First Watch Stock Slips as Executives Warn of Egg Costs Hurting Margins
Increased commodity costs can squeeze margins, impacting profit potential. Similar trends previously led to stock declines.
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Increased commodity costs can squeeze margins, impacting profit potential. Similar trends previously led to stock declines.
What happened, with direct paths to the underlying reporting
FWRG shares fell after warnings of commodity price pressures. High egg prices may hurt margins; no plans for surcharges. Executives expect high single-digit percentage commodity inflation this year. EPS of $0.01 and $263.3 million revenue align with estimates. Same-restaurant sales expected to grow in positive low single digits.
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