First Watch Restaurant Group’s total revenue for the first quarter (Q1) of 2026 was $331m, an increase of 17.3% compared to $282.2m recorded in Q1 2025.
However, for the 13-week period that ended 29 March 2026, the company’s net loss increased to $2.7m from $0.8m in Q1 2025.
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The company’s same-restaurant traffic in the quarter also declined by 2%, although same-restaurant sales rose 2.8%, indicating higher sales per location despite fewer visits.
The restaurant chain’s system-wide sales across the brand increased 13.8% year-on-year. Sales reached $367.6m in the latest quarter, versus $323m in the same quarter last year.
In Q1 2026, the company’s income from operations margin slipped to 0.3%, down from 0.4% in the prior-year quarter.
By contrast, restaurant-level operating profit margin improved to 18.5%, compared with 16.5% in Q1 2025. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased to $27.8m, up from $22.8m a year earlier.
In the latest quarter, the group opened 16 system-wide locations across 11 US states.
At the end of the quarter, the chain operated 648 restaurants system-wide. Of these, 572 were company-owned, and 76 were franchised, spanning 32 states.
First Watch president and CEO Chris Tomasso said: “I am proud of our teams for delivering solid results, exemplified by same-restaurant sales growth of 2.8% and expanded restaurant-level operating profit versus a year ago.
“Our track record of rapid unit growth continued this quarter with 16 new restaurants added, bringing to 67 the total number of new restaurants opened over the past 12 months.”
The company has revised its full-year 2026 outlook. It now projects 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. First Watch anticipates 59 to 63 net new system-wide restaurants for fiscal year 2026, with planned capital expenditure to be between $150m and $160m.
