First Watch Restaurant Group Stock Earnings Reports

First Watch reported solid Q1 fiscal 2026 results: total revenue of $331M (up 17.3%), same-restaurant sales +2.8%, restaurant-level operating profit margin 18.5%, and adjusted EBITDA of $27.8M (+22.2%). The company opened 16 restaurants in the quarter and ended with 648 restaurants. Management reiterated full-year guidance for same-restaurant sales growth of 1%–3% and total revenue growth of 12%–14%, and raised the low end of adjusted EBITDA guidance to a $133M–$140M range. Key drivers: (1) an accelerated digital marketing rollout (now ~75% of restaurants) that management says is delivering positive ROI and attracting new and lapsed customers; (2) a system-wide rollout of a redesigned core menu and extended seasonal menu that are improving mix, driving higher attach rates and incremental check growth; and (3) continued disciplined development with an emphasis on market densification and attractive new-unit returns (guidance for 59–63 net new units in 2026). Headwinds and notes: same-restaurant traffic was -2% in Q1 (weather impacted ~100 bps and planned sales transfer also contributed); company expects food inflation 1%–3% and restaurant-level labor inflation 3%–5% for the year. Capital plan: capex $150M–$160M; management continues to prioritize reinvesting in growth (new units and marketing) while monitoring capital allocation options. Overall tone: confident—management sees early confirmation that marketing + menu changes are durable growth drivers, is pulling some marketing forward into Q2 to accelerate results, and remains committed to profitable expansion.