First Watch Restaurant Group Reports 15.2% Revenue Growth in Q2 2026

First Watch Restaurant Group, Inc. reported a notable increase in financial performance for the second quarter of 2026, with total revenues rising 15.2% to $354.7 million, compared to $307.9 million in the same period last year. Restaurant sales accounted for $351.5 million, up from $305.0 million, while franchise revenues also saw an increase, reaching $3.2 million from $2.9 million. The company’s net income rose to $2.3 million, or $0.04 per diluted share, compared to $2.1 million, or $0.03 per diluted share, in the prior year. Adjusted EBITDA increased to $34.5 million from $30.4 million, reflecting a strong operational performance.

In terms of operational metrics, First Watch opened 18 new restaurants across 15 states, bringing the total to 665 system-wide restaurants, which includes 586 company-owned and 79 franchise-owned locations. However, same-restaurant sales growth was reported at 3.4%, with a slight decline in same-restaurant traffic of 0.4%. The company experienced a restaurant-level operating profit margin of 18.8%, an increase from 18.6% in the previous year, indicating improved efficiency in managing restaurant operations.

The filing also highlighted strategic developments, including the acquisition of 19 franchise-operated restaurants in 2025, which contributed to the growth in restaurant sales. The company’s employee headcount has grown to over 18,000, reflecting its expansion efforts. Additionally, First Watch has been actively managing its costs, with food and beverage costs as a percentage of restaurant sales decreasing slightly to 23.5% from 23.6% year-over-year, attributed to menu price increases and lower commodity costs for certain ingredients.

Looking ahead, First Watch anticipates annual same-restaurant sales growth to be between 1.5% to 3.0%. The company expects commodity inflation to remain low, estimating a range of zero to 1.5% for the full year. Labor costs are projected to increase by approximately 3.5% to 4.5% for the year. The company plans to invest between $145 million to $150 million in capital expenditures for 2026, primarily for new restaurant projects and remodels, funded through operational cash flow and borrowings under its credit facility. Overall, First Watch remains optimistic about its growth trajectory and operational efficiency as it continues to expand its footprint in the restaurant industry.