Same-Restaurant Sales Growth of 3.4%

Total revenues increased 15.2%

Net income of $2.3 million and Adjusted EBITDA of $34.5 million

18 new System-wide restaurants opened in 15 states

BRADENTON, Fla., Aug. 04, 2026 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) ("First Watch" or the "Company"), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended June 28, 2026 ("Q2 2026").

"We delivered a strong second quarter, highlighted by Same-Restaurant Sales Growth of 3.4% driven by sequentially improving Same-Restaurant Traffic Growth, which turned positive in June," stated Chris Tomasso, CEO and President of First Watch. "This momentum underscores the enduring appeal of our differentiated brand, the discipline of our operating model and the outstanding performance of our teams across the system. I am grateful to our teams for their continued execution as we expand upon our position as the leading Daytime Dining concept."

Second Quarter 2026 Highlights:

   -- Total revenues increased 15.2% to $354.7 million as compared to $307.9 
      million in the same period of 2025 
 
   -- System-wide sales increased 14.7% to $397.0 million as compared to $346.2 
      million in the same period of 2025 
 
   -- Same-Restaurant Sales Growth of 3.4% 
 
   -- Same-Restaurant Traffic Growth of negative 0.4% 
 
   -- Income from operations margin decreased to 2.3% as compared to 2.4% in 
      the same period of 2025 
 
   -- Restaurant Level Operating Profit Margin* increased to 18.8% as compared 
      to 18.6% in the same period of 2025 
 
   -- Net income increased to $2.3 million, or $0.04 per diluted share, from 
      net income of $2.1 million, or $0.03 per diluted share, in the same 
      period of 2025 
 
   -- Adjusted EBITDA* increased to $34.5 million as compared to $30.4 million 
      in the same period of 2025 
 
   -- Opened 18 system-wide restaurants in 15 states, with 1 planned closure, 
      resulting in a total of 665 system-wide restaurants (586 company-owned 
      and 79 franchise-owned) across 33 states 

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* See Non-GAAP Financial Measures Reconciliations section below.

For additional financial information related to Q2 2026, refer to the Company's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 4, 2026, which can be accessed at https://investors.firstwatch.com in the Financials & Filings section.

Updated Outlook Fiscal Year 2026

Based upon second quarter results and current trends, the Company updated the following guidance metrics for the 52-week fiscal year ending December 27, 2026:

   -- Same-Restaurant Sales Growth of 1.5% to 3.0% 
 
   -- Total revenue growth of 12.5% to 14.0%(1) 
 
   -- Adjusted EBITDA(2) of $133.0 million to $136.0 million(1) 
 
   -- 60 to 62 net new System-wide restaurants, including 2 company-owned 
      restaurant closures (53 to 54 new company-owned restaurants and 9 to 10 
      new franchise-owned restaurants) 
 
   -- Capital expenditures of $145.0 million to $150.0 million invested 
      primarily in new restaurant projects and planned remodels(3) 

______________________

(1) Includes net impact of approximately 1% in total revenue growth and approximately $2 million in Adjusted EBITDA associated with completed acquisitions.

(2) We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, a reconciliation to the corresponding GAAP financial measure is not available without unreasonable effort.

(3) Does not include the capital outlays associated with the acquisition of franchise-owned restaurants.

Conference Call and Webcast

Chris Tomasso, Chief Executive Officer and President, and Ashlee Weisser, Chief Financial Officer, will host a conference call and webcast to discuss these financial results for Q2 2026 on August 4, 2026 at 8:00 AM ET.

Interested parties may listen to the conference call via any one of two options:

   -- Dial 201-389-0914, which will be answered by an operator 
 
   -- Join the webcast at 
      https://investors.firstwatch.com/news-and-events/events 

The webcast will be archived shortly after the call has concluded.

Definitions

The following definitions apply to these terms as used in this release:

System-wide restaurants: the total number of restaurants, including all company-owned and franchise- owned restaurants.

System-wide sales: consists of restaurant sales from our company-owned restaurants and franchise-owned restaurants. We do not recognize the restaurant sales from our franchise-owned restaurants as revenue.

Same-restaurant sales growth: the percentage change in year-over-year restaurant sales (excluding gift card breakage) for the comparable restaurant base, which we define as the number of company-owned First Watch branded restaurants open for 18 months or longer as of the beginning of the fiscal year ("Comparable Restaurant Base"). For the thirteen and twenty-six weeks ended June 28, 2026 and June 29, 2025, there were 454 restaurants and 382 restaurants, respectively, in our Comparable Restaurant Base. Measuring our same-restaurant sales growth allows management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors to provide a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of store openings, closings, and other transitional changes.

Same-restaurant traffic growth: the percentage change in year-over-year traffic counts using the Comparable Restaurant Base. Measuring our same-restaurant traffic growth allows management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors because same-restaurant traffic provides an indicator as to the development of our brand and the effectiveness of our marketing strategy.

Adjusted EBITDA: a non-GAAP measure, represents Net income (loss) before depreciation and amortization, interest expense, income taxes and items that we do not consider in our evaluation of ongoing core operating performance.

Adjusted EBITDA margin: a non-GAAP measure, represents Adjusted EBITDA as a percentage of total revenues.

Restaurant level operating profit: a non-GAAP measure, represents restaurant sales, less restaurant operating expenses, which include food and beverage costs, labor and other related expenses, other restaurant operating expenses, pre-opening expenses and occupancy expenses. Restaurant level operating profit excludes corporate-level expenses and other items that we do not consider in the evaluation of the ongoing core operating performance of our restaurants.

Restaurant level operating profit margin: a non-GAAP measure, represents Restaurant level operating profit as a percentage of restaurant sales.

About First Watch

First Watch is the leading Daytime Dining concept serving made-to-order breakfast, brunch and lunch using the freshest ingredients available. Guided by its "Follow the Sun" culinary philosophy, First Watch's chef-driven menu rotates multiple times per year to feature the highest-quality flavors at their peak, offering elevated executions of classic favorites, fresh juices like the Kale Tonic, and fan favorites such as the Lemon Ricotta Pancakes, Quinoa Power Bowl and signature Million Dollar Bacon. For every kid's meal served, First Watch proudly donates a portion to organizations and causes making a positive impact in our communities -- raising approximately $2.3 million to date. A recipient of many "Best Breakfast" and "Best Brunch" awards, First Watch was voted #1 Best Breakfast by Newsweek's Readers' Choice Awards 2025, and also named 2025 and 2024's #1 Most Loved Workplace$(R)$ in America by the Best Practice Institute - an accolade most recently featured in The Wall Street Journal - after appearing on the list in 2022 and 2023, as well. With a commitment to quality, hospitality and community, First Watch is redefining Daytime Dining across more than 660 restaurants in 33 states. For more information, visit www.firstwatch.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements can be identified by words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance and statements discussing our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result,