First Watch Restaurant Group Raises Long-Term EBITDA Guidance Following Q3 2026 Results
First Watch Restaurant Group (FWRG) reported third-quarter 2026 revenue growth of 10.7% to $349.9 million, outperforming broader restaurant sector trends despite soft traffic. The company successfully leveraged operational efficiencies and top-line gains to protect profitability, reporting a 1% increase in same-restaurant sales during the quarter. Driven by confidence in current initiatives, management raised its long-term annual adjusted EBITDA growth target through 2028 to greater than 15%, up from the previous guidance of 11% to 14%. To drive future growth, the company is testing new digital and television marketing channels, including a pilot with TikTok GO to convert online engagement into restaurant visits. Looking ahead, First Watch plans to open approximately 60 net-new restaurants in 2026 and 55 in 2027. However, management intends to maintain capital flexibility beyond 2027 to navigate high interest rates and floating-rate borrowing costs, focusing on sustained store productivity and positive free cash flow.
Tickers: $FWRG
Topics: earnings report EBITDA guidance restaurant industry revenue growth