Company: FWRG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001789940-25-000072
Chunk: 49

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 level operating profit margin partially offset by leveraging of general and administrative expenses.

Adjusted EBITDA decreased during the thirteen and twenty-six weeks ended June 29, 2025 as compared to the same periods in the prior year primarily due to (i) the decrease in restaurant level operating profit and (ii) the increase in general and administrative expenses.

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Non-GAAP Financial Measures Reconciliations

Adjusted EBITDA and Adjusted EBITDA margin - The following table reconciles Net income and Net income margin, the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted EBITDA margin, for the periods indicated:

THIRTEEN WEEKS ENDEDTWENTY-SIX WEEKS ENDED(in thousands)JUNE 29, 2025JUNE 30, 2024JUNE 29, 2025JUNE 30, 2024Net income $2,106 $8,900 $1,277 $16,114 Depreciation and amortization18,136 14,536 34,693 26,807 Interest expense4,003 3,381 7,337 5,980 Income tax expense1,470 4,879 762 7,678 EBITDA25,715 31,696 44,069 56,579 Strategic costs (1)799 161 2,033 396 Loss on extinguishment and modification of debt— — — 428 Stock-based compensation (2)2,790 2,452 5,049 4,318 Delaware Voluntary Disclosure Agreement Program (3)29 67 53 75 Transaction expenses, net (4)919 725 1,792 1,394 Impairments and loss on disposal of assets (5)127 153 136 272 Recruiting and relocation costs (6)— 71 — 275 Severance costs (7)— — — 178 Adjusted EBITDA$30,379 $35,325 $53,132 $63,915 Total revenues$307,887 $258,561 $590,127 $501,010 Net income margin0.7 %3.4 %0.2 %3.2 %Adjusted EBITDA margin9.9 %13.7 %9.0 %