First Watch Restaurant Group has reported a strong start to the year, with total revenue for the first quarter (Q1) of 2026 reaching $331 million. This represents a significant increase of 17.3% compared to the $282.2 million recorded in Q1 2025. However, despite the revenue growth, the company also saw a rise in net loss for the quarter, with a loss of $2.7 million compared to $0.8 million in Q1 2025.
One of the key highlights for First Watch in Q1 2026 was the increase in same-restaurant sales by 2.8%, indicating higher sales per location despite a 2% decline in same-restaurant traffic. The restaurant chain’s system-wide sales across the brand also saw a significant year-on-year increase of 13.8%, reaching $367.6 million in the latest quarter.
In terms of operating margins, the company saw a slight decrease in income from operations margin to 0.3% in Q1 2026, down from 0.4% in the prior-year quarter. However, the restaurant-level operating profit margin improved to 18.5%, compared to 16.5% in Q1 2025. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) also increased to $27.8 million, up from $22.8 million a year earlier.
First Watch continued its rapid unit growth during the quarter, opening 16 new system-wide locations across 11 US states. At the end of Q1 2026, the chain operated 648 restaurants system-wide, with 572 being company-owned and 76 franchised, spanning 32 states.
First Watch President and CEO Chris Tomasso expressed pride in the company’s solid results, citing the same-restaurant sales growth and expanded restaurant-level operating profit. He also highlighted the continued unit growth, with 67 new restaurants opened over the past 12 months.
Looking ahead, First Watch has revised its full-year 2026 outlook, projecting total revenue growth in the range of 12% to 14%. Same-restaurant sales are expected to grow by 1% to 3% over the full year, with 59 to 63 net new system-wide restaurants anticipated for fiscal year 2026. Planned capital expenditure for the year is expected to be between $150 million and $160 million.
In conclusion, First Watch’s strong performance in Q1 2026 reflects the company’s continued growth and success in the competitive restaurant industry. With a focus on expanding its footprint and driving sales, First Watch is poised for further growth and success in the coming year.
This article was originally published by Verdict Food Service and has been rewritten for presentation on a WordPress platform.
