First Watch (FWRG) Reports Earnings Tomorrow. What To Expect

Max Juang /
2024/03/04 2:01 am EST

Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) will be reporting results tomorrow before the bell. Here's what you need to know.

Last quarter First Watch reported revenues of $219.2 million, up 17.3% year on year, beating analyst revenue expectations by 1.2%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Is First Watch buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting First Watch's revenue to grow 27.7% year on year to $237.2 million, improving on the 14.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

First Watch Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.1%.

Looking at First Watch's peers in the sit-down dining segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Cracker Barrel delivered top-line growth of 0.2% year on year, beating analyst estimates by 1.9% and The Cheesecake Factory reported revenue decline of 1.8% year on year, exceeding estimates by 0.1%. Cracker Barrel traded up 1.3% on the results, and The Cheesecake Factory was up 1.9%.

Read our full analysis of Cracker Barrel's results here and The Cheesecake Factory's results here.

There has been positive sentiment among investors in the sit-down dining segment, with the stocks up on average 5.6% over the last month. First Watch is up 18.3% during the same time, and is heading into the earnings with analyst price target of $24, compared to share price of $25.35.

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