First Watch Posts Double-Digit Revenue Growth and Expands Footprint as Profit Margins Climb in Q3 2025

Standout Quarter: Revenue Soars, Profitability Strengthens, and Expansion Accelerates

First Watch Restaurant Group, a leader in daytime dining, just released its Q3 2025 results—and the numbers underscore impressive momentum across the business. The company delivered a 25.6% year-over-year increase in total revenues to $316.02 million, while opening 21 new restaurants in 14 states. System-wide sales jumped 20.9%, powered by same-restaurant sales growth of 7.1% and a solid 2.6% increase in guest traffic.

Improved Margins Point to Operational Strength

Profitability is also moving in the right direction. The income from operations margin improved to 3.2%, up from 2.5% last year. More importantly for investors watching core restaurant performance, the restaurant-level operating profit margin rose to 19.7%, compared to 18.9% a year ago. Adjusted EBITDA grew to $34.1 million (versus $25.6 million), and net income reached $3.0 million, up from $2.1 million last year.

Expansion and Updated Outlook Reflect Confidence

The company added 21 net new locations during the quarter, closing only one, and now operates 620 restaurants across 32 states (548 company-owned, 72 franchised). Leadership raised guidance to the high end of their prior range for FY25 Adjusted EBITDA at approximately $123 million and expects total revenue growth of 20–21% for the year. Plans are in place for 60–61 new system-wide openings by year-end, highlighting management's confidence in continued robust demand and market share expansion.

Key Takeaways for Investors: Strength in Both Top and Bottom Line

First Watch continues to demonstrate strength with growth across sales, traffic, and margins—even as it pours capital into aggressive expansion. For shareholders and market watchers, the Q3 report shows that First Watch's model remains resilient, and the outlook points to a finish at the high end of expectations. While competitive and macroeconomic risks persist, the operational trends and guidance upgrades keep First Watch on the radar for anyone tracking high-growth, quality restaurant brands.

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