Company: FWRG
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001789940-25-000086
Chunk: 41

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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28, 2025SEPTEMBER 29, 2024ChangeRestaurant sales:In-restaurant dining sales$254,155 $207,047 22.8 %$728,282 $613,422 18.7 %Third-party delivery sales37,163 22,372 66.1 %103,633 72,682 42.6 %Take-out sales22,318 19,546 14.2 %66,295 57,626 15.0 %Total restaurant sales$313,636 $248,965 26.0 %$898,210 $743,730 20.8 %

The increase in total restaurant sales as compared to the same periods in the prior year was due principally to (i) the increase in number of restaurants due to NROs, (ii) restaurants acquired from franchisees, (iii) menu price increases and (iv) an increase in same-restaurant traffic, partially offset by increased promotional usage.

23

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.

THIRTEEN WEEKS ENDEDTHIRTY-NINE WEEKS ENDED(in thousands)SEPTEMBER 28, 2025SEPTEMBER 29, 2024ChangeSEPTEMBER 28, 2025SEPTEMBER 29, 2024ChangeFranchise revenues:Royalty and system fund contributions$2,333 $2,587 (9.8)%$7,371 $8,257 (10.7)%Initial fees53 57 (7.0)%170 219 (22.4)%Business acquisitions - franchise revenues recognized$— $— — %$398 $413 (3.6)%Total Franchise revenues$2,386 $2,644 (9.8)%$7,939 $8,889 (10.7)%

The decrease in franchise revenues during the thirteen and thirty-nine weeks ended September 28, 2025 as compared to the same periods in the prior year was primarily driven by the Company’s acquisitions of franchise-owned restaurants, partially offset by franchise revenues from the franchise