Shares of First Watch Restaurant Group, Inc. (FWRG) tumbled 8.11% in pre-market trading after the company reported disappointing first-quarter results for 2025. The casual dining chain missed analyst estimates on key financial metrics, raising concerns about its near-term performance.

First Watch reported a net loss of $0.01 per share for Q1, falling short of the $0.04 earnings per share analysts had expected. Revenue came in at $282.24 million, slightly below the estimated $283.28 million. The company's adjusted EBITDA of $22.753 million also missed the mark, coming in lower than the $24.9 million forecast by analysts. The adjusted EBITDA margin stood at 8.1%, reflecting pressure on the company's profitability.

Despite the weak quarterly results, First Watch Restaurant Group is projecting total revenue growth of about 20% for the 52-week fiscal year ending December 28, 2025. This forward-looking guidance suggests that the company expects to see improvements in its performance as the year progresses. However, investors seem to be focusing on the immediate disappointment, as reflected in the significant pre-market stock decline.