Breakfast restaurant chain First Watch Restaurant Group (NASDAQ: FWRG) will be reporting earnings this Tuesday morning. Here’s what you need to know.
First Watch met analysts’ revenue expectations last quarter, reporting revenues of $316.4 million, up 20.2% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations significantly.
Is First Watch a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting First Watch’s revenue to grow 16.8% year on year, in line with the 16.4% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. First Watch has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at First Watch’s peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.5%, and The Cheesecake Factory reported revenues up 5.6%, topping estimates by 1.5%. Kura Sushi traded down 17.8% following the results while The Cheesecake Factory’s stock price was unchanged.
Read our full analysis of Kura Sushi’s results here and The Cheesecake Factory’s results here.
There has been positive sentiment among investors in the sit-down dining segment, with share prices up 3.1% on average over the last month. First Watch is up 15.2% during the same time and is heading into earnings with an average analyst price target of $19.33 (compared to the current share price of $13.09).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
