By Exec Edge Editorial Staff
First Watch Restaurant Group, Inc. (Nasdaq: FWRG) shares rose 3 percent after the company raised guidance for 2023.
The daytime dining chain raised its 2023 adjusted EBITDA guidance, projecting total revenue growth of 16% to 20%. The outlook also includes 45-51 new system-wide restaurants, with capital expenditures in the range of $100 million to $110 million, invested primarily in new restaurant projects and planned remodels.
In the first quarter, total revenue increased by 22.1% to $211.4 million compared to the first quarter of 2022. The company also opened 10 new restaurants across seven states, resulting in a total of 484 system-wide restaurants across 29 states.
The strong performance was driven by a 12.9% increase in same-restaurant sales, which was fueled by a 5.1% rise in same-restaurant traffic. The company’s income from operations margin increased to 7.4%, while the restaurant level operating profit margin increased to 21.2%.
Adjusted EBITDA rose to $27.4 million from $19.4 million in the same period of 2022. The company’s net income was $9.4 million, up from $4.6 million in Q1 2022.
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