Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 49

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 49
---
Cash provided by operating activities$20,138 $24,982 Cash used in investing activities(36,605)(32,002)Cash provided by financing activities1,762 562 Net decrease in cash and cash equivalents and restricted cash$(14,705)$(6,458)

Cash provided by operations is our typical source of liquidity used (i) to fund capital expenditures for new restaurants, (ii) to maintain and remodel existing restaurants and (iii) for debt service. Cash provided by operations decreased during the thirteen week period ended March 30, 2025 as compared to the thirteen week period ended March 31, 2024 primarily due to the decrease in income from operations.

Cash used in investing activities increased during the thirteen weeks ended March 30, 2025 from the thirteen weeks ended March 31, 2024 due principally to increases in the number of new restaurants and capital projects into which the Company is investing, offset in part by $3.4 million paid in the prior year to acquire a franchise location.

Cash provided by financing activities includes (i) borrowing the Company’s Credit Facility to fund capital projects and related debt issuance costs, net of debt repayments and (ii) proceeds from stock option exercises.

Critical Accounting Estimates

Our discussion and analysis of our financial condition and results of operations is based upon the accompanying unaudited interim consolidated financial statements and notes thereto, which have been prepared in accordance with GAAP. The preparation of these unaudited interim consolidated financial statements and related notes requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, terms of existing contracts, our evaluation of trends in the industry and information available from other outside sources, as appropriate. We evaluate our estimates and judgments on an on-going basis. Our actual results may differ from these estimates. Judgments and uncertainties affecting the application of those policies may result in materially different amounts being reported under different conditions or using different assumptions. There have been no significant changes to our critical accounting policies as disclosed in “Critical Accounting Estimates” in the 2024 Form 10-K.

Recently Issued Accounting Pronouncements

For a discussion of recently issued accounting pronouncements, see Note 2, Summary of Significant Accounting Policies, in the accompanying notes to the unaud