Company: FWRG
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001789940-25-000010
Chunk: 97

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 97
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 Income (Loss).

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

(8) Represents insurance recoveries, net of costs incurred, in connection with hurricane damage, which were recorded in Other income, net on the Consolidated Statements of Operations and Comprehensive Income (Loss). 

(9) 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).

49

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:

FISCAL YEAR(in thousands)202420232022Income from operations$38,907 $41,267 $16,913 Less: Franchise revenues(11,555)(14,459)(10,981)Add:General and administrative expenses113,270 103,121 84,959 Depreciation and amortization57,715 41,223 34,230 Transaction expenses (income), net (1)2,587 3,147 2,513 Impairments and loss on disposal of assets (2)525 1,359 920 Costs in connection with natural disasters (3)312 — 382 Restaurant level operating profit$201,761 $175,658 $128,936 Restaurant sales$1,004,355 $877,092 $719,181 Income from operations margin3.9 %4.7 %2.4 %Restaurant level operating profit margin20.1 %20.0 %17.9 %Additional informationDeferred rent expense (income) (4)$1,119 $1,891 $2,219 _____________________________

(1) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs, costs related to restaurant closures, gains or losses associated with lease or contract terminations and revaluations of contingent consideration liability.

(2) Represents impairment charges and costs related to the disposal of assets due to retirements, replacements, restaurant closures and natural disasters.

(3) Represents costs incurred in connection with hurricane damage. The costs include inventory spoilage and labor costs, which were recorded in Food and beverage costs and Labor and other related expenses,