Key Highlights

  • FWRG shares rose 6.83% pre-market to $13.84 after a third-quarter Earnings beat.
  • Revenue grew 10.7% to $349.9 million, with earnings of $0.08 per share.
  • Full-year Adjusted EBITDA outlook moves to the high end, near $136 million.

First Watch Restaurant Group (NASDAQ:FWRG) shares rose 6.83% to $13.84 in pre-market today, a gain of $0.89 from the prior close of $12.95. The move followed results for the thirteen weeks ended September 27, 2026. Revenue of $349.9 million was up from $316.0 million a year earlier and ahead of market estimates of $348.8 million. Diluted earnings of $0.08 per share compared with a consensus of $0.04 and $0.05 in the prior-year period.

The Bradenton, Florida-based company, founded in 1983, operates the First Watch Daytime Dining brand, which serves made-to-order breakfast, brunch and lunch. It closed the quarter with 681 restaurants across 33 states, made up of 601 company-owned and 80 franchised locations, after opening 16 during the period.

The gap extends a rally of roughly 21% over the past month. Shares remain below the 52-week high of $18.77.

Profit Growth Alongside Lower Same-Restaurant Traffic

Net income rose to $4.8 million from $3.0 million. Adjusted EBITDA climbed to $39.7 million, lifting its Margin to 11.4% from 10.8%. System-wide sales, which include franchised locations, increased 10.9% to $391.2 million.

Same-restaurant sales rose 1.0% against what management described as the toughest comparison of the year, while same-restaurant traffic declined 1.9%. Restaurant level operating profit margin was 19.4% compared with 19.7%, income from operations margin held at 3.2%, and interest expense was $4.9 million compared with $4.6 million.

Full-Year Guidance Moves to the High End of the EBITDA Range

Management lifted its full-year Adjusted EBITDA outlook to the high end of its previous range, at about $136.0 million, including roughly $2 million from completed acquisitions. The company also expects same-restaurant sales growth of about 2.0% and total revenue growth of about 13.5%. Plans call for 60 net new restaurants, including two company-owned closures, with Capital spending of about $145.0 million.

The full-year revenue outlook was narrowed to about $1.388 billion, in line with consensus. Nine-month revenue reached $1.04 billion, against $906.1 million a year earlier.

The stock carries a trailing price-to-earnings ratio of 45.63 and a forward multiple of 58.36, on trailing earnings of $0.29 per share. The third-quarter Net Income margin was 1.4%. The average analyst price target is about $18.

Management Call and Fourth-Quarter Trends Are the Next Checkpoints

First Watch reported higher revenue, earnings and Adjusted EBITDA, alongside lower same-restaurant traffic and a slightly lower restaurant level margin. The company has narrowed its full-year outlook with 60 net new restaurants planned. The next items to follow are management's conference call today, where traffic trends, margin drivers and consumer value sentiment are expected topics, and results for the fiscal year ending December 27, 2026.