First Watch Restaurant : Q12026 IR Site Deck FINAL

Published: 2026-05-05 07:15:15 ET FWRG

Published on 05/05/2026 at 07:15 am EDT

Q1 2026

SUPPLEMENTAL INFORMATION

May 5, 2026

We are First Watch.

We're the leaders of the Daytime Dining category - a segment comprised of culinary-driven concepts operating exclusively during daytime hours. Our performance and successes are achieved during one 7½-hour shift, from 7 a.m. to 2:30 p.m.

We serve made-to-order breakfast, brunch and lunch using fresh ingredients, and our culture is built around a simple, people-focused mission: "You First."

Our elevated offering capitalizes on three long-term consumer trends: the attractive breakfast daypart, an increasing demand for fresh, healthy food and the heightened importance of on-demand dining.

We appeal to a broad mix of customers across generations from Gen Z to Baby Boomers.

Since 1983, we have delivered sales and unit growth as a result of our broad brand appeal. At the end of the first quarter, we operated 648 system-wide restaurants in 32 states, and we believe we're just getting started.

GOOD MORNING!

Q1 2026

PERFORMANCE & COMMENTARY

Q1 2026 HIGHLIGHTS

First Quarter 2026 Highlights:

Total revenues increased 17.3% to $331.0 million as compared to $282.2 million in the same period of 2025

System-wide sales increased 13.8% to $367.6 million as compared to $323.0 million in the same period of 2025

Same-restaurant sales growth of 2.8%

Same-restaurant traffic growth of negative 2.0%

Income from operations margin decreased to 0.3% as compared to 0.4% in the same period of 2025

Restaurant level operating profit margin* increased to 18.5% as compared to 16.5% in the same period of 2025

Net loss increased to $(2.7) million, or $(0.04) per diluted share, from a net loss of $(0.8) million, or $(0.01) per diluted share, in the same period of 2025

Adjusted EBITDA* increased to $27.8 million as compared to $22.8 million in the same period of 2025

Opened 16 system-wide restaurants in 11 states, with 1 planned closure, resulting in a total of 648 system-wide restaurants (572 company-owned and 76 franchise-owned) across 32 states

*See Non-GAAP Financial Measures Reconciliations section below.

"I am proud of our teams for delivering solid results, exemplified by Same Restaurant Sales growth of 2.8% and expanded restaurant-level operating profit versus a year ago. Our track record of rapid unit growth continued this quarter with 16 new restaurants added, bringing to 67 the total number of new restaurants opened over the past twelve months.

With strong execution against our 2026 plan and encouraging early results, we are reaffirming our full year top line growth outlook and raising the low end of our adjusted EBITDA guidance."

First Watch CEO and President

A TASTE OF Q1 + Q2 Winter/Spring | January 6 - May 25, 2026

THE

B.E.C.

Bacon. Egg. Cheddar. Our twist on a traditional breakfast sandwich -hardwood smoked bacon, folded cage-free eggs, aged Cheddar, house-pickled sweet peppers and arugula with Calabrian chili aioli and roasted garlic aioli on griddled artisan sourdough bread. Served with lemon-dressed organic mixed greens.

CHIMICHURRI STEAK & EGGS HASH

Seared steak, fresh spinach, Cheddar and Monterey Jack, diced red bell peppers and house-roasted onions in a potato hash, topped with two cage-free eggs any style, crumbled Feta cheese, house-pickled sweet peppers, roasted garlic aioli and a drizzle of chimichurri sauce.

STRAWBERRY TRES LECHES FRENCH TOAST

Thick-cut, custard-dipped, griddled challah bread, fresh glazed strawberries, warm dulce de leche, whipped cream and spiced gingerbread cookie crumbles. Lightly dusted with powdered cinnamon sugar.

BLUEBERRY

LEMON CORNBREAD

Freshly baked cornbread with sweet blueberries. Topped with house-whipped lemon butter and lightly dusted with powdered cinnamon sugar.

OUTLOOK FOR FISCAL YEAR 2026

Based upon first quarter results and current trends, the Company updated the following guidance metric for the 52-week fiscal year ending December 27, 2026:

Adjusted EBITDA(1) of $133 million to $140 million(2)

The Company reiterated the following guidance metrics for the 52-week fiscal year ending December 27, 2026:

Same-restaurant sales growth of 1% to 3%

Total revenue growth of 12% to 14%(2)

59 to 63 net new system-wide restaurants, including 3 company-owned restaurant closures (53 to 55 new company-owned restaurants and 9 to 11 new franchise-owned restaurants)

Capital expenditures of $150 million to $160 million invested primarily in new restaurant projects and planned remodels(3)

We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.

Includes net impact of approximately 1% in total revenue growth and approximately $2 million in Adjusted EBITDA associated with completed acquisitions.

Does not include the capital outlays associated with the acquisition of franchise-owned restaurants.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in thousands)

THIRTEEN WEEKS ENDED THIRTEEN WEEKS ENDED FISCAL YEAR

March 29, 2026 March 30, 2025 2025 2024 2023

Revenues

Restaurant sales

$ 328,148

99.2%

$ 279,591

99.1%

$ 1,212,173

99.2%

$ 1,004,355

98.9%

$ 877,092

98.4%

Franchise revenues

2,811

0.8%

2,649

0.9%

10,328

0.8%

11,555

1.1%

14,459

1.6%

Total revenues

330,959

100.0%

282,240

100.0%

1,222,501

100.0%

1,015,910

100.0%

891,551

100.0%

Operating costs and expenses

Restaurant operating expenses (1) (exclusive of depreciation and amortization shown below):

Food and beverage costs

74,310

22.6%

66,647

23.8%

280,098

23.1%

223,097

22.2%

197,374

22.5%

Labor and other related expenses

110,609

33.7%

96,754

34.6%

405,544

33.5%

335,038

33.4%

294,010

33.5%

Other restaurant operating expenses

51,904

15.8%

44,259

15.8%

188,685

15.6%

151,968

15.1%

134,477

15.3%

Occupancy expenses

27,410

8.4%

23,149

8.3%

100,788

8.3%

82,694

8.2%

68,400

7.8%

Pre-opening expenses

3,057

0.9%

2,660

1.0%

12,933

1.1%

10,109

1.0%

7,173

0.8%

General and administrative expenses

39,945

12.1%

30,219

10.7%

128,950

10.5%

113,270

11.1%

103,121

11.6%

Depreciation and amortization

21,396

6.5%

16,557

5.9%

75,011

6.1%

57,715

5.7%

41,223

4.6%

Impairments and loss on disposal of assets

153

0.0%

448

0.0%

525

0.1%

1,359

0.2%

Transaction and restructuring expenses, net

1,176

0.4%

873

0.3%

2,533

0.2%

2,587

0.3%

3,147

0.4%

Total operating costs and expenses

329,960

99.7%

281,127

99.6%

1,194,990

97.7%

977,003

96.2%

850,284

95.4%

Income from operations (1)

999

0.3%

1,113

0.4%

27,511

2.3%

38,907

3.9%

41,267

4.7%

Interest expense

(4,778)

(1.4)%

(3,334)

(1.2)%

(16,699)

(1.4)%

(12,640)

(1.2)%

(8,063)

(0.9)%

Other income, net

345

0.1%

684

0.2%

1,321

0.1%

1,759

0.2%

2,871

0.3%

(Loss) Income before income taxes

(3,434)

(1.0)%

(1,537)

(0.5)%

12,133

1.0%

28,026

2.8%

36,075

4.0%

Income tax benefit (expense)

749

0.2 %

708

0.3 %

7,299

0.6 %

(9,101)

(0.9)%

(10,690)

(1.2)%

Net (loss) income

$ (2,685)

(0.8)%

$ (829)

(0.3)%

$ 19,432

1.6%

$ 18,925

1.9%

$ 25,385

2.8%

Net (loss) income

$ (2,685)

$ (829)

$ 19,432

$ 18,925

$ 25,385

Other comprehensive income (loss):

Unrealized gain (loss) on derivatives

736

(883)

(869)

301

(889)

Income tax related to other comprehensive income (loss)

(182)

220

215

(75)

222

Comprehensive (loss) income

$ (2,131)

$ (1,492)

$ 18,778

$ 19,151

$ 24,718

Net (loss) income per common share - basic

$ (0.04)

$ (0.01)

$ 0.32

$ 0.31

$ 0.43

Net (loss) income per common share - diluted

$ (0.04)

$ (0.01)

$ 0.31

$ 0.30

$ 0.41

Weighted average number of common shares outstanding - basic

61,243,494

60,767,401

60,963,587

60,365,393

59,531,404

Weighted average number of common shares outstanding - diluted

61,243,494

60,767,401

62,842,519

62,351,222

61,191,613

The following table summarizes our results of operations and the percentages of items in our Consolidated Statements of Operations in relation to Total revenues or, where indicated, Restaurant sales for fiscal years 2025, 2024, 2023, the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025.

(1) Percentages are calculated as a percentage of restaurant sales

SELECTED OPERATING DATA

THIRTEEN WEEKS

FISCAL YEAR

March 29, 2026

March 30, 2025

2025

2024

2023

Operating weeks

System-wide restaurants

648

584

633

572

524

Company-owned

572

498

560

489

425

Franchise-owned

System-wide sales (in thousands)

$367,566

$322,999

$1,375,045

$1,184,469

$1,103,089

Same-restaurant sales growth (1)

2.8%

0.7%

3.6%

(0.5)%

7.6%

Same-restaurant traffic growth (1)

(2.0)%

(0.7)%

0.5%

(4.0)%

0.2%

Average Unit Volume (in thousands) *

$2,294

$2,204

$2,250

Income from operations (in thousands)

$999

$1,113

$27,511

$38,907

$41,267

Income from operations margin

0.3%

0.4%

2.3%

3.9%

4.7%

Restaurant level operating profit (in thousands) (2)

$60,858

$46,122

$224,125

$201,761

$175,658

Restaurant level operating profit margin (2)

18.5%

16.5%

18.5%

20.1%

20.0%

Net (loss) income (in thousands)

$(2,685)

$(829)

$19,432

$18,925

$25,385

Net (loss) income margin

(0.8)%

(0.3)%

1.6%

1.9%

2.8%

Adjusted EBITDA (in thousands) (3)

$27,797

$22,753

$120,918

$113,836

$99,483

Adjusted EBITDA margin (3)

8.4%

8.1%

9.9%

11.2%

*Average unit volume presented on an annual basis only.

Comparing the 52-week periods ended December 28, 2025, December 29, 2024 and December 31, 2023 in order to compare like-for-like periods. See "Key Performance Indicators" for additional information.

Reconciliations from Income from operations and Income from operations margin, the most comparable GAAP measures to Restaurant level operating profit and Restaurant level operating profit margin, respectively, are set forth in the schedules within the Non-GAAP Financial Measure Reconciliations section below.

Reconciliations from Net (loss) income and Net (loss) income margin, the most comparable GAAP measures to Adjusted EBITDA and Adjusted EBITDA margin,

respectively, are set forth in the schedules within the Non-GAAP Financial Measure Reconciliations section below.

APPENDIX

ATTRACTIVE NEW UNIT ECONOMICS, FLEXIBLE SIZE, WORKS EVERYWHERE

Year 3 Avg Sales(1)

Year 3 Restaurant-Level Operating Profit(1)

Year 3 Cash-On-Cash

Returns, actualized(2)

IRR(3)

2 6 1

Our flexible box size of ~3,500-6,600 sq ft with an average net build-out cost of ~$1.8M allows us to fit in any real estate and supports visibility to more than 2,200 restaurants

Demonstrated success of rapid unit growth

11.7% corporate-owned unit CAGR from 2015-2025

633 locations across the U.S. at the 2025 year end

Proven portability with restaurants in our top decile spanning 13 states and 24 DMAs

141

(1) Representative of our target 3-year new units performance, which is comparable to the historical 3-year performance of our new restaurants. (2) Cash-on-Cash Return is defined as Restaurant Level Operating Profit (excluding gift card breakage and deferred rent expense (income)) in the third year of operation (months 25-36 of operation) for company-owned restaurants divided by their cash build-out expenses, net of landlord incentives. (3) The Internal Rate of Return (IRR) is the annual growth rate that makes the net present value (NPV) of all cash flows from the investment zero. IRR represents the minimum yearly return needed for the investment in a new restaurant location to break even over the lease term. Note: Restaurant counts represent system-wide restaurants. AUV metrics by state is for Company-Owned restaurants only, representing trailing 12 months as of the end of Q4 2025.

FLORIDA

141

$2.4M AUV

TEXAS

$2.3M AUV

OHIO

$2.3M AUV

ARIZONA

$2.4M AUV

MISSOURI

$2.3M AUV 13

HISTORICAL DATA

2026

2025

2024

2023

Same-Restaurant Sales Growth

2.8%

0.7%

3.5%

7.1%

3.1%

3.6%

0.5%

-0.3%

-1.9%

-0.3% *

-0.5% *

12.9%

7.8%

4.8%

5.0%

7.6%

Same-Restaurant Traffic Growth (Decline)

-2.0%

-0.7%

2.0%

2.6%

-1.9%

0.5%

-4.5%

-4.0%

-4.4%

-3.0% *

-4.0% *

5.1%

-1.2%

-1.9%

-1.3%

0.2%

Comparable Restaurant Base

454

383

382

381

344

328

327

*Comparison to the 13-weeks and 52-weeks ended December 31, 2023, is provided for enhanced comparability. .

2026

2025

2024

Other restaurant operating expenses

$ 1,946

$ 1,443

$ 2,088

$ 2,358

$ 1,781

$ 7,670

$ 957

$ 928

$ 828

$ 2,971

$ 5,684

Occupancy expenses

1,111

1,217

1,419

1,455

1,172

5,263

610

900

1,559

1,356

4,425

Total Pre-opening expenses

$ 3,057

$ 2,660

$ 3,507

$ 3,813

$ 2,953

$ 12,933

$ 1,567

$ 1,828

$ 2,387

$ 4,327

$ 10,109

** Pre-opening expenses are presented in one line item on the Consolidated Statements of Operations and Comprehensive Income

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

(in thousands)

THIRTEEN WEEKS

FISCAL YEAR

March 29, 2026

March 30, 2025

2025 2024 2023

Net (loss) income

$ (2,685)

$ (829)

$ 19,432 $ 18,925 $ 25,385

Depreciation and amortization

21,396

16,557

75,011 57,715 41,223

Interest expense

4,778

3,334

16,699 12,640 8,063

Income tax (benefit) expense

(749)

(708)

(7,299) 9,101 10,690

EBITDA

22,740

18,354

103,843 98,381 85,361

Strategic costs (1)

376

1,234

3,279 1,843 892

Loss on extinguishment of debt

- 428 -

Stock-based compensation, net of amounts capitalized (2)

3,352

2,259

10,760 8,525 7,604

Delaware Voluntary Disclosure Agreement Program (3)

55 126 1,250

Transaction and restructuring expenses, net (4)

1,176

873

2,533 2,587 3,147

Insurance proceeds in connection with natural disasters, net (5)

- 329 (621)

Impairments and loss on disposal of assets (6)

153

448 525 1,359

Recruiting and relocation costs (7)

- 888 465

Severance costs (8)

- 204 26

Adjusted EBITDA

$ 27,797

$ 22,753

$ 120,918 $ 113,836 $ 99,483

Total revenues

$ 330,959

$ 282,240

$ 1,222,501 $ 1,015,910 $ 891,551

Net (loss) income margin

(0.8)%

(0.3)%

1.6 % 1.9 % 2.8 %

Adjusted EBITDA margin

8.4%

8.1 %

9.9 % 11.2 % 11.2 %

Additional information

Deferred rent (9)

$ (155)

$ 185

$ 309 $ 1,318 $ 2,090

Management uses Adjusted EBITDA and Adjusted EBITDA margin (i) as factors in evaluating management's performance when determining incentive compensation, (ii) to evaluate the Company's operating results and the effectiveness of our business strategies,

(iii) internally as benchmarks to compare the Company's performance to that of its competitors and (iv) to provide investors with additional transparency of the Company's operations. The use of Adjusted EBITDA and Adjusted EBITDA margin as performance measures permit a comparative assessment of the Company's operating performance relative to the Company's performance based on the Company's GAAP results, while isolating the effects of some items that are either nonrecurring in nature or vary from period

to period without any correlation to the Company's ongoing core operating performance.

The adjacent table reconciles Net (loss) income and Net (loss) income margin, the

Represents costs related to process improvements and strategic initiatives. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Represents non-cash, stock-based compensation expense, net of amounts capitalized, which is recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Represents professional service costs incurred in connection with the Delaware Voluntary Disclosure Agreement Program related to unclaimed or abandoned property. These costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Represents severance costs resulting from organizational optimization, costs incurred in connection with the acquisition of franchise-owned restaurants, secondary equity offering costs and costs related to restaurant closures

most directly comparable GAAP measures, (5) Represents insurance recoveries, net of costs incurred, in connection with hurricane damage, which were recorded in Other income, net on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

to Adjusted EBITDA and Adjusted EBITDA margin, respectively, for the periods indicated.

Represents impairment charges and costs related to the disposal of assets due to retirements, replacements and restaurant closures.

Represents costs incurred for hiring qualified individuals. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income

Severance costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Represents the non-cash portion of straight-line rent recorded within both Occupancy expenses and General and administrative expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income."

NON-GAAP FINANCIAL MEASURES RECONCILIATIONS

Restaurant level operating profit and Restaurant level operating profit margin are not indicative of our overall results, and because they exclude corporate-level expenses, do not accrue directly to the benefit of our stockholders. We will continue to incur such expenses in the future. Restaurant level operating profit and Restaurant level operating profit margin are important measures we use to evaluate the performance and profitability of each operating restaurant, individually and in the aggregate and to make decisions regarding future spending and other operational decisions. We believe that Restaurant level operating profit and Restaurant level operating profit margin provide useful information about our operating results, identify operational trends and allow for transparency with respect to key metrics used by us in our financial and operational decision-making.

THIRTEEN WEEKS THIRTEEN WEEKS

(in thousands) March 29, 2026 March 30, 2025 Income from operations $ 999 $ 1,113

Less: Franchise revenues (2,811) (2,649)

Add:

General and administrative expenses 39,945 30,219

Depreciation and amortization 21,396 16,557

Transaction and restructuring expenses, net (1) 1,176 873

Impairments and loss on disposal of assets (2) 153 9

Costs in connection with natural disasters (3) - -

Restaurant level operating profit $ 60,858 $ 46,122

Restaurant sales $ 328,148 $ 279,591

Income from operations margin 0.3 % 0.4 %

Restaurant level operating profit margin 18.5 % 16.5 %

Additional information

FISCAL YEAR

2025 2024 2023

$ 27,511 $ 38,907 $ 41,267

(10,328) (11,555) (14,459)

128,950 113,270 103,121

75,011 57,715 41,223

2,533 2,587 3,147

448 525 1,359

- 312 -

$ 224,125 $ 201,761 $ 175,658

$ 1,212,173 $ 1,004,355 $ 877,092

2.3 % 3.9 % 4.7 %

18.5 % 20.1 % 20.0 %

The adjacent table reconciles Income from operations and Income from operations margin, the most directly comparable GAAP financial measures, to Restaurant level operating profit and Restaurant level operating profit margin, respectively, for the periods indicated.

Deferred rent (4) $ (171) $ 135 $ 167 $ 1,119 $ 1,891

Represents impairment charges and costs related to the disposal of assets due to retirements, replacements and restaurant closures.

Represents costs incurred in connection with hurricane damage. The costs include inventory spoilage and labor costs, which were recorded in Food and beverage costs and Labor and other related expenses, respectively, on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

Represents the non-cash portion of straight-line rent recorded within Occupancy expenses on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

DEFINITIONS USED IN PRESENTATION

Adjusted EBITDA: represents Net income (loss) before depreciation and amortization, interest expense, income taxes, and items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of Net loss, the most directly comparable measure in accordance with GAAP, to Adjusted EBITDA, included in the section Non-GAAP Financial Measure Reconciliations above.

Adjusted EBITDA margin: represents Adjusted EBITDA as a percentage of total revenues. See Non-GAAP Financial Measure Reconciliations above for a reconciliation to Net loss margin, the most directly comparable GAAP measure.

Average Unit Volume: the total restaurant sales (excluding gift card breakage) recognized in the comparable restaurant base, which is defined as the number of company-owned First Watch branded restaurants open for 18 months or longer as of the beginning of the fiscal year ("Comparable Restaurant Base"), divided by the number of restaurants in the Comparable Restaurant Base during the period. This measurement allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

Restaurant level operating profit: represents restaurant sales, less restaurant operating expenses, which include food and beverage costs, labor and other related expenses, other restaurant operating expenses, pre-opening expenses and occupancy expenses. Restaurant level operating profit excludes corporate-level expenses and other items that we do not consider in the evaluation of the ongoing core operating performance of our restaurants as identified in the reconciliation of Income from operations, the most directly comparable GAAP measure, to Restaurant level operating profit, included in the section Non-GAAP Financial Measure Reconciliations above.

Restaurant level operating profit margin: represents Restaurant level operating profit as a percentage of restaurant sales. See Non-GAAP Financial Measure Reconciliations above for a reconciliation to Income from operations margin, the most directly comparable GAAP measure.

Same-restaurant sales growth: the percentage change in year-over-year restaurant sales (excluding gift card breakage) for the comparable restaurant base, which we define as the number of company-owned First Watch branded restaurants open for 18 months or longer as of the

beginning of the fiscal year ("Comparable Restaurant Base"). For the thirteen weeks ended March 29, 2026 and March 30, 2025, there were 454 restaurants and 383 restaurants, respectively, in our Comparable Restaurant Base. Measuring our same-restaurant sales growth allows management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors to provide a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of store openings, closings, and other transitional changes.

Same-restaurant traffic growth: the percentage change in year-over-year traffic counts using the Comparable Restaurant Base. Measuring our same-restaurant traffic growth allows Management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors because same-restaurant traffic provides an indicator as to the development of our brand and the effectiveness of our marketing strategy.

System-wide restaurants: the total number of restaurants, including all company-owned and franchise-owned restaurants.

System-wide sales: consists of restaurant sales from our company-owned restaurants and franchise-owned restaurants. We do not recognize the restaurant sales from our franchise-owned restaurants as revenue.

For more information, visit investors.firstwatch.com or email [email protected]

Disclaimer

First Watch Restaurant Group Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 11:14 UTC.