Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 45

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 credits, which are subject to a valuation allowance, relative to changes in pre-tax book income.   

The change in the effective income tax rates for the thirteen weeks ended March 30, 2025 as compared to the same period in the prior year was primarily due to the change in pre-tax book income relative to the FICA tax credit and valuation allowance. 

Net (Loss) Income

THIRTEEN WEEKS ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeNet (loss) income $(829)$7,214 (111.5)%As a percentage of total revenues(0.3)%3.0 %(3.3)%

Net (loss) income and net (loss) income margin during the thirteen weeks ended March 30, 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 ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeRestaurant level operating profit$46,122 $49,862 (7.5)%Restaurant level operating profit margin16.5 %20.8 %(4.3)%

Restaurant level operating profit margin during the thirteen weeks ended March 30, 2025 decreased as compared to the same period in the prior year primarily due to (i) inflation across commodities and supplies, (ii) increases in restaurant-level wages, and (iii) increases in occupancy and preopening rent expenses. This was partially offset by the leverage associated with menu price.

Restaurant level operating profit for the thirteen weeks ended March 30, 2025 decreased as compared to the same period in the prior year due to operating expense increases, including (i) labor costs, (ii) food and beverage expenses, (iii) other restaurant operating expenses, and (iv) occupancy and preopening rent, exceeding revenue increases.

Adjusted EBITDA and Adjusted EBITDA Margin

THIRTEEN WEEKS ENDED(in thousands)MARCH 30, 2025MARCH 31, 2024ChangeAdjusted EBITDA$22,753 $28,590 (20.4)%Adjusted EBITDA