Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 67

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 67
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 used by Management in our financial and operational decision making. Our non-GAAP measures may not be comparable to similarly titled measures used by other companies and have important limitations as analytical tools. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP as they may not provide a complete understanding of our performance. These non-GAAP measures should be reviewed in conjunction with our consolidated financial statements prepared in accordance with GAAP. We use Adjusted EBITDA and Adjusted EBITDA margin (i as factors in evaluating management’s performance when determining incentive compensation, (ii to evaluate our operating results and the effectiveness of our business strategies and (iii internally as benchmarks to compare our performance to that of our competitors. We use Restaurant level operating profit and Restaurant level operating profit margin (i to evaluate the performance and profitability of operating restaurants, individually, and in the aggregate, (ii to compare the performance of our restaurants and markets and (iii to make decisions regarding future spending and other operational decisions. Adjusted EBITDA: represents Net income before depreciation and amortization, interest expense, income taxes, and items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of Net income, the most directly comparable measure in accordance with GAAP, to Adjusted EBITDA, included in the section Non-GAAP Financial Measure Reconciliations below. 41

• Total revenues increased 13.9% to $1.0 billion from $891.6 million in 2023 • System-wide sales increased to $1.2 billion from $1.1 billion in 2023 • Same-restaurant sales growth of negative 0.5%* • Same-restaurant traffic growth of negative 4.0%* • Income from operations decreased to $38.9 million from $41.3 million in 2023 • Income from operations margin decreased to 3.9% from 4.7% in 2023 • Restaurant level operating profit** increased to $201.8 million from $175.7 million in 2023 • Restaurant level operating profit margin** increased to 20.1% from 20.0% in 2023 • Net income decreased to $18.9 million from $25.4 million in 2023 • Adjusted EBITDA** increased to $113.8 million from $99.5 million in 2023 • Opened 50 system-wide restaurants (43 company-owned and 7