First Watch revenue tops $350M as chain expands to 681 locations

Customers of the Bradenton-based breakfast chain can expect more nearby locations this year, as First Watch announced Tuesday that it opened 16 new restaurants across 11 states during the third quarter. This expansion brings the company's total nationwide footprint to 681 locations.

Financial results show the company generated $349.9 million in revenue for the quarter, marking a 10.7% increase over the same period last year. That figure represents approximately $33.9 million in additional sales compared to the $316 million reported in the prior year quarter. Including sales from franchised locations, system-wide sales reached $391.2 million, up 10.9% from $352.7 million a year earlier.

The company now operates 601 company-owned restaurants and 80 franchised locations across 33 states. While total revenue rose, customer traffic at established restaurants declined by 1.9%. However, comparable restaurant sales increased by 1%, indicating that higher spending per visit helped offset the lower number of visitors.

Profitability metrics showed mixed results. Net income rose to $4.8 million from $3 million in the same quarter last year, and earnings per diluted share increased to 8 cents from 5 cents. Adjusted earnings before interest, taxes, depreciation, and amortization climbed to $39.7 million, up from $34.1 million. This performance exceeded management expectations, prompting the company to raise its full-year adjusted earnings outlook to approximately $136 million, the upper end of its previous guidance range.

Chris Tomasso, the company's president and CEO, noted that teams are executing at a high level, driving adjusted earnings growth ahead of expectations. He stated this gives the company confidence in its raised full-year outlook. At the restaurant level, operating profit increased to $67.3 million from $61.7 million, though the margin declined slightly to 19.4% from 19.7%. The overall operating profit margin remained flat at 3.2%.

Through the first nine months of 2026, First Watch generated approximately $1.04 billion in revenue, surpassing the $906.1 million recorded in the same period last year. Net income for this period reached approximately $4.4 million, compared to $4.3 million a year earlier. The company expects full-year revenue to grow by approximately 13.5%, with comparable sales projected to increase by about 2%.

First Watch maintains its plan to add 60 net restaurants in 2026. This target consists of 53 new company-owned locations and nine franchised openings, offset by two company-owned closures. The company anticipates spending approximately $145 million on capital expenditures this year, primarily for new development and remodels.