Company: FWRG
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001789940-25-000041
Chunk: 34

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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2024”), reflected the continued momentum of our operating performance and include the following:

•Opened 13 system-wide restaurants in 10 states, resulting in a total of 584 system-wide restaurants (498 company-owned and 86 franchise-owned) across 30 states

•Total revenues increased 16.4% to $282.2 million in the first quarter of 2025 from $242.4 million in the first quarter of 2024

•System-wide sales increased 11.5% to $323.0 million in the first quarter of 2025 from $289.6 million in the first quarter of 2024

•Same-restaurant sales growth of  0.7%

•Same-restaurant traffic growth of negative 0.7%

•Income from operations margin decreased to 0.4% during the first quarter of 2025 from 5.1% in the first quarter of 2024

•Restaurant level operating profit margin* decreased to 16.5% in the first quarter of 2025 from 20.8% in the first quarter of 2024

•Net loss of $(0.8) million, or $(0.01) per diluted share, in the first quarter of 2025 from net income of $7.2 million, or $0.12 per diluted share in the first quarter of 2024

•Adjusted EBITDA* decreased to $22.8 million in the first quarter of 2025 from $28.6 million in the first quarter of 2024

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* See Non-GAAP Financial Measures Reconciliations section below.

18

Business Trends

In the first quarter, we experienced same-restaurant traffic growth of negative 0.7%. Though remaining somewhat challenged in the near-term due to the dynamic macroenvironment, we expect traffic to improve in the second half of the year when we anticipate benefiting from the results of increased focused marketing initiatives. Commodity inflation was 7.7% in the first quarter of 2025, largely driven by four of our top five commodities: eggs, coffee, bacon and avocados. We expect commodity inflation to remain in the high single-digit percentage range for the balance of the year based on current market conditions. We estimate that the tariffs enacted in April 2025 will increase our food and beverage costs as a percentage of restaurant sales by approximately 0.1% and supplies costs as a percentage of restaurant sales by approximately 0.2% for