Shares of First Watch Restaurant Group, Inc. (NASDAQ: FWRG) surged 10.41% in pre-market trading on Tuesday following the release of its impressive third-quarter 2025 financial results and an upgraded full-year outlook.

The company reported total revenues of $316.0 million for Q3 2025, marking a 25.6% increase from the same period last year and surpassing analyst estimates of $308.2 million. Same-restaurant sales growth came in strong at 7.1%, driven by a 2.6% increase in same-restaurant traffic. Adjusted EBITDA reached $34.1 million, beating expectations of $32.2 million and showing significant improvement from $25.6 million in the prior year's quarter. Net income for the period was $3.0 million, or $0.05 per diluted share, up from $2.1 million, or $0.03 per diluted share, in Q3 2024.

First Watch also raised its guidance for fiscal year 2025, projecting total revenue growth of 20.0%-21.0% and adjusted EBITDA of approximately $123 million. The company's expansion plans remain robust, with 21 new system-wide restaurants opened in 14 states during the quarter. For the full year, First Watch aims to open 60 to 61 new system-wide restaurants, net of 3 company-owned restaurant closures. CEO Chris Tomasso expressed confidence in the company's performance, stating, "Our strong third quarter results and sequential year-to-date improvement in same restaurant traffic growth, same restaurant sales growth, and restaurant-level operating profit margin, are testament to the enduring strength of our business model and the efforts of our teams."