The revenue beat and raised EBITDA guidance provide a modest positive catalyst, but the widening GAAP net loss and negative traffic (-2.0%) are concerning. Monitor the Q2 2026 earnings for traffic inflection and margin trajectory — the stock may trade range-bound until same-restaurant traffic turns positive.
Price Chart
Executive Summary
First Watch reported Q1 2026 total revenue of $331.0M (+17.3% YoY) and a GAAP net loss of -$0.04/share, wider than the -$0.01 loss a year ago. The company raised the low end of its full-year Adjusted EBITDA guidance to $133M-$140M (from $132M-$140M) and reaffirmed its top-line outlook. Same-restaurant sales grew 2.8% but traffic declined 2.0%, and GAAP operating margin compressed to 0.3% — the net loss widened despite revenue growth, making this a mixed result.
Key Financial Metrics
Key Facts
- Total revenues increased 17.3% YoY to $331.0M from $282.2M
- GAAP net loss widened to -$2.7M (-$0.04/diluted share) from -$0.8M (-$0.01) in Q1 2025
- Adjusted EBITDA rose 22.2% to $27.8M from $22.8M; margin expanded to 8.4% from 8.1%
- Same-restaurant sales grew 2.8% but traffic declined 2.0%
- Restaurant-level operating profit margin improved to 18.5% from 16.5%
- Raised FY2026 Adjusted EBITDA guidance low end to $133M (from $132M), range now $133M-$140M
- Reaffirmed FY2026 same-restaurant sales growth of 1%-3% and total revenue growth of 12%-14%
- Opened 16 net new system-wide restaurants in Q1, ending with 648 total units
Financial Impact
Revenue beat consensus of $329.3M by ~0.5%; GAAP EPS of -$0.04 missed the Street consensus of -$0.02 by 100% (wider loss). Adjusted EBITDA guidance raise of ~$1M at the low end is modest.
Risk Factors
- Same-restaurant traffic has been negative for three consecutive quarters (Q1 2026 -2.0%, Q4 2025 -1.9%, Q1 2025 -0.7%)
- GAAP net loss is widening despite revenue growth, driven by elevated G&A (+32% YoY) and interest expense
- Consumer spending sensitivity in the daytime dining segment could pressure traffic further
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001789940-26-000059 |
| Exhibit: exh992q12026irsitedeckfi.htm | 0001789940-26-000059 |
| Document: fwrg-20260505.htm | 0001789940-26-000059 |
| Document: 0001789940-26-000059-index-headers.html | 0001789940-26-000059 |
| Document: 0001789940-26-000059-index.html | 0001789940-26-000059 |
| Document: 0001789940-26-000059.txt | 0001789940-26-000059 |
| 8-K Data (Synthetic) | 0001789940-26-000059 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | SC 13G/A | $11.56 | awaiting T+60 | — | $11.09 (−4.07%) |
Oct 20, 2026 7d ago | Press Release | $11.97 | awaiting T+60 | — | $11.09 (−7.35%) |
Aug 4, 2026 12w ago | 8-K | $12.80 | awaiting T+60 | — | $11.09 (−13.36%) |
Jun 8, 2026 20w ago | 8-K | $10.26 $12.11 | ▲ +18.03% | ▲ +14.22% | $11.09 (+8.09%) |
Jun 8, 2026 20w ago | Press Release | $10.26 $12.11 | ▲ +18.03% | ▲ +14.22% | $11.09 (+8.09%) |
May 5, 2026 25w ago | 8-K | $12.18 $13.34 | ▲ +9.52% | ▲ +6.78% | $11.09 (−8.95%) |
May 5, 2026 25w ago | Press Release | $12.18 $13.34 | ▲ +9.52% | ▲ +6.78% | $11.09 (−8.95%) |
Apr 8, 2026 28w ago | DEFA14A | $11.65 $12.93 | ▲ +10.99% | ▲ +0.21% | $11.09 (−4.81%) |
Mar 10, 2026 33w ago | Insider Cluster | $12.52 $10.53 | ▲ +15.89% | ▲ +27.30% | $11.09 (+11.42%) |
Mar 10, 2026 33w ago | Insider Cluster | $12.52 $10.53 | ▲ +15.89% | ▲ +27.30% | $11.09 (+11.42%) |
US Market Status
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