First Watch Restaurant : Q3 2023 Earnings Conference Call Presentation

Welcome to First Watch

Supplemental Information

Q3 2023

November 1, 2023

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

Forward-Looking Statements

In addition to historical information, this presentation may contain a number of "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this presentation in the context of the risks and uncertainties disclosed our filings with the

Securities and Exchange Commission (the "SEC"), accessible on the SEC's website at www.sec.gov and the Investors Relations section of the Company's website at https://investors.firstwatch.com/financial-information/sec-filings. Important

factors that could cause actual results to differ materially from those in the forward-looking statements include the following: uncertainty regarding ongoing hostility between Russia and Ukraine, renewed conflict in the Middle East and the related impact on macroeconomic conditions, including inflation, as a result of such conflict or other related events; our vulnerability to changes in economic conditions and consumer preferences; our inability to successfully open new restaurants or establish new markets; our inability to effectively manage our growth; adverse effects of the COVID-19 pandemic or other infectious diseases; potential negative impacts on sales at our and our franchisees' restaurants as a result of our opening new restaurants; a decline in visitors to any of the retail centers, lifestyle centers, or entertainment centers where our restaurants are located; lower than expected same-restaurant sales growth; unsuccessful marketing programs and limited time new offerings; changes in the cost of food; unprofitability or closure of new restaurants or lower than previously experienced performance in existing restaurants; our inability to compete effectively for customers; unsuccessful financial performance of our franchisees; our limited control over our franchisees' operations; our inability to maintain good relationships with our franchisees; conflicts of interest with our franchisees; the geographic concentration of our system-wide restaurant base in the southeast portion of the United States; damage to our reputation and negative publicity; our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media; our limited number of suppliers and distributors for several of our frequently used ingredients and shortages or disruptions in the supply or delivery of such ingredients; information technology system failures or breaches of our network security; our failure to comply with federal and state laws and regulations relating to privacy, data protection, advertising and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection, advertising and consumer protection; our potential liability with our gift cards under the property laws of some states; our failure to enforce and maintain our trademarks and protect our other intellectual property; litigation with respect to intellectual property assets; our dependence on our executive officers and certain other key employees; our inability to identify, hire, train and retain qualified individuals for our workforce; our failure to obtain or to properly verify the employment eligibility of our employees; our failure to maintain our corporate culture as we grow; unionization activities among our employees; employment and labor law proceedings; labor shortages or increased labor costs or health care costs; risks associated with leasing property subject to long-term and non-cancelable leases; risks related to our sale of alcoholic beverages; costly and complex compliance with federal, state and local laws; changes in accounting principles applicable to us; our vulnerability to natural disasters, unusual weather conditions, pandemic outbreaks, political events, war and terrorism; our inability to secure additional capital to support business growth; our level of indebtedness; failure to comply with covenants under our credit facility; and the interests of our majority stockholder may differ from those of public stockholders.

Non-GAAP Financial Measures (Unaudited)

To supplement the consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we use the following non-GAAP measures, which present operating results on an adjusted basis: (i) Adjusted EBITDA, (ii) Adjusted EBITDA margin, (iii) Restaurant level operating profit and (iv) Restaurant level operating profit margin. Our presentation of these non-GAAP measures includes isolating the effects of some items that are either nonrecurring in nature or vary from period to period without any correlation to our ongoing core operating performance. These supplemental measures of performance are not required by or presented in accordance with GAAP. Management believes these non-GAAP measures provide investors with additional visibility into our operations, facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance, help to identify operational trends and allow for greater transparency with respect to key metrics used by management in our financial and operational decision making. Our non-GAAP measures may not be comparable to similarly titled measures used by other companies and have important limitations as analytical tools. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP as they may not provide a complete understanding of our performance. These non-GAAP measures should be reviewed in conjunction with our consolidated financial statements prepared in accordance with GAAP.

This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities.

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GOOD MORNING!

We are First Watch.

We're the leaders of the Daytime Dining category - a segment comprised of culinary-driven concepts operating exclusively during daytime hours. Our performance and successes are achieved during one 7½-hour shift, from 7 a.m. to 2:30 p.m.

We serve made-to-order breakfast, brunch and lunch using fresh ingredients, and our culture is built around a simple, people-focused mission: "You First."

Our elevated offering capitalizes on three long-term consumer trends: the growing morning meal occasion, an increasing demand for fresh, healthy food and the heightened importance of on-demand dining.

We serve a broad mix of customers of diverse backgrounds, from millennials to baby boomers.

Since 1983, we have delivered sales and unit growth as a result of our broad brand appeal. At the end of the third quarter, we operated 505 system-wide restaurants in 29 states, and we believe we're just getting started.

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Q3 2023

Performance and Commentary

Q3 2023 HIGHLIGHTS

Highlights for Q3 2023 compared to Q3 2022*:

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Total revenues increased 17.3% to $219.2 million in Q3 2023 from $186.9 million in Q3 2022 System-wide sales increased 14.9% to $270.3 million in Q3 2023 from $235.2 million in Q3 2022 Same-restaurant sales growth of 4.8% (+38.8% relative to the third quarter of 2019**) Same-restaurant traffic decline of 1.9% (+6.5% relative to the third quarter of 2019**)

Income from operations margin increased to 3.6% during Q3 2023 from 1.4% in Q3 2022 Restaurant level operating profit margin*** increased to 18.7% in Q3 2023 from 17.3% in Q3 2022

Net income increased to $5.4 million, or $0.09 per diluted share, in Q3 2023 from $46.0 thousand in Q3 2022 Adjusted EBITDA*** increased to $21.6 million in Q3 2023 from $17.0 million in Q3 2022

Opened 13 system-wide restaurants (10 company-owned and 3 franchise-owned) across 10 states and acquired 11 operating franchise- owned restaurants, resulting in a total of 505 system-wide restaurants (402 company-owned and 103 franchise-owned) across 29 states

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• Thirteen weeks ended September 25, 2022 ("Q3 2022")
• Comparison to the thirteen weeks ended September 29, 2019 ("Q3 2019") is presented for enhanced comparability due to the economic impact of COVID-19
• See "Non-GAAP Financial Measures Reconciliations" below

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"First Watch delivered impressive Q3 revenue and earnings results. We grew share while delivering total revenue growth of 17.3%, same-restaurant sales growth of 4.8% and Adjusted EBITDA growth of more than 25.0%.

The ability of our teams to consistently execute at a high level, coupled with our strong brand positioning, underpins my confidence in our potential to quadruple our restaurant count and successfully navigate within virtually any economic environment."

Chris Tomasso, First Watch CEO and President

A TASTE OF Q2 & Q3

Summer Seasonal Menu | Jun. 5 - Aug 13

Strawberry Tres Leches

French Toast

Thick-cut,custard-dipped challah bread griddled and topped with fresh strawberries, sweetened condensed milk, warm dulce de leche, whipped cream and spiced gingerbread cookie crumbles and lightly dusted with powdered cinnamon sugar.

Carnitas Breakfast

Tostadas

Savory hand-pulled carnitas, Cheddar and Monterey Jack, seasoned black beans and two basted cage-free eggs atop two crispy corn tostadas and topped

with white queso, fresh sliced

avocado and house-made roasted

corn salsa.

Lone Star Brisket Hash	Watermelon Wake-Up
Smoked, hand-pulled brisket and	Watermelon, pineapple, lime
house-pickled sweet peppers in a
and mint.
potato hash, topped with two
cage-free eggs any style, Cheddar
and Monterey Jack, fresh
smashed avocado, house-made
pico de gallo, chipotle aioli and
scallions. Served with two warm
wheat-corn tortillas.

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A TASTE OF Q3 & Q4

Fall Seasonal Menu | August 21 - October 22

MILLION DOLLAR HARVEST	PUMPKIN PANCAKE
HASH	BREAKFAST
Freshly seasoned potatoes with	Two cage-free eggs cooked any
Million Dollar Bacon, house-roasted	style plus one of our signature
sweet potatoes and Crimini	spiced Pumpkin Pancakes and a
mushrooms, kale and Monterey Jack	Jones Dairy Farm grilled all-
topped with two cage-free eggs	natural savory chicken sausage
cooked any style, herbed Goat	patty.
cheese, lemon-dressed arugula and
drizzled with Mike's Hot Honey.

BUTTERNUT SQUASH

BISQUE

Rich and creamy butternut squash soup sweetened with carrot and a touch of nutmeg. Garnished with all-natural sour cream and fresh herbs.

MINT MOCHA COFFEE

Chocolate and mint topped with a sweet cream cold foam and mini Ghirardelli dark chocolate chips.

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OUTLOOK

Outlook for Fiscal Year 2023:

The Company updates its guidance for the 53-week fiscal year ended December 31, 2023:

• Same-restaurant sales growth in the range of 7.0% to 8.0% with generally flat same-restaurant traffic growth

• Total revenue growth in the range of 20.0% to 21.0%(1)

• Adjusted EBITDA* in the range of $91.0 million to $92.0 million(1)

• Blended tax rate in the range of 26.0% to 28.0%

• Total of 49-52 new system-wide restaurants, net of 1 company-owned restaurant closure (37 to 39 new company-owned restaurants and 13 to 14 new franchise-owned restaurants)

• Capital expenditures in the range of $85.0 million to $90.0 million invested primarily in new restaurant projects and planned remodels(2)

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1. Includes approximately 2.5% in total revenue growth and approximately $3.0 million in Adjusted EBITDA associated with 17 completed and 6 pending franchise-owned restaurant acquisitions
2. Does not include the capital outlays associated with the acquisition of franchise-owned restaurants

Long Term Outlook:

The Company reiterates its long-term annual financial targets as follows:

• Percentage unit growth in the low double digits, with the potential for more than 2,200 restaurants in the United States
• Same-restaurantsales growth of ~3.5%
• Restaurant sales growth in the mid-teens
• Adjusted EBITDA percentage growth in the mid-teens

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• We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.

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