First Watch Restaurant Group, Inc. reported a significant increase in financial performance for the fiscal year ending December 28, 2025, with total revenues rising by 20.3% to $1.2 billion, compared to $1.0 billion in the previous year. System-wide sales also grew, reaching $1.4 billion, up from $1.2 billion in 2024. The company achieved a same-restaurant sales growth of 3.6% and a slight increase in same-restaurant traffic of 0.5%. However, income from operations decreased to $27.5 million from $38.9 million, resulting in an operating margin decline to 2.3% from 3.9% in 2024. Despite these challenges, net income increased to $19.4 million from $18.9 million, reflecting a net income margin of 1.6%.
In terms of strategic developments, First Watch opened 64 new restaurants in 2025, comprising 55 company-owned and 9 franchise-owned locations, bringing the total to 633 restaurants across 32 states. The company also acquired 19 franchise-operated restaurants, enhancing its operational footprint. The average unit volume for restaurants is projected to reach $2.3 million in 2026, supported by a focus on operational excellence and a commitment to a fresh, evolving menu. The company’s employee headcount exceeded 17,500, reflecting its growth and operational needs.
Operationally, First Watch emphasized its "You First" culture, which prioritizes employee satisfaction and customer service. The company has been recognized as a Top 100 Most Loved Workplace for four consecutive years, with a focus on employee engagement and retention strategies. The implementation of technology enhancements, such as pay-at-the-table options and improved customer-facing platforms, has contributed to increased customer engagement, with off-premises sales accounting for 19% of total restaurant sales in 2025, up from 17.5% in 2024.
Looking ahead, First Watch anticipates continued growth, with plans to open between 59 to 63 new system-wide restaurants in 2026. The company expects same-restaurant sales growth to range between 1% and 3% for the upcoming year, despite facing commodity inflation projected at 1% to 3%. The management remains focused on leveraging its operational strengths and expanding its market presence while navigating the challenges posed by inflation and competitive pressures in the restaurant industry.
About First Watch Restaurant Group, Inc.
First Watch Restaurant Group, Inc. operates a chain of daytime dining restaurants specializing in made-to-order breakfast, brunch, and lunch using fresh ingredients. With a focus on quality, innovation, and a people-first culture, it serves customers across the U.S. through company-owned and franchise locations. The company emphasizes operational excellence, menu freshness, employee development, and community engagement to deliver a differentiated dining experience.
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