Market News
Breakfast restaurant chain First Watch Restaurant Group (NASDAQ:FWRG) is set to announce its earnings results tomorrow morning. Here’s a look at what investors can expect.
Recent Performance
Last quarter, First Watch exceeded analysts’ revenue expectations, reporting $316 million in revenue, which marks a 25.6% increase year-over-year. The company also significantly outperformed analysts’ estimates for same-store sales and EBITDA.
Expectations for Tomorrow
This quarter, analysts forecast a revenue growth of 20.1% year-over-year for First Watch, an improvement from the 7.6% increase recorded in the same quarter last year. Over the past 30 days, analysts covering the company have largely reaffirmed their estimates, indicating a steady outlook as earnings approach.
Peer Insights
Looking at First Watch’s competitors in the sit-down dining sector, several have recently reported their Q4 results. Brinker International achieved a 6.9% year-on-year revenue growth, surpassing analysts’ expectations by 2.9%. Conversely, Texas Roadhouse reported a 3.1% revenue increase, falling short of estimates by 0.8%. Following their results, Brinker International saw a stock increase of 2.1%, while Texas Roadhouse experienced a decline of 2%.
Stock Performance Ahead of Earnings
Investors in the sit-down dining segment have remained steady leading into earnings, with share prices holding relatively flat over the past month. First Watch’s stock price has also remained unchanged during this period, currently trading at $15.94, compared to an average analyst price target of $22.18.
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