First Watch (FWRG) Q3 Earnings: What To Expect

Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) will be reporting results tomorrow before market open. Here’s what investors should know.

First Watch met analysts’ revenue expectations last quarter, reporting revenues of $258.6 million, up 19.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA and earnings estimates.

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

This quarter, analysts are expecting First Watch’s revenue to grow 17.1% year on year to $256.6 million, in line with the 17.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 9 analysts). First Watch has missed Wall Street’s revenue estimates twice over the last two years.

Looking at First Watch’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 12.5%, beating analysts’ expectations by 3.4%, and The Cheesecake Factory reported revenues up 4.2%, in line with consensus estimates. Brinker International traded up 5.6% following the results while The Cheesecake Factory was also up 8.8%.

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

There has been positive sentiment among investors in the sit-down dining segment, with share prices up 6.8% on average over the last month. First Watch is up 26.5% during the same time and is heading into earnings with an average analyst price target of $20.70 (compared to the current share price of $17).

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