--- title: "First Watch Restaurant | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 354.67 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294811626.md" datetime: "2026-08-04T11:05:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294811626.md) - [en](https://longbridge.com/en/news/294811626.md) - [zh-HK](https://longbridge.com/zh-HK/news/294811626.md) --- # First Watch Restaurant | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 354.67 M Revenue: As of FY2026 Q2, the actual value is USD 354.67 M, beating the estimate of USD 351.57 M. EPS: As of FY2026 Q2, the actual value is USD 0.04. EBIT: As of FY2026 Q2, the actual value is USD 8.26 M. ### Financial Overview (Thirteen Weeks Ended June 28, 2026 vs. June 29, 2025) #### Revenue - **Total Revenues**: First Watch Restaurant Group, Inc. reported total revenues of $354.7 million, an increase of 15.2% compared to $307.9 million in the same period of 2025. - **System-wide Sales**: System-wide sales increased by 14.7% to $397.0 million, up from $346.2 million in the prior year period. - **Restaurant Sales**: Restaurant sales were $351,481 thousand in Q2 2026, compared to $304,983 thousand in Q2 2025. - **Franchise Revenues**: Franchise revenues were $3,191 thousand in Q2 2026, up from $2,904 thousand in Q2 2025. #### Operational Metrics - **Net Income**: Net income increased to $2.3 million, or $0.04 per diluted share, from $2.1 million, or $0.03 per diluted share, in the same period of 2025. - **Net Income Margin**: The net income margin was 0.7% in Q2 2026, consistent with 0.7% in Q2 2025. - **Adjusted EBITDA**: Adjusted EBITDA increased to $34.5 million, compared to $30.4 million in the same period of 2025. The Adjusted EBITDA margin was 9.7% in Q2 2026, compared to 9.9% in Q2 2025. - **Income from Operations**: Income from operations was $8,127 thousand in Q2 2026, up from $7,313 thousand in Q2 2025. - **Income from Operations Margin**: The income from operations margin decreased to 2.3% from 2.4% in the same period of 2025. - **Restaurant Level Operating Profit**: Restaurant level operating profit was $65,948 thousand in Q2 2026, compared to $56,776 thousand in Q2 2025. - **Restaurant Level Operating Profit Margin**: The Restaurant Level Operating Profit Margin increased to 18.8% from 18.6% in the same period of 2025. - **Operating Costs and Expenses**: - Food and beverage costs: $82,593 thousand in Q2 2026 vs. $71,978 thousand in Q2 2025. - Labor and other related expenses: $115,723 thousand in Q2 2026 vs. $101,310 thousand in Q2 2025. - Other restaurant operating expenses: $55,557 thousand in Q2 2026 vs. $46,603 thousand in Q2 2025. - Occupancy expenses: $28,345 thousand in Q2 2026 vs. $24,809 thousand in Q2 2025. - Pre-opening expenses: $3,315 thousand in Q2 2026 vs. $3,507 thousand in Q2 2025. - General and administrative expenses: $38,727 thousand in Q2 2026 vs. $33,185 thousand in Q2 2025. - Depreciation and amortization: $21,839 thousand in Q2 2026 vs. $18,136 thousand in Q2 2025. - Impairments and loss on disposal of assets: $114 thousand in Q2 2026 vs. $127 thousand in Q2 2025. - Transaction and restructuring expenses, net: $332 thousand in Q2 2026 vs. $919 thousand in Q2 2025. - Total operating costs and expenses: $346,545 thousand in Q2 2026 vs. $300,574 thousand in Q2 2025. - **Interest Expense**: Interest expense was - $4,892 thousand in Q2 2026, compared to - $4,003 thousand in Q2 2025. - **Other Income, net**: Other income, net was $133 thousand in Q2 2026, compared to $266 thousand in Q2 2025. - **Income Tax Expense**: Income tax expense was - $1,029 thousand in Q2 2026, compared to - $1,470 thousand in Q2 2025. - **Comprehensive Income**: Comprehensive income was $2,575 thousand in Q2 2026, compared to $2,012 thousand in Q2 2025. #### Other Key Metrics - **Same-Restaurant Sales Growth**: The company achieved Same-Restaurant Sales Growth of 3.4% in Q2 2026, compared to 3.5% in Q2 2025. - **Same-Restaurant Traffic Growth**: Same-Restaurant Traffic Growth was -0.4% in Q2 2026, compared to 2.0% in Q2 2025. - **Restaurant Openings**: First Watch Restaurant Group, Inc. opened 18 new system-wide restaurants across 15 states, with 1 planned closure, during Q2 2026. - **System-wide Restaurants**: At the end of Q2 2026, the company operated a total of 665 system-wide restaurants (586 company-owned and 79 franchise-owned) across 33 states, compared to 600 system-wide restaurants (531 company-owned and 69 franchise-owned) at the end of Q2 2025. #### Cash Flow - The provided reference does not contain information on Operating Cash Flow or Free Cash Flow. ### Outlook for Fiscal Year 2026 First Watch Restaurant Group, Inc. updated its guidance for the 52-week fiscal year ending December 27, 2026. The company projects Same-Restaurant Sales Growth of 1.5% to 3.0% and total revenue growth of 12.5% to 14.0%. Adjusted EBITDA is anticipated to be between $133.0 million and $136.0 million, with plans to open 60 to 62 net new system-wide restaurants and capital expenditures of $145.0 million to $150.0 million. ### Related Stocks - [FWRG.US](https://longbridge.com/en/quote/FWRG.US.md) ## Related News & Research - [Quantinno Capital Management LP Acquires 171,342 Shares of First Watch Restaurant Group, Inc. $FWRG](https://longbridge.com/en/news/295635579.md) - [FWRG: Q2 2026 delivered strong revenue and profit growth, with robust expansion and positive outlook](https://longbridge.com/en/news/294814724.md) - [Brinker Q4 revenue slightly beats on higher menu pricing, guest traffic](https://longbridge.com/en/news/295653174.md) - [EAT: Strong Q4 and FY26 results with robust guidance for FY27, led by Chili's sustained growth](https://longbridge.com/en/news/295653205.md) - [Diageo announces BRL 0.32 per unit distribution for Q3 2026](https://longbridge.com/en/news/295964479.md)