Key Points – Strong second-quarter growth: Revenue rose 15.2% to $354.7 million, driven by 3.4% same-restaurant sales growth, marketing initiatives and 18 new restaurant openings.
Adjusted EBITDA increased 13.5% to $34.5 million, while restaurant-level margins improved to 18.8%. – 2026 outlook raised for sales but lowered for EBITDA: First Watch lifted its same-restaurant sales outlook to 1.5%-3% and revenue growth forecast to 12.5%-14%, but cut adjusted EBITDA guidance to $133 million-$136 million because strong demand for premium beef offerings increased food costs. – Expansion continues at a measured pace: The company ended the quarter with 665 restaurants across 33 states and now expects 60-62 net new openings in 2026
Beginning in 2027, it plans roughly 50 company-owned openings annually while targeting positive free cash flow and a stronger balance sheet. – First Watch Restaurant Group: A First-Rate Small-Cap Growth Stock First Watch Restaurant Group (NASDAQ:FWRG) reported second-quarter revenue growth of 15.2% as positive same-restaurant sales, marketing initiatives and new restaurant openings supported results. The daytime dining chain also raised the low end of its full-year same-restaurant sales and revenue growth outlook, while lowering its adjusted EBITDA forecast due to higher costs associated with strong demand for premium beef menu items. Chief Executive Officer and President Chris Tomasso said the company generated 3.4% same-restaurant sales growth during the quarter.
Comparable traffic improved sequentially and turned positive in June, although same-restaurant traffic for the full quarter was essentially flat. The company said quarterly same-restaurant traffic improved 160 basis points from the first quarter and outperformed casual dining and the broader restaurant industry, according to Black Box. “We are pleased to report another strong quarter of growth,” Tomasso said, citing sales gains from both comparable restaurants and new unit openings….