Company: FWRG
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001789940-25-000010
Chunk: 86

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 86
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 Performance Indicators” for additional information.

** See Non-GAAP Financial Measure Reconciliations section below.

Business Trends  

During 2024, many restaurant industry sectors experienced downward sales pressure and traffic and “breakfast” was the most impacted daypart. The Company’s same-restaurant sales growth in 2024 was negative 0.5%, and partially offset by a 3.6% increase in carried price.

Commodity inflation was 3.2% in 2024. We expect a high-single digit percentage increase in our 2025 commodity prices as compared to the prior year.

Restaurant level labor inflation of 4.4% was offset by improvements in labor efficiencies. At year end, we were staffed with over 120 managers to lead and operate our future new company-owned restaurants. We expect 2% to 4% labor inflation in 2025.

Continuing the Company’s expansion, Management intends to open 59 to 64 net new system-wide restaurants in 2025. In addition, Management has entered into two agreements to acquire 19 restaurants from franchisees.  

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Development Highlights

During 2024, the Company had a total of 50 new system-wide restaurants in 19 states. One company-owned and one franchise-owned restaurant closed in 2024. We also acquired 22 operating restaurants from our franchisees in the execution of our growth strategy. See Note 3, Business Acquisitions, in the accompanying notes to the consolidated financial statements for additional information. At December 29, 2024, the Company had a total of 572 system-wide restaurants. 

FISCAL YEAR 2024 Company-ownedFranchise-ownedTotalBeginning of period42599524New restaurants43750Acquisitions of franchise-owned restaurants22 (22)— Closures(1)(1)(2)End of period48983572

We expect to open between 55 to 58 company-owned restaurants and 7 to 9 franchise-owned restaurants during 2025. We also plan to close 3 company-owned restaurants, resulting in a total of 59 to 64, net new system-wide restaurants in 2025. 

Selected Operating DataFISCAL YEAR202420232022Number of weeks in fiscal year525352 System-wide restaurants572524474 Company-owned489425366 Franchise-owned8399108 System-wide sales (in thousands)1,184,4691,103,089914,816 Same-restaurant sales growth (1)(0.