First Watch Restaurant Group (FWRG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10.7% YoY to $349.9M; same-restaurant sales increased 1.0% while traffic declined 1.9%.

• Adjusted EBITDA increased to $39.7M from $34.1M; 16 system-wide restaurants opened during the quarter.

Financial highlights

• System-wide sales grew 10.9% to $391.2M; restaurant sales were $346.7M and franchise revenue was $3.1M.

• Net income rose to $4.8M from $3.0M, or $0.08 versus $0.05 per diluted share; operating income was $11.0M versus $10.1M.

• Adjusted EBITDA margin expanded to 11.4% from 10.8%; the quarter included a roughly $1M timing benefit from expenses shifted to Q4.

• G&A was $35.2M, or 10.1% of revenue versus 10.7% a year earlier; income-from-operations margin was 3.2%, flat YoY.

Outlook and guidance

• FY2026 same-restaurant sales growth is expected at ~2.0%; revenue growth guidance is ~13.5%, including ~1% from completed acquisitions.

• FY2026 Adjusted EBITDA guidance is $136.0M, at the high end of the prior $133M–$136M range; completed acquisitions contribute an estimated ~$2M.

• FY2026 plan includes 60 net system-wide openings: 53 company-owned and 9 franchise-owned, less 2 company-owned closures.

• FY2026 commodity inflation is expected to be ~flat, wage inflation ~4%, and capital expenditures ~$145M.

• 2027 openings are expected at ~55; annual Adjusted EBITDA growth through 2028 is targeted above 15%, with 2%–4% same-restaurant sales growth and positive free cash flow beginning in 2027.