First Watch (NASDAQ: FWRG) outlines long-term expansion and cash flow goals
Rhea-AI Filing Summary
First Watch Restaurant Group outlines long-term annual growth targets centered on expanding its daytime dining footprint and improving profitability. The plan calls for approximately 55 new system-wide restaurant openings per year, including about 50 company-owned and 5 franchise-owned locations, with Same Restaurant Sales Growth of 2% to 4% and total revenue growth of 10% to 13%.
Management targets Adjusted EBITDA growth of 11% to 14%, G&A expense growth below total revenue growth, and positive Free Cash Flow beginning in 2027, increasing annually. The strategy emphasizes self-funding new company-owned units from operating cash flow, supporting balance sheet strength, leveraging a 2,200+ unit U.S. market opportunity, and benefiting from an actualized third-year cash-on-cash return of about 35% on new restaurants. Non‑GAAP measures such as Adjusted EBITDA and restaurant-level operating profit are highlighted as supplemental performance metrics.
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Filing Explained
This August 4 Form 8-K furnishes an investor presentation of long-term targets; the presentation is forward-looking and expressly is not treated as “filed” for Exchange Act Section 18 liability. Because it presents plans rather than a completed transaction, the disclosure does not itself establish a new issuance, cash obligation, or change in existing holders’ ownership.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Annual system-wide openings: ~55 restaurants per year
Company vs. franchise openings: ~50 company-owned, ~5 franchise-owned
Same Restaurant Sales Growth: 2% to 4% per year
+5 more
8 metrics
Annual system-wide openings
~55 restaurants per year
Long-term annual target for new system-wide restaurant openings
Company vs. franchise openings
~50 company-owned, ~5 franchise-owned
Planned mix of annual new restaurant openings
Same Restaurant Sales Growth
2% to 4% per year
Target long-term annual Same Restaurant Sales Growth
Total revenue growth
10% to 13% per year
Target long-term annual total revenue growth
Adjusted EBITDA growth
11% to 14% per year
Target long-term annual Adjusted EBITDA growth rate
Third year cash-on-cash return
~35%
Current actualized third year cash-on-cash return for new units
Total addressable units
2,200+ restaurants
Estimated total addressable market in the continental U.S.
Free Cash Flow timing
Beginning in 2027
Target start of positive Free Cash Flow, increasing each year
Key Terms
Same Restaurant Sales Growth, Adjusted EBITDA, Restaurant level operating profit, Free Cash Flow, +2 more
6 terms
Same Restaurant Sales Growth financial
"• Same Restaurant Sales Growth of 2% to 4%(1)"
Adjusted EBITDA financial
"we use the following non-GAAP measures, which present operating results on an adjusted basis: (i) Adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Restaurant level operating profit financial
"(iii) Restaurant level operating profit and (iv) Restaurant level operating profit margin."
Restaurant level operating profit measures how much money a single restaurant or group of restaurants makes from their day-to-day sales after paying direct costs like food, labor and utilities but before corporate overhead, rent, interest, taxes or one-time charges. Think of it as the profit from running the kitchen and dining room alone, like checking whether a corner shop’s till covers its bills. Investors use it to judge the core unit economics and whether growth is likely to translate into real company profits.
Free Cash Flow financial
"Positive Free Cash Flow(2) beginning in 2027 and increasing each year"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
cash-on-cash return financial
"Current actualized third year cash-on-cash return of ~35%"
A cash-on-cash return measures the annual cash income an investor receives from an asset compared to the actual cash they put into it, expressed as a percentage. Think of it as the interest rate on the cash you laid out: it shows how quickly your invested money is generating cash flow, making it useful for comparing income-producing investments and gauging short-term cash performance before taxes and accounting adjustments.
total addressable market financial
"Total addressable market thesis intact — 2,200+ unit opportunity in the continental U.S."
Total addressable market is the total potential sales opportunity for a product or service if it were to reach every possible customer. It helps investors understand the maximum size of the market and the growth potential for a business. Think of it as the entire pie available to be shared, indicating how big the opportunity could be.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What long-term restaurant growth targets did First Watch (FWRG) outline?
First Watch targets opening about 55 new system-wide restaurants annually, with roughly 50 company-owned and 5 franchise-owned units. This expansion plan is central to its long-term growth strategy and supports broader goals for revenue, profitability, and market presence in daytime dining.
What sales and revenue growth does First Watch (FWRG) target each year?
The company is targeting Same Restaurant Sales Growth of 2% to 4% and total revenue growth of 10% to 13% annually. These goals are part of its long-term plan to expand the restaurant base while increasing overall sales and improving financial performance.
What Adjusted EBITDA and cash flow goals did First Watch (FWRG) present?
First Watch targets Adjusted EBITDA growth of 11% to 14% annually and positive Free Cash Flow beginning in 2027, increasing each year thereafter. The company plans to self-fund new restaurant openings from operating cash flow while also strengthening its balance sheet.
How large is First Watch’s (FWRG) potential restaurant footprint in the U.S.?
The company cites a total addressable market of 2,200+ units in the continental United States. This long-term opportunity underpins its plan for continued restaurant openings and supports the view that its growth runway in the daytime dining segment remains substantial.
Which non-GAAP financial measures does First Watch (FWRG) emphasize?
Management highlights Adjusted EBITDA, Adjusted EBITDA margin, Restaurant level operating profit, and Restaurant level operating profit margin. These non-GAAP metrics are presented as supplements to GAAP results to help analyze operating trends and core performance over time.
How is First Watch (FWRG) balancing aggressive expansion with financial flexibility?
The plan prioritizes ~50 company-owned openings annually funded from operating cash flow, aiming to self-fund new units and maintenance capital. Management also seeks G&A expense growth below revenue growth and to generate excess free cash flow that strengthens the balance sheet over time.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
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Emerging growth company ☐
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Item 7.01 Regulation FD Disclosure.
The Company has posted an investor presentation to its website at investors.firstwatch.com, which is attached as Exhibit 99.1 and incorporated herein by reference.
The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.
Item 9.01 - Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |||||||
99.1 | Investor presentation dated August 4, 2026 | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
First Watch Restaurant Group, Inc. (Registrant) | ||||||||
Date: August 4, 2026 | By: | /s/ Ashlee Weisser | ||||||
Name: | Ashlee Weisser | |||||||
Title: | Chief Financial Officer | |||||||
Long-Term Annual Growth Targets August 4, 2026 Exhibit 99.1
FORWARD LOOKING STATEMENTS In addition to historical information, this presentation may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “intend,” “outlook,” “potential,” “project,” “projection,” “plan,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this presentation in the context of the risks and uncertainties disclosed in our filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at https://investors.firstwatch.com/financial-information/sec- filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: our vulnerability to changes in consumer preferences and economic conditions such as inflation and recession; our inability to successfully open new restaurants or establish new markets; our inability to effectively manage our growth; potential negative impacts on sales at our and our franchisees’ restaurants as a result of our opening new restaurants in existing markets; a decline in visitors to any of the retail centers, lifestyle centers, or entertainment centers where our restaurants are located; lower than expected same-restaurant sales growth; unsuccessful marketing programs and limited time new offerings; changes in the cost of food; unprofitability or closure of new restaurants or lower than previously experienced performance in existing restaurants; our inability to compete effectively for customers; our vulnerability to food safety and food-borne illness concerns; unsuccessful financial performance of our franchisees, our limited control over our franchisees’ operations, our inability to maintain good relationships with our franchisees and conflicts of interest with our franchisees; the geographic concentration of our system-wide restaurant base in the southeast portion of the United States; damage to our reputation and negative publicity; our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media and artificial intelligence; our limited number of suppliers and distributors for several of our frequently used ingredients and shortages or disruptions in the supply or delivery of such ingredients; information technology system failures or breaches of our network security; our failure to comply with federal and state laws and regulations relating to privacy, data protection, advertising and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection, advertising and consumer protection; our potential liability with our gift cards under the property laws of some states; our failure to enforce and maintain our trademarks and protect our other intellectual property; litigation with respect to intellectual property assets; our dependence on our executive officers and certain other key employees; our inability to identify, hire, train and retain qualified individuals for our workforce; our failure to obtain or to properly verify the employment eligibility of our employees; our failure to maintain our corporate culture as we grow; unionization activities among our employees; employment and labor law proceedings; labor shortages or increased labor costs or health care costs; risks associated with leasing property subject to long-term and non-cancelable leases; risks related to our sale of alcoholic beverages; costly and complex compliance with federal, state and local laws, including trade and tax policies; changes in accounting principles applicable to us; our vulnerability to natural disasters, unusual weather conditions, pandemic outbreaks, political events, war and terrorism; our inability to secure additional capital to support business growth; our level of indebtedness; failure to comply with covenants under our credit facility; and uncertainty regarding the Russia and Ukraine war, war and unrest in the Middle East and the related impact on macroeconomic conditions, including inflation, as a result of such conflicts or other related events. The forward-looking statements included in this presentation are made only as of the date hereof and are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. NON-GAAP FINANCIAL MEASURES (UNAUDITED) To supplement the consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use the following non-GAAP measures, which present operating results on an adjusted basis: (i) Adjusted EBITDA, (ii) Adjusted EBITDA margin, (iii) Restaurant level operating profit and (iv) Restaurant level operating profit margin. Our presentation of these non-GAAP measures includes isolating the effects of some items that are either nonrecurring in nature or have no meaningful correlation to our ongoing core operating performance. These supplemental measures of performance are not required by or presented in accordance with GAAP. Management believes these non-GAAP measures provide investors with additional visibility into our operations, facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance, help to identify operational trends and allow for greater transparency with respect to key metrics used by Management in our financial and operational decision making. Our non-GAAP measures may not be comparable to similarly titled measures used by other companies and have important limitations as analytical tools. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP as they may not provide a complete understanding of our performance. These non-GAAP measures should be reviewed in conjunction with our consolidated financial statements prepared in accordance with GAAP. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. 2 CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES
3 LONG-TERM ANNUAL GROWTH TARGETS • ~55 new System-wide restaurant openings: ➢ ~50 company-owned, ~5 franchise-owned • Same Restaurant Sales Growth of 2% to 4%(1) • Total revenue growth of 10% to 13% • G&A Expense growth lower than Total Revenue growth • Adjusted EBITDA growth of 11% to 14% • Positive Free Cash Flow(2) beginning in 2027 and increasing each year (1) Includes positive underlying same-restaurant traffic, net of planned sales transfer from new restaurant growth. (2) Free Cash Flow is defined by Cash Flow from Operations minus capital expenditures.
4 BALANCING AGGRESSIVE EXPANSION WITH FINANCIAL FLEXIBILITY LONG-TERM GROWTH PLAN TO DRIVE ADJUSTED EBITDA GROWTH AND FREE CASH FLOW • Optimizing capital allocation framework by targeting ~50 company-owned restaurant openings annually • Enables self-funding of new restaurant openings and maintenance capital expenditures from operating cash flow • Generates excess free cash flow that strengthens the balance sheet • New unit economics remain highly compelling and growth extends our leadership in the Daytime Dining segment • Class of 2026: $1.8M net build cost and a $2.8M 3rd-year sales target — with average weekly sales currently running above their underwriting targets and our comp base • Current actualized third year cash-on-cash return of ~35% • Total addressable market thesis intact — 2,200+ unit opportunity in the continental U.S. provides a long, visible growth runway • Adjusted EBITDA growth rate • G&A expense discipline and margin enhancing initiatives drive adjusted EBITDA growth at a faster rate than sales growth • Positive Free Cash Flow beginning in 2027… • …and increasing each year from that base
For more information, visit investors.firstwatch.com or email investors@firstwatch.com