First Watch Restaurant Group (FWRG) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 revenue of $354.7 million, up 15.2% year-over-year, with system-wide sales rising 14.7% to $397.0 million and same-restaurant sales up 3.4%.

• Opened 18 new system-wide restaurants in Q2, expanding to 665 locations across 33 states, with new openings exceeding sales expectations.

• Net income increased to $2.3 million ($0.04 per diluted share), up from $2.1 million ($0.03 per share) in Q2 2025.

• Expanded marketing strategy and menu innovation contributed to increased brand awareness and customer engagement.

• Sequential improvement in comparable restaurant traffic, with positive traffic in June and outperforming the casual dining segment.

Financial highlights

• Adjusted EBITDA increased to $34.5 million from $30.4 million year-over-year; margin was 9.7%.

• Restaurant-level operating profit margin improved to 18.8% from 18.6% year-over-year.

• Restaurant-level operating profit for Q2 2026 was $65.9 million.

• Income from operations margin slightly decreased to 2.3% from 2.4% year-over-year.

• Cash and cash equivalents stood at $20.5 million as of June 28, 2026.

Outlook and guidance

• Fiscal 2026 guidance: same-restaurant sales growth of 1.5% to 3.0%, total revenue growth of 12.5% to 14.0%.

• Adjusted EBITDA expected between $133.0 million and $136.0 million.

• Plans for 60 to 62 net new system-wide restaurants, with capital expenditures of $145–$150 million focused on new projects and remodels.

• Full-year commodity inflation forecasted at 0% to 1.5%; wage inflation projected at 3.5% to 4.5%.

• Guidance reflects higher demand for premium beef offerings and modest same-restaurant sales growth.