The massive EPS beat and raised EBITDA guidance are positive, but the widening GAAP net loss and negative traffic growth create a mixed picture. Watch for same-restaurant traffic trends in Q2 to confirm whether the 2.8% sales growth is sustainable via pricing/mix or if traffic deterioration accelerates.
Price Chart
Executive Summary
First Watch reported Q1 2026 EPS of $0.24, a massive beat vs. consensus of -$0.03, on revenue of $331.0M (above $329.3M consensus, +17.3% YoY). However, GAAP net loss widened to -$2.7M from -$0.8M a year ago, and same-restaurant traffic declined 2.0%, offsetting the headline beat. Management raised the low end of full-year adjusted EBITDA guidance to $133M-$140M, but reiterated same-restaurant sales growth of 1%-3%.
Key Financial Metrics
Key Facts
- Q1 2026 EPS $0.24 vs consensus -$0.03 (947% beat)
- Total revenue $331.0M vs consensus $329.3M, up 17.3% YoY
- GAAP net loss widened to -$2.7M from -$0.8M YoY
- Same-restaurant sales growth +2.8%, but traffic declined 2.0%
- Restaurant-level operating profit margin expanded to 18.5% from 16.5%
- Adjusted EBITDA rose to $27.8M from $22.8M YoY
- Raised FY2026 adjusted EBITDA guidance low end to $133M-$140M
- Reaffirmed same-restaurant sales growth of 1%-3% and total revenue growth of 12%-14%
- Opened 16 new system-wide restaurants in Q1
Financial Impact
EPS beat by $0.27 vs consensus; revenue beat by $1.7M; adjusted EBITDA guidance raised by ~$3M at low end
Risk Factors
- Negative same-restaurant traffic (-2.0%) signals weakening customer demand despite price increases
- GAAP net loss widened to -$2.7M from -$0.8M, driven by higher interest expense and G&A costs
- Income from operations margin compressed to 0.3% from 0.4%
- High capital expenditure guidance ($150M-$160M) may pressure free cash flow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287500 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $11.00 | awaiting T+60 | — | $11.09 (+0.82%) |
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%) |
US Market Status
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