First Watch Restaurant Group 3Q 2026: Revenue $349.86M, EPS $0.08— 10-Q Summary

What happened

First Watch Restaurant Group reported third-quarter 2026 revenue of $349.86 million, up 10.7% from a year earlier. Net income rose to $4.79 million from $2.99 million, and diluted earnings per share, which means profit per share, rose to $0.08 from $0.05.

Confirmed

Global impact / market context

Revenue and profit growth show the restaurant chain is adding sales even as fewer customers visit each store. Traffic fell 1.9%, so growth relies on new locations and higher spending per visit, which matters for whether profit gains can continue without opening restaurants.

Analyst inference

The company opened 16 restaurants and now runs 681 locations, so much of its growth comes from new stores rather than existing ones. Management expects roughly 2.0% same-restaurant sales growth for the full year, with wage inflation near 4.0% and flat commodity costs.

Analyst inference

What to watch

1. Same-restaurant sales, which means sales at stores open a year or more, rose 1.0% while customer traffic declined 1.9%, showing growth depends on higher spending per visit rather than more customers. Confirmed
2. Watch whether management's expected full-year same-restaurant sales growth of about 2.0% is met, since slower existing-store sales would leave new restaurant openings carrying more of the revenue growth. Proposed
3. Wage inflation near 4.0% with flat commodity costs could pressure restaurant-level profit per sale, so watch whether sales growth outpaces labor costs and supports continued net income gains. Analyst inference

Evidence

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