Company: FWRG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001789940-25-000072
Chunk: 33

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 #1 Most Loved Workplace. 

The Company operates and franchises restaurants in 31 states under the “First Watch” trade name and as of June 29, 2025, the Company had 531 company-owned restaurants and 69 franchise-owned restaurants.

Recent Developments

Financial highlights for the thirteen weeks ended June 29, 2025 (“second quarter of 2025”) as compared, unless otherwise indicated below, to the thirteen weeks ended June 30, 2024 (“second quarter of 2024”), reflected the continued momentum of our operating performance and include the following:

•Opened 17 system-wide restaurants in 8 states, with 1 planned closure, resulting in a total of 600 system-wide restaurants (531 company-owned and 69 franchise-owned) across 31 states

•Total revenues increased 19.1% to $307.9 million in the second quarter of 2025 from $258.6 million in the second quarter of 2024

•System-wide sales increased 15.8% to $346.2 million in the second quarter of 2025 from $299.0 million in the second quarter of 2024

•Same-restaurant sales growth of 3.5%

•Same-restaurant traffic growth of 2.0%

•Income from operations margin decreased to 2.4% during the second quarter of 2025 from 6.4% in the second quarter of 2024

•Restaurant level operating profit margin* decreased to 18.6% in the second quarter of 2025 from 21.9% in the second quarter of 2024

•Net income decreased to $2.1 million, or $0.03 per diluted share, in the second quarter of 2025 from net income of $8.9 million, or $0.14 per diluted share, in the second quarter of 2024

•Adjusted EBITDA* decreased to $30.4 million in the second quarter of 2025 from $35.3 million in the second quarter of 2024

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* See Non-GAAP Financial Measures Reconciliations section below.

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Business Trends

In the second quarter, the Company’s same-restaurant traffic grew 2.0%, our first quarter of positive traffic growth since the first quarter ended March 26, 2023. We expect positive traffic trends to continue through the second half of the year.

Commodity inflation was 8.1% in the second