Company: FWRG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001789940-25-000072
Chunk: 74

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 74
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 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.

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

(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.

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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 ENDEDTWENTY-SIX WEEKS ENDED(in thousands)JUNE 29, 2025JUNE 30, 2024JUNE 29, 2025JUNE 30, 2024Income from operations$7,313 $16,447 $8,426 $28,733 Less: Franchise revenues(2,904)(3,104)(5,553)(6,245)Add:General and administrative expenses33,185 27,189 63,404 54,847 Depreciation and amortization18,136 14,536 34,693 26,807 Transaction expenses, net (1)919 725 1,792 1,394 Impairments and loss on disposal of assets (2)127 153 136 272 Restaurant level operating profit$56,776 $55,946 $102,898 $105,808 Restaurant sales$304,983 $255,457 $584,574 $494,765 Income from operations margin2.4 %6.4 %1.4 %5.8 %Restaurant level operating profit margin18.6 %21.9 %17.6 %21.4 %Additional informationDeferred rent expense (3)$244 $357 $379 $650 _____________________________

(1)  Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs and, in 2024,