First Watch Restaurant Group (FWRG) Q4 2025 earnings summary

Executive summary

• Total revenues grew 20.3% year-over-year to $1.2 billion for 2025, with Q4 revenue at $316.4 million, and system-wide sales up 16.1% to $1.4 billion.

• Net income for 2025 was $19.4 million, with Q4 net income rising to $15.2 million from $0.7 million in Q4 2024.

• Opened 64 new restaurants in 2025, the highest in company history, expanding to 633 locations across 32 states.

• Launched a new core menu and digital marketing initiatives, driving brand awareness and customer visits.

• CFO Mel Hope announced retirement, with a transition plan in place.

Financial highlights

• Restaurant-level operating profit for 2025 was $224.1 million, with a margin of 18.5%; Q4 margin reached 19.0%.

• Adjusted EBITDA for 2025 was $120.9 million, with Q4 Adjusted EBITDA at $33.7 million and margin at 10.6%.

• Net income margin for 2025 was 1.6%; Q4 net income margin was 4.8%.

• Same-restaurant sales grew 3.6% for 2025, with Q4 growth at 3.1%.

• Opened 13 new system-wide restaurants in Q4 2025.

Outlook and guidance

• 2026 guidance: same-restaurant sales growth of 1%–3%, total revenue growth of 12%–14%.

• Adjusted EBITDA expected between $132 million and $140 million for 2026.

• Plan to open 59–63 new system-wide restaurants, with capital expenditures of $150–$160 million.

• No menu price increases at the start of 2026; carried pricing expected to blend to 2% for the year.

• Full-year commodity inflation forecasted at 1%–3%, with labor cost inflation at 3%–5%.