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First Watch reported another quarter of growth, with a 3.4% increase in same-store sales, driven largely by an expanded marketing strategy focused on improving overall brand awareness. The Bradenton, Florida-based full-service breakfast company also benefited from a 3.7% pricing increase for the quarter, as well as commodities deflation as some parts of the supply chain stabilize.
First Watch also noted a pattern of traffic improvement, particularly in June, though overall traffic was flat for the quarter. New First Watch CFO Ashley Weisser, who was promoted in June, said that the 0.4% dip in traffic was partially due to cannibalization, as the company opens more stores and customers visit new locations, but don't leave the brand.
"Benefits from our marketing investments were a significant contributor to our Q2 performance," CEO Chris Tomasso said during Tuesday's earnings call for the quarter ended June 28. "Since implementing an expanded marketing strategy early last year, brand awareness has been building, and we believe contributing to our improved same restaurant traffic trends and overall same restaurant sales growth, our marketing objectives are focused on driving at least one more visit from existing customers, while also positioning First Watch squarely in the consideration set for new customers."
Beyond marketing, the company noted the positive performance of its LTO menu, including the Chimichurri Steak and Eggs Hash, which ran from January through May and became its best-selling LTO item of all time.
#first #quarter
First Watch reported another quarter of growth, with a 3.4% increase in same-store sales, driven largely by an expanded marketing strategy focused on improving overall brand awareness. The Bradenton, Florida-based full-service breakfast company also benefited from a 3.7% pricing increase for the quarter, as well as commodities deflation as some parts of the supply chain stabilize.
First Watch also noted a pattern of traffic improvement, particularly in June, though overall traffic was flat for the quarter. New First Watch CFO Ashley Weisser, who was promoted in June, said that the 0.4% dip in traffic was partially due to cannibalization, as the company opens more stores and customers visit new locations, but don't leave the brand.
"Benefits from our marketing investments were a significant contributor to our Q2 performance," CEO Chris Tomasso said during Tuesday's earnings call for the quarter ended June 28. "Since implementing an expanded marketing strategy early last year, brand awareness has been building, and we believe contributing to our improved same restaurant traffic trends and overall same restaurant sales growth, our marketing objectives are focused on driving at least one more visit from existing customers, while also positioning First Watch squarely in the consideration set for new customers."
Beyond marketing, the company noted the positive performance of its LTO menu, including the Chimichurri Steak and Eggs Hash, which ran from January through May and became its best-selling LTO item of all time.
#first #quarter
3 months ago
