FWRG - First Watch raises guidance on strong traffic trends

First Watch Restaurant Group ( NASDAQ: FWRG ) reported same-restaurant sales growth of 13.4% in Q2 and same-restaurant traffic growth of 8.1%. Same-restaurant sales were up more than 30% compared to the level seen in 2019.

Restaurant level operating profit margin fell to 18.2% of sales in Q2 vs. 22.5% a year ago as higher costs factored in.

Adjusted EBITDA was $17.8M vs. $22.2M last year.

The restaurant chain opened nine restaurants during the quarter across seven states.

Looking ahead, First Watch ( FWRG ) expects revenue growth of approximately 20.0% and same-restaurant sales growth in the range of 13.0% to 15.0% Adjusted EBITDA is expected to land in a range of $70.0M to $72.0M. FWRG also sees capital expenditures in the range of $60.0M to $70.0M invested primarily in new restaurant projects, planned remodels and new in-restaurant technology. On the development front, 30 to 35 new company-owned restaurants are expected for FY22 and 8 to 13 new franchise-owned restaurants.

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