First Watch (FWRG) Reports Earnings Tomorrow: What To Expect

Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.

First Watch met analysts’ revenue expectations last quarter, reporting revenues of $331 million, up 17.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.

Is First Watch a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting First Watch’s revenue to grow 14.1% year on year, slowing from the 19.1% 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 will 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 Q2 results, giving us a hint as to what we can expect. The Cheesecake Factory delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 2.9%, and BJ's reported revenues up 6.4%, topping estimates by 3.2%. The Cheesecake Factory traded up 13.6% following the results while BJ's was down 9%.

Read our full analysis of The Cheesecake Factory’s results here and BJ’s results here.

Investors in the sit-down dining segment have had steady hands going into earnings, with share prices up 1.5% on average 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 $19.45 (compared to the current share price of $12.85).

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