Company: FWRG
Filing Date: 2025-04-08
Form Type: ARS
Source: 0001789940-25-000033
Chunk: 109

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-04-08
Form: ARS
Chunk 109
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,492 12,329 9,627 Gift card redemptions (10,230) (11,198) (8,225) Gift card breakage (1,266) (1,081) (915) Gift card liabilities assumed through acquisitions 165 277 — Balance, end of period $ 5,385 $ 5,224 $ 4,897 Gift cards are combined in one pool and are not separately identifiable. As such, the revenue recognized consists of gift cards that were part of the deferred revenue balance at the beginning of the period as well as gift cards that were issued during the period. FIRST WATCH RESTAURANT GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 71

Changes in deferred franchise fee contract liabilities were as follows: FISCAL YEAR (in thousands) 2024 2023 2022 Deferred franchise fee revenue: Balance, beginning of period $ 2,061 $ 2,768 $ 2,536 Cash received 559 288 530 Franchise revenues recognized (278) (388) (298) Business combinations - franchise revenues recognized (413) (607) — Balance, end of period $ 1,929 $ 2,061 $ 2,768 Revenues recognized disaggregated by type were as follows: FISCAL YEAR (in thousands) 2024 2023 2022 Restaurant sales: In-restaurant dining sales $ 829,048 $ 716,960 $ 571,048 Third-party delivery sales 97,444 91,433 82,049 Take-out sales 77,863 68,699 66,084 Total restaurant sales $ 1,004,355 $ 877,092 $ 719,181 Franchise revenues: Royalty and system fund contributions $ 10,864 $ 13,464 $ 10,683 Initial fees 278 388 298 Business combinations - revenues recognized 413 607 — Total franchise revenues $ 11,555 $ 14,459 $ 10,981 Total revenues $ 1,015,910 $ 891,551 $ 730,162 Deferred revenues as of December 29, 2024 are expected to be recognized as follows: FISCAL YEAR (in thousands) 2025 $ 5,623 2026 $ 287 2027 $ 258 2028 $ 236 2029 $ 199 Thereafter $ 711 5. Accounts Receivable