Company: FWRG
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001789940-25-000010
Chunk: 25

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 25
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Item 1A. Risk Factors

You should carefully consider the risks described below in addition to the other information set forth in this Annual Report on Form 10-K, including the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and our consolidated financial statements and related notes. If any of the risks and uncertainties described in the cautionary factors described below actually occur or continue to occur, our business, financial condition, results of operations, cash flow and the trading price of our common stock could be materially and adversely affected. The considerations and risks that follow are organized within relevant headings but may be relevant to other headings as well. Moreover, the risks below are not the only risks we face and additional risks not currently known to us or that we presently deem immaterial may emerge or become material at any time and may adversely impact our business, reputation, financial condition, results of operations, cash flow or the trading price of our common stock.  

Risk Factors Summary

Our business is subject to numerous risks and uncertainties, including those outside of our control, that could cause our actual results to be harmed. These risks include the following:

Risks Related to Our Business and Industry

•our vulnerability to changes in economic conditions and other factors, many of which are largely outside of our control

•our inability to open new restaurants in new and existing markets or to operate them as profitably as we have experienced in the past

•our inability to effectively manage our growth

•opening new restaurants may adversely impact sales at our and our franchisees’ existing restaurants

•the number of visitors to areas where our restaurants are located may decline

•lower than expected same-restaurant sales growth

•unsuccessful marketing programs or limited-time menu offerings

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•shortages or disruptions in the supply or delivery of frequently used food items or increases in the cost of our frequently used food items

•unsuccessful new restaurant openings

•our inability to compete successfully with other breakfast and lunch restaurants

•our vulnerability to food safety and food-borne illness concerns

•issues with our existing franchisees, including their financial performance, our lack of control over their operations and conflicting business interests

•our reliance on a small number of suppliers for a substantial amount of our food and coffee

•geographic concentration

•damage to our reputation and negative publicity, even if unwarranted

•our inability to effectively manage the accelerated impact of social media and artificial intelligence

Risks