Company: FWRG
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001789940-25-000086
Chunk: 49

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 on July 4, 2025, including provisions related to research and development. The impact on our consolidated financial statements was immaterial. 

Net Income

THIRTEEN WEEKS ENDEDTHIRTY-NINE WEEKS ENDED(in thousands)SEPTEMBER 28, 2025SEPTEMBER 29, 2024ChangeSEPTEMBER 28, 2025SEPTEMBER 29, 2024ChangeNet income $2,991 $2,112 41.6 %$4,268 $18,226 (76.6)%As a percentage of total revenues0.9 %0.8 %0.1 %0.5 %2.4 %(1.9)%

Net income and net income margin during the thirteen weeks ended September 28, 2025 increased as compared to the same period in the prior year primarily due to the increase in income from operations, partially offset by (i) the increase in interest expense and (ii) the increase in income tax expense.

Net income and net income margin during the thirty-nine weeks ended September 28, 2025 decreased as compared to the same period in the prior year primarily due to the (i) decrease in income from operations as expenses increased at a higher rate than revenue and (ii) increase in interest expense associated with increased borrowings to fund acquisitions, offset partially by the impact of income taxes.

Restaurant Level Operating Profit and Restaurant Level Operating Profit Margin

THIRTEEN WEEKS ENDEDTHIRTY-NINE WEEKS ENDED(in thousands)SEPTEMBER 28, 2025SEPTEMBER 29, 2024ChangeSEPTEMBER 28, 2025SEPTEMBER 29, 2024ChangeRestaurant level operating profit$61,675 $46,991 31.2 %$164,573 $152,799 7.7 %Restaurant level operating profit margin19.7 %18.9 %0.8 %18.3 %20.5 %(2.2)%

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Restaurant level operating profit margin during the thirteen weeks ended September 28, 2025 increased as compared to the same period in the prior year primarily due to (i) favorable labor and other related expenses as a percent of sales, (ii) favorable food and beverage costs as a percent of sales and (iii) favorable occupancy expenses as a percent of sales. This was partially offset