.

Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat over the last month. First Watch’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $22.18 (compared to the current share price of $15.94).