Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 78

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 78
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 Restaurant level Operating Profit Margin FISCAL YEAR (in thousands) 2024 2023 Change Restaurant level operating profit $ 201,761 $ 175,658 $ 26,103 14.9 % Restaurant level operating profit margin 20.1 % 20.0 % 0.1% Restaurant level operating profit margin during 2024 increased as compared to 2023 primarily due to (i) favorable food and beverage costs as a percent of sales, (ii) favorable labor and other related expenses as a percent of sales and (iii) acquired restaurants. This was partially offset by the deleverage of occupancy expenses. Restaurant level operating profit during 2024 increased as compared to 2023 primarily due to (i) menu price increases and (ii) revenue from the increase in the number of restaurants. This was partially offset by the increase in (i) operating costs and expenses driven by our restaurant growth and (ii) deleverage of occupancy expenses. Adjusted EBITDA and Adjusted EBITDA Margin FISCAL YEAR (in thousands) 2024 2023 Change Adjusted EBITDA $ 113,836 $ 99,483 $ 14,353 14.4 % Adjusted EBITDA margin 11.2 % 11.2 % —% The increase in Adjusted EBITDA and consistent Adjusted EBITDA margin during 2024 as compared to 2023 was primarily due to the increase in (i) restaurant level operating profit and (ii) restaurant level operating profit margin. This was partially offset by the increase in general and administrative expenses, mainly due to the increase in compensation expense. Income Tax Expense Income tax expense primarily consists of various federal and state taxes. 49

. FISCAL YEAR (in thousands) 2024 2023 2022 Net income (loss) $ 18,925 $ 25,385 $ 6,907 Depreciation and amortization 57,715 41,223 34,230 Interest expense 12,640 8,063 5,232 Income taxes 9,101 10,690 5,684 EBITDA 98,381 85,361 52,053 Stock-based compensation (1) 8,525 7,604 10,374 Transaction expenses (income), net (2) 2,587 3,147 2,513 Strategic transition costs (3) 1,843 892 2,318