First Watch Posts $349.9 Million in Revenue, Raises FY2026 Outlook
Key Facts
First Watch Restaurant Group reported net income of $4.8 million, or $0.08 per diluted share, in the third quarter of 2026, compared with $3.0 million and $0.05 per share in the same period of 2025. Revenue rose to $349.9 million, up 10.7% from $316.0 million a year earlier. The results show revenue and earnings growth alongside declining traffic at established restaurants, putting the performance of existing locations alongside the impact of network expansion in the quarter’s results. The company said comparable-restaurant sales rose 1.0%, while traffic at those restaurants fell 1.9%. The company’s stock, listed under the ticker FWRG, closed at $12.95 on November 2, the day before the results call.
CEO Chris Tomasso said the company "delivered our revenue plan, grew comparable restaurant sales against our toughest year-over-year comparison, and increased total revenue 10.7%." Tomasso’s remarks link sales growth at comparable restaurants with the year-over-year comparison he described as the toughest of the year, alongside the increase in total revenue. Still, traffic at comparable locations fell 1.9% during the quarter, even as sales at those restaurants rose 1.0%. These figures show two different trends in performance: higher sales at existing locations, alongside a decline in their customer count. Total revenue grew 10.7% year over year as the company expanded its restaurant count.
First Watch opened 16 restaurants in 11 states during the quarter, bringing its network to 681 restaurants in 33 states as of September 27, 2026. The network includes 601 company-owned restaurants and 80 franchise-owned restaurants, according to the earnings release. The new openings came alongside growth in total revenue and declining traffic at comparable restaurants, making network expansion one element of the quarterly performance context. The company recorded revenue of $349.9 million in the third quarter, compared with $316.0 million in the same quarter a year earlier. Comparable-restaurant sales grew 1.0%, while revenue grew 10.7%.
The company’s second-quarter 2026 results provide an earlier comparison: comparable-restaurant sales rose 3.4%, revenue increased 15.2%, and net income was $2.3 million. In the third quarter, comparable-restaurant sales growth slowed to 1.0% and revenue growth was 10.7%, while net income rose to $4.8 million from $3.0 million in the same period of 2025. The second-quarter figures cover a different period and are not a year-over-year comparison for the third quarter; they place the results of consecutive quarters in a shared context. Traffic at comparable restaurants also differed from total revenue growth, falling 1.9% in the third quarter despite the increase in revenue. The comparison between growth at existing locations and expansion in the restaurant count remains relevant to interpreting these indicators.
The company raised its adjusted earnings before interest, taxes, depreciation and amortization outlook for fiscal 2026 to approximately $136 million and maintained its revenue growth outlook at approximately 13.5%. The outlook places the annual revenue trajectory alongside the third-quarter result, which recorded year-over-year growth of 10.7%. It follows an increase in net income to $4.8 million during the quarter, with comparable-restaurant sales up 1.0% and traffic down 1.9%. The company scheduled a call to discuss its third-quarter results for November 3 at 8:00 a.m. Eastern time. The call provides a later opportunity to discuss the results, while the revised fiscal 2026 outlook represents the company’s announced framework for the coming period.