First Watch Restaurant Group (NASDAQ:FWRG) Reports Mixed Q2 2025 Earnings with Revenue Growth but EPS Miss

First Watch Restaurant Group (NASDAQ:FWRG) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. While revenue growth remained robust, earnings per share (EPS) fell short of estimates, contributing to a pre-market decline of approximately 2.4%.

Key Financial Highlights vs. Estimates

• Revenue: The company posted $307.9 million in sales, marking a 19.1% year-over-year increase. This figure was slightly below the consensus estimate of $312.7 million.
• Earnings Per Share (EPS): GAAP EPS came in at $0.03, missing the $0.0538 forecast by analysts. The lower-than-expected profitability may have contributed to the negative pre-market reaction.
• Adjusted EBITDA: Despite the EPS miss, adjusted EBITDA reached $30.4 million, prompting management to raise its full-year guidance—a positive signal for operational efficiency.

Market Reaction & Recent Performance

Following the earnings release, FWRG shares dipped in pre-market trading, reflecting investor disappointment over the earnings miss. However, the stock has shown resilience over the past two weeks, gaining 1.4%, suggesting some optimism ahead of the report. Longer-term performance remains mixed, with a 1% decline over the past month.

Operational & Strategic Developments

The company continues to expand aggressively, opening 17 new system-wide restaurants across eight states and reaching a milestone of 600 locations. This growth aligns with its strategy to capitalize on the strong demand for its breakfast, brunch, and lunch offerings.

Outlook vs. Analyst Expectations

Management raised its full-year adjusted EBITDA guidance, signaling confidence in profitability despite the Q2 EPS shortfall. Analysts currently project full-year 2025 revenue at $1.236 billion and EPS at $0.164, while Q3 2025 estimates stand at $310.4 million in sales and $0.0538 EPS. The company’s updated outlook suggests it may outperform these forecasts if expansion and cost controls remain on track.

For a deeper dive into First Watch’s earnings and future estimates, review the detailed breakdown here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.