Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 47

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 Comprehensive Income (Loss).

(3) Represents professional service costs incurred in connection with the Delaware Voluntary Disclosure Agreement Program related to unclaimed or abandoned property. These costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

(4) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs and, in 2024,  an offsetting gain on release of contingent consideration liability and expenses related to debt.

(5) Represents costs related to the disposal of assets due to retirements, replacements or certain restaurant closures. There were no impairments recognized during the periods presented.

(6) Represents costs incurred for hiring qualified individuals. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

(7) Severance costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

(8) Represents the non-cash portion of straight-line rent expense recorded within both Occupancy expenses and General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

27

Restaurant level operating profit and Restaurant level operating profit margin - The following table reconciles Income from operations and Income from operations margin, the most comparable GAAP measures to Restaurant level operating profit and Restaurant level operating profit margin for the periods indicated:

THIRTEEN WEEKS ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024Income from operations$1,113 $12,286 Less: Franchise revenues(2,649)(3,141)Add:General and administrative expenses30,219 27,658 Depreciation and amortization16,557 12,271 Transaction expenses, net (1)873 669 Impairments and loss on disposal of assets (2)9 119 Restaurant level operating profit$46,122 $49,862 Restaurant sales$279,591 $239,308 Income from operations margin0.4 %5.1 %Restaurant level operating profit margin16.5 %20.8 %Additional informationDeferred rent expense (3)$135 $293 _____________________________

(1)  Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs and, in 2024,  an offsetting gain on release of contingent consideration liability and expenses related to debt.

(2) Represents costs related to the disposal of assets due to