2024-05-09 05:27:38 ET
Summary
- First Watch Restaurant reported healthy revenue growth in Q1, but weaker year-over-year profitability as restaurant traffic slowed down in the industry in the quarter.
- The company slightly lowered the 2024 outlook in anticipation of a continuation in weaker-than-anticipated restaurant traffic.
- The long-term growth story still stands, and First Watch continues to heavily invest into new restaurants in 2024 with 44 to 48 new company-owned restaurants.
- The valuation now reflects First Watch's prospects fairly with my financial estimates.
First Watch Restaurant Group ( FWRG ) reported the company’s Q1 results on the 7 th of May, showing slightly lower, but healthy revenue growth coupled with a slightly softer margin year-over-year. The stock reacted negatively, posing a -14% return on the day of the Q1 report....
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First Watch Restaurant: Traffic Slowdown Doesn't Disturb The Growth Story