Breakfast restaurant chain First Watch Restaurant Group (NASDAQ: FWRG) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
First Watch beat analysts’ revenue expectations last quarter, reporting revenues of $354.7 million, up 15.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ same-store sales estimates but EPS in line with analysts’ estimates.
Is First Watch a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting First Watch’s revenue to grow 10.4% year on year, slowing from the 25.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. First Watch has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at First Watch’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. The Cheesecake Factory delivered year-on-year revenue growth of 13.9%, beating analysts’ expectations by 2.7%, and Brinker International reported revenues up 9.4%, topping estimates by 1.2%. The Cheesecake Factory traded down 2.5% following the results while Brinker International was up 11.8%.
Read our full analysis of The Cheesecake Factory’s results here and Brinker International’s results here.
There has been positive sentiment among investors in the sit-down dining segment, with share prices up 12% on average over the last month. First Watch is up 21.2% during the same time and is heading into earnings with an average analyst price target of $18.30 (compared to the current share price of $12.74).
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