First Watch Restaurant Group (FWRG) investor relations material

Strategic position and growth

• Strategic North Star: “own the morning,” extending daytime dining leadership through a differentiated, fresh, made-to-order concept and disciplined growth.

• Long-term opportunity exceeds 2,200 restaurants across the continental U.S.; current footprint is 681 restaurants in 33 states, and daytime dining holds over 75% of segment market share.

• Since 2021, daytime dining CAGR was 9%; unit growth since 2022 outpaced a broader category experiencing net contraction.

• 2022–2025 IPO targets were met or exceeded: revenue CAGR 18.7%, Adjusted EBITDA CAGR 20.4%, unit growth 10.1%, G&A leverage 110 bps and same-restaurant sales growth 3.5%.

• On track for 62 systemwide openings in 2026 and ~55 in 2027; the 2027 pipeline is full, with opening pace flexible thereafter.

Financial framework and guidance

• For 2027–2028, target same-restaurant sales growth of 2%–4%, including positive underlying traffic net of planned sales transfer; planned transfer is expected to create a 100–150 bps traffic headwind in 2027.

• Target total revenue growth of 10%–13%, with G&A growth below revenue growth.

• Adjusted EBITDA growth target is 15%+ in 2027–2028, outpacing revenue growth, supported by restaurant productivity and G&A leverage.

• Positive free cash flow is expected from 2027 and to increase annually; management describes 2027 as an inflection year.

• Positive underlying traffic assumptions rely on initiatives within management’s control, not a materially improved consumer environment.

Capital allocation and cash generation

• Strategy shifts from investment-led scaling to a more balanced, increasingly self-funded path to the unchanged 2,200+ restaurant destination.

• Priorities are to protect financial flexibility and liquidity, invest in high-return growth, then direct incremental free cash flow to its highest risk-adjusted use.

• Increasing free cash flow is intended first to move net leverage toward ~1x or below, strengthening resilience and preserving capacity for attractive opportunities.

• From 2027, cash flow is expected to self-fund organic growth and maintenance capex; measured openings balance growth with free cash flow and reinforce the balance sheet.

• A more measured pace moderates capital needs and sales-transfer headwinds, while faster new-restaurant maturation and enterprise leverage broaden earnings growth beyond unit additions.