First Watch reports 20% sales increase, profit drop in second quarter

Laura Finaldi, Sarasota Herald-Tribune
·2 min read
First Watch Restaurant Group reported sales growth of 20% in its second quarter earnings released this week.
First Watch Restaurant Group reported sales growth of 20% in its second quarter earnings released this week.

Sales at First Watch Restaurant Group soared by 20% in the second quarter, while the Bradenton company also saw a $1.1 million drop in its profit.

The breakfast, lunch and brunch restaurant chain, which has more than 445 locations in 28 states, said that it earned $2.7 million in net income in the second quarter, a drop from $3.8 million in the same time period the year before.

However, revenue was up 19.8%, from $154 million to $184.5 million this year, and system-wide sales increased by 20% to $231.2 million.

PHOTOS: See First Watch's new corporate headquarters

From May: First Watch posts $4.6 million profit in first quarter financials

Chris Tomasso, the company's president and CEO, said that the company's performance reaffirms it as one of the most consistent, best-performing concepts in the restaurant industry.

“As we look ahead, we intend to continue driving profitable growth while investing further in both our new restaurant development and our people," Tomasso said.

Same restaurant sales were up 13.4% in the second quarter, traffic was up 8.1% and First Watch opened nine system-wide restaurants during the reporting period, including five company-owned locations.

For fiscal year 2022, First Watch said it expects to see a 20% growth in revenue over 2021 and same restaurant sales growth in the range of 13-15%. The company also said it expects capital expenditures to fall in the $60-$70 million range, primarily for investments in new restaurant projects, planned remodels and new in-restaurant technology.

About 48 new restaurants are also expected to open this fiscal year, including between 30 and 35 company-owned and eight to 13 franchise-owned locations, the company said.

After its earnings press release hit the wires Tuesday morning, shares of First Watch opened at $18.45 on the Nasdaq and closed for the day at $16.82.

First Watch, which was founded in 1983 and has its corporate headquarters at 8725 Pendery Place, went public in October 2021.

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This article originally appeared on Sarasota Herald-Tribune: Bradenton-based First Watch reports sales increase in second quarter