Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 46

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 margin8.1 %11.8 %(3.7)%

Adjusted EBITDA decreased during the thirteen weeks ended March 30, 2025 as compared to the same period in the prior year primarily due to (i) the decrease in restaurant level operating profit and (ii) the increase in general and administrative expenses including increased marketing spend.

Adjusted EBITDA margin decreased during the thirteen weeks ended March 30, 2025 compared to the same period in the prior year primarily due to a decrease in restaurant level operating profit margin partially offset by leveraging of 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 (loss) and Net income (loss) margin, the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted EBITDA margin for the periods indicated:

.THIRTEEN WEEKS ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024Net (loss) income $(829)$7,214 Depreciation and amortization16,557 12,271 Interest expense3,334 2,599 Income tax (benefit) expense(708)2,799 EBITDA18,354 24,883 Strategic costs (1)1,234 235 Loss on extinguishment and modification of debt— 428 Stock-based compensation (2)2,259 1,866 Delaware Voluntary Disclosure Agreement Program (3)24 8 Transaction expenses, net (4)873 669 Impairments and loss on disposal of assets (5)9 119 Recruiting and relocation costs (6)— 204 Severance costs (7)— 178 Adjusted EBITDA$22,753 $28,590 Total revenues$282,240 $242,449 Net (loss) income margin(0.3)%3.0 %Adjusted EBITDA margin8.1 %11.8 %Additional information Deferred rent expense (8)$185 $343 _____________________________

(1) Represents costs related to process improvements and strategic initiatives. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

(2) Represents non-cash, stock-based compensation expense which is recorded within General and administrative expenses on the Consolidated Statements of Operations and