First Watch Restaurant Group (FWRG) 27th Annual ICR Conference 2025 summary

Business overview and growth strategy

• Operates 570+ units in the daytime café segment, with AUVs around $2.3 million and a $17 average check.

• Focuses on a single seven-and-a-half-hour shift, fostering a strong employee culture and operational efficiency.

• Present in 29 states, expanding to 30, with proven portability across diverse markets.

• Targets a total addressable market of 2,200 restaurants in the continental U.S.

• Consistent growth plan, aiming for over 10% annual unit growth, supported by disciplined site selection.

Financial and operational performance

• Fourth quarter results were at the high end of expectations, with comps flattish and traffic slightly down.

• Maintained strong restaurant margins despite softer transactions, driven by operator performance and data tools.

• Store margins improved in 2024, aided by real-time labor management and operational tweaks.

• New restaurants are exceeding legacy system AUVs and delivering strong cash-on-cash returns (30–35%).

• Average build cost per restaurant is $1.5–$1.6 million, with a target AUV of $2.6 million by year three.

Market trends and regional performance

• Breakfast daypart saw the most consumer pullback in 2024, but sentiment is improving.

• Florida, a key market, underperformed but is now normalizing and remains a growth focus.

• Off-premise sales stabilized at 17–18% of total, with a focus on profitable growth over volume.

• Brand awareness remains relatively low, presenting both challenges and opportunities for targeted marketing.