First Watch Restaurant Group (FWRG) Piper Sandler 5th Annual Growth Frontiers Conference summary

Strategic growth targets and development

• Updated long-term targets now emphasize slightly lower unit growth and increased focus on free cash flow generation, following five years of exceeding initial goals.

• Growth algorithm aims to maintain industry-leading expansion while strengthening the balance sheet.

• Capping unit growth is expected to reduce sales transfer and cannibalization, supporting same-restaurant sales.

• Flexibility in market entry allows for balanced expansion across core, emerging, and new markets, with recent successful entries in New England, Las Vegas, Boise, and Memphis.

• California remains a long-term target, but near-term focus is on further densification in existing and new markets, especially in the Mid-Atlantic, Florida, Arizona, and Texas.

Store productivity and site strategy

• New store productivity continues to exceed underwriting targets, with no expected moderation as long as disciplined site selection is maintained.

• Second-generation site conversions have become a strategic focus, offering attractive real estate and rapid conversion opportunities.

• These conversions are expected to remain a significant part of the opening portfolio due to increasing availability.

Marketing and brand awareness

• Marketing strategy has shifted to a test-learn-act model, expanding incremental spend to 75% of the system in 2026.

• Tactics are tailored to attract both new guests and drive repeat visits, with messaging differentiated by customer type.

• Unaided brand awareness has increased 50% since early 2025, aided awareness rose from 11% at IPO to the low 40s, though overall awareness remains low versus industry peers.

• Focus remains on targeted local marketing rather than national campaigns, leveraging digital and connected TV for efficiency.