First Watch Restaurant Group (FWRG) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and growth strategy

• Operates over 600 daytime-only restaurants focused on breakfast, brunch, and lunch, with a reputation for fresh, high-quality ingredients and no deep fryers or microwaves.

• Achieved low double-digit unit growth for several years, entering five new markets in the past year and maintaining leadership in daytime dining.

• New unit sales performance has consistently exceeded internal targets, with 2025 new openings performing 19% above underwriting targets.

• Growth pipeline remains robust, with plans to expand in both new and core markets, including the Sun Belt and Mid-Atlantic regions.

• Strategic market entries are balanced with continued development in established areas, leveraging operational efficiency as markets mature.

Menu, marketing, and guest experience initiatives

• Launched a new core menu for the first time in 10 years, following extensive testing, alongside five seasonal menus annually.

• Expanded digital marketing initiatives from one-third to 75% of the system in 2026, leveraging consumer and third-party data for targeted campaigns.

• Investments in guest experience included increased portion sizes and digital guest-facing tools to reduce friction.

• Continued focus on operational technology and menu simplification to enhance both customer and employee experiences in 2026.

• Operational improvements in recent years have enabled record-setting peak sales hours and strong new restaurant performance.

Financial outlook and pricing strategy

• 2026 guidance includes same-restaurant sales comps up 1%-3%, with no price increase taken in January and a mid-year review planned.

• Pricing philosophy is conservative, aiming to cover only permanent inflation and maintain value for consumers, having taken about 15% less price than peers since 2019.

• Store margins for 2026 expected to be flat, with commodity inflation guided at 1%-3% and labor inflation at 3%-5%.

• Commodity basket for 2026 expects deflation in eggs and avocados, but inflation in bacon and coffee, with coffee costs elevated due to premium sourcing.

• Focus remains on driving frequency and value through experience and quality rather than discounting.