First Watch Restaurant Group, Inc.

First Watch Restaurant Group, Inc. operates a daytime-only restaurant concept focused on breakfast, brunch and lunch made from fresh ingredients. The company runs most of its system as company-owned restaurants, with a smaller franchise base, and differentiates itself through a single-shift operating model, a fresh menu and a service culture built around its “You First” brand promise.

8,4 %

1,6 %

+20,3 %

0.29

0.25

— First Watch Restaurant Group, Inc.
%
Company-owned restaurant sales92% Food and beverage sales from First Watch-branded company-operated restaurants.
Franchise revenues8% Royalties, system fund contributions and amortized initial franchise fees from franchisees.

First Watch serves consumers seeking breakfast, brunch and lunch in a casual dining setting, with demand centered on...

  • Daytime dine-in guestsprimary

    Consumers visiting for breakfast, brunch or lunch and valuing fresh food, service and atmosphere.

  • Take-out and delivery customerssecondary

    Guests ordering off-premise meals through take-out or third-party delivery for convenience.

  • Digital-engaged repeat customerssecondary

    Customers identified through first-party data, waitlist and ordering systems to drive frequency.

  • Franchise operatorssecondary

    Independent operators that pay fees to use the First Watch brand, recipes and operating methods.

The business is concentrated in the United States, with 633 restaurants across 32 states as of year-end 2025...

  • •Operations are concentrated in the United States
  • •633 restaurants across 32 states as of December 28, 2025
  • •Most restaurants are company-owned, supporting direct control
  • •Growth depends on new openings in existing and new markets
  • •Geographic concentration increases exposure to U.S. consumer trends

The company is expanding its daytime dining footprint while preserving its fresh-food positioning and operational...

01
Accelerate targeted digital marketingshort-term

Management believes paid digital channels and first-party data can lift traffic and frequency.

02
Expand the restaurant basemedium-term

New openings drive system growth and increase company-owned sales.

03
Protect the daytime dining brand positionlong-term

The no-night-shifts model supports labor recruitment, retention and operational efficiency.

The company is exposed to consumer spending swings, traffic declines and intense competition in the breakfast and lunch...

high

Same-restaurant traffic decline

Restaurant sales depend on guest visits, and management disclosed negative traffic in the quarter.

Scope
Core company-owned restaurant base
Materiality
high
high

Commodity inflation

Food costs are sensitive to eggs, coffee, bacon and avocados, which can compress margins.

Scope
Food and beverage cost structure
Materiality
high
high

New restaurant execution risk

Growth depends on opening and ramping new stores profitably without hurting existing sales.

Scope
Company-owned expansion pipeline
Materiality
high
high

Holding-company cash dependence

The parent company has no material direct operations and relies on subsidiary distributions.

Scope
Parent-level liquidity and obligations
Materiality
high
medium

Franchise and supplier concentration

Royalties depend on franchisee health, and the company relies on a small number of suppliers for key inputs.

Scope
Franchise revenues and procurement
Materiality
medium
Restaurant sales vs. franchise revenue
Mix shifts can change reported revenue growth and profitability
Franchise fee recognition
Defers revenue and smooths franchise income over time
Goodwill and trademark impairment
Could create non-cash charges if growth or margins weaken
Depreciation and amortization from new openings
Raises operating expenses as the store base expands
Seasonality and traffic comparability
Affects quarter-to-quarter sales and margin comparisons

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: 28/04/2026