Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) will be reporting results tomorrow morning. Here's what to look for.
First Watch missed analysts' revenue expectations by 1.1% last quarter, reporting revenues of $242.4 million, up 14.7% year on year. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.
Is First Watch a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting First Watch's revenue to grow 19.1% year on year to $257.6 million, improving from the 17.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Watch has missed Wall Street's revenue estimates twice over the last two years.
Looking at First Watch's peers in the sit-down dining segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Roadhouse delivered year-on-year revenue growth of 14.5%, meeting analysts' expectations, and The Cheesecake Factory reported revenues up 4.4%, in line with consensus estimates. Texas Roadhouse traded up 2% following the results while The Cheesecake Factory was down 5.4%.
Read our full analysis of Texas Roadhouse's results here and The Cheesecake Factory's results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat over the last month. First Watch is down 9.9% during the same time and is heading into earnings with an average analyst price target of $23.3 (compared to the current share price of $15.03).
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