First Watch Stock Slips as Executives Warn of Egg Costs Hurting Margins | Global News Avenue

Shares of First Watch Restaurant Group (FWRG) fell on Tuesday as breakfast chains expect high prices for eggs and other items, which could put pressure on their profit margins this year.

“Although we shrink for eggs every year, which ensures our supply and protects us from the worst price flu, the ongoing effects of avian flu must allow our egg suppliers to supplement purchases that are priced at spot markets,” First Observe CFO Mel Hope said in Tuesday’s revenue and provided transcription through Alphassense.

Commodity inflation could continue until this year, CFO says

Hope said high prices for avocado, bacon and coffee beans said the company expects “high unit numbers” to inflation in commodity will be a factor for most of the year. CEO Chris Tomasso said the company knew “consumers are under a lot of pressure everywhere these days.”

First, watches are ready to absorb higher costs without having to add egg surcharges, executives say Some breakfast competitorsas they think this can help them gain market share as they did during the period Previous egg price spikes Caused by bird flu.

Tuesday’s first watch report Earnings per share (EPS) The revenue of $263.3 million was $0.01, and each revenue roughly matched the estimates of analysts from the visible Alpha compilation. Salesmen fell by 0.3% year-on-year during the same period, and an estimated decline of 0.48%. The chain said it expects the same growth in low single digital sales in fiscal 2025, which is in line with the consensus of 2.2%.

The first stock fell about 4% Tuesday afternoon. They have lost nearly 30% of their value in the past 12 months.