Q4 Earnings Roundup: First Watch (NASDAQ:FWRG) And The Rest Of The Sit-Down Dining Segment
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at First Watch (NASDAQ:FWRG) and its peers.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 2.4% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.1% since the latest earnings results.
Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.
First Watch reported revenues of $263.3 million, up 7.6% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“2024 was a pivotal year as we surpassed $1 billion in total revenues and $100 million in adjusted EBITDA for the first time. These milestones were supported and augmented by our teams’ operational acuity, successfully enhancing a variety of critical KPIs including labor efficiency, ticket times and customer experience scores, among others,” said Chris Tomasso, First Watch CEO and President.
First Watch Total Revenue
The stock is down 7.5% since reporting and currently trades at $16.74.
Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.36 billion, up 26.5% year on year, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Brinker International Total Revenue
Brinker International pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.1% since reporting. It currently trades at $145.20.
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin’ Brands reported revenues of $972 million, down 18.6% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
Bloomin’ Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 38.2% since the results and currently trades at $7.35.
Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.
Denny’s reported revenues of $114.7 million, flat year on year. This number missed analysts’ expectations by 1.2%. Overall, it was a softer quarter as it also recorded full-year EBITDA guidance missing analysts’ expectations.
The stock is down 43.2% since reporting and currently trades at $3.82.
Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.
The ONE Group reported revenues of $221.9 million, up 147% year on year. This result beat analysts’ expectations by 1.9%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.
The ONE Group achieved the fastest revenue growth among its peers. The stock is up 3.1% since reporting and currently trades at $2.99.
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