Company: FWRG
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001789940-25-000010
Chunk: 89

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 89
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-restaurant dining sales$829,048 $716,960 $112,088 15.6 %Third-party delivery sales97,444 91,433 6,011 6.6 %Take-out sales77,863 68,699 9,164 13.3 %Total Restaurant sales$1,004,355 $877,092 $127,263 14.5 %

The increase in total restaurant sales was primarily due to (i) opening and acquiring restaurants in 2024, (ii) recognizing a full year of sales for restaurants opened and acquired in 2023 and (iii) menu price increases. The increase was partially offset by (i) 2024 negative same-restaurant sales growth of 0.5% and (ii) the 53rd week of sales in 2023. 

43

Franchise Revenues

Franchise revenues are comprised of sales-based royalty fees, system fund contributions and the amortization of upfront initial franchise fees, which are recognized as revenue on a straight-line basis over the term of the franchise agreement. Franchise revenues in any period are directly influenced by the number of open franchise-owned restaurants.

FISCAL YEAR(in thousands)20242023ChangeFranchise revenues:Royalty and system fund contributions$10,864 $13,464 $(2,600)(19.3)%Initial fees278 388 (110)(28.4)%Business combinations - revenues recognized413 607 (194)— %Total Franchise revenues$11,555 $14,459 $(2,904)(20.1)%

The decrease in franchise revenues during 2024 as compared to 2023 was primarily driven by (i) the Company’s acquisitions of franchise-owned restaurants and (ii) $0.6 million of deferred franchise revenues recognized in 2023 in connection with the acquisitions of restaurants from franchisees. The decrease was partially offset by (i) revenues from franchise-owned NROs and (ii) $0.4 million of deferred franchise revenues recognized in 2024 in connection with the acquisitions of restaurants from our franchisees.   

Food and Beverage Costs

The components of food and beverage costs at company-owned restaurants are variable by nature, change with sales volume, are impacted by product mix and are subject to increases or decreases in commodity costs.

FISCAL YEAR(in thousands)20242023ChangeFood and beverage costs$223,097 $197,374 $