Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 59

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 59
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 growth is driven by our menu price increases and changes to our menu mix.

THIRTEEN WEEKS ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeRestaurant sales:In-restaurant dining sales$226,727 $195,199 16.2 %Third-party delivery sales32,005 25,935 23.4 %Take-out sales20,859 18,174 14.8 %Total Restaurant sales$279,591 $239,308 16.8 %

The increase in total restaurant sales as compared to the same period in the prior year was due principally to restaurant sales of (i) $25.6 million for the thirteen weeks ended March 30, 2025 from 46 NROs opened between March 31, 2024 and March 30, 2025, (ii) $10.5 million from 21 restaurants acquired from franchisees between March 31, 2024 and March 30, 2025, (iii) menu price increases, partially offset by a decrease in same-restaurant traffic and increased promotional usage.

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 ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeFranchise revenues:Royalty and system fund contributions$2,587 $3,009 (14.0)%Initial fees62 102 (39.2)%Business acquisitions - franchise revenues recognized— $30 (100.0)%Total Franchise revenues$2,649 $3,141 (15.7)%

The decrease in franchise revenues during the thirteen weeks ended March 30, 2025 as compared to the same period in the prior year was primarily driven by the Company’s acquisitions of 21 franchise-owned restaurants, partially offset by franchise revenues from the 8 franchise-owned NROs between March 31, 2024 and March 30, 2025.

Food and Beverage Costs

The components of food and beverage costs at company-owned restaurants are variable by nature, change with sales volume, are impacted by product mix and are subject