First Watch reports 17.3% revenue growth but posts $2.7M net loss in Q1 2026, opening 16 new restaurants.

First Watch Restaurant Group reported a 17.3% increase in total revenues to $331 million for Q1 2026, driven by 16 new restaurant openings across 11 states and 2.8% same-restaurant sales growth. Despite higher revenues and an improved restaurant-level operating profit margin of 18.5%, the company posted a net loss of $2.7 million, wider than the previous year's $0.8 million loss. Adjusted EBITDA rose to $27.8 million, and the company reaffirmed its full-year revenue growth outlook of 12-14% and raised its adjusted EBITDA guidance. First Watch plans to open 59 to 63 net new restaurants in 2026, investing $150-$160 million primarily in new locations and remodels.