-- Total revenues increased 20.3% to $1.2 billion, with System-wide sales up
16.1% to $1.4 billion
-- Income from operations margin of 2.3% and Restaurant level operating
profit margin of 18.5%
-- Net income of $19.4 million and Adjusted EBITDA of $120.9 million
-- 64 system-wide restaurants opened across 23 states
BRADENTON, Fla., Feb. 24, 2026 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) ("First Watch" or the "Company"), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended December 28, 2025 ("Q4 2025") and the 52-week fiscal year ended December 28, 2025 ("2025") compared to the thirteen weeks ended December 29, 2024 ("Q4 2024") and the 52-week fiscal year ended December 29, 2024 ("2024") and provided an outlook for the 52-week fiscal year ending December 27, 2026 ("2026").
"2025 was a year of significant progress on a number of fronts for First Watch. In addition to continuing our industry-leading new restaurant growth of nearly 11%, we increased total revenues by more than 20%, which included same-restaurant sales growth of 3.6% and positive same-restaurant traffic," said Chris Tomasso, CEO and President of First Watch. "As we look to 2026 and beyond, we are energized by the growth opportunities across all facets of our business, particularly the expansion of our evolving digital marketing platform."
Highlights for Q4 2025 compared to Q4 2024
-- Total revenues increased 20.2% to $316.4 million in Q4 2025 from $263.3
million in Q4 2024
-- System-wide sales increased 16.1% to $353.1 million in Q4 2025 from
$304.1 million in Q4 2024
-- Same-restaurant sales growth of 3.1%
-- Same-restaurant traffic growth of negative 1.9%
-- Income from operations increased to $9.0 million in Q4 2025 from $3.9
million in Q4 2024
-- Income from operations margin increased to 2.9% in Q4 2025 from 1.5% in
Q4 2024
-- Restaurant level operating profit* increased to $59.6 million in Q4 2025
from $49.0 million in Q4 2024
-- Restaurant level operating profit margin* increased to 19.0% in Q4 2025
from 18.8% in Q4 2024
-- Net income of $15.2 million in Q4 2025 compared to Net income of $0.7
million in Q4 2024
-- Adjusted EBITDA* increased to $33.7 million in Q4 2025 from $24.3 million
in Q4 2024
-- Opened 13 system-wide restaurants (12 company-owned and 1
franchise-owned) across 11 states
________________________
*See Non-GAAP Financial Measures Reconciliations section below.
Highlights for 2025 compared to 2024:
-- Total revenues increased 20.3% to $1.2 billion in 2025 from $1.0 billion
in 2024
-- System-wide sales increased to $1.4 billion in 2025 from $1.2 billion in
2024
-- Same-restaurant sales growth of 3.6%
-- Same-restaurant traffic growth of 0.5%
-- Income from operations decreased to $27.5 million in 2025 from $38.9
million in 2024
-- Income from operations margin decreased to 2.3% in 2025 from 3.9% in 2024
-- Restaurant level operating profit* increased to $224.1 million in 2025
from $201.8 million in 2024
-- Restaurant level operating profit margin* decreased to 18.5% in 2025 from
20.1% in 2024
-- Net income increased to $19.4 million in 2025 from $18.9 million in 2024
-- Adjusted EBITDA* increased to $120.9 million in 2025 from $113.8 million
in 2024
-- Opened 64 system-wide restaurants (55 company-owned and 9
franchise-owned) across 23 states resulting in a total of 633 system-wide
restaurants (560 company-owned and 73 franchise-owned) across 32 states
________________________
*See Non-GAAP Financial Measures Reconciliations section below.
Outlook Fiscal Year 2026
The Company provides the following outlook for the 52-week fiscal year ended December 27, 2026:
-- Same-restaurant sales growth to be between 1% to 3%
-- Total revenue growth of 12%-14%(1)
-- Adjusted EBITDA* in the range of $132 million to $140 million (1)
-- Total of 59 to 63 new system-wide restaurants, not including 3
company-owned restaurant closures (53 to 55 new company-owned restaurants
and 9 to 11 new franchise-owned restaurants)
-- Capital expenditures in the range of $150.0 million to $160.0 million
invested primarily in new restaurant projects and planned remodels
The Company reiterates its long-term annual financial targets as follows:
-- Percentage unit growth in the low double digits -- Same-restaurant sales growth of 3.5% -- Restaurant sales growth in the mid-teens -- Adjusted EBITDA percentage growth in the mid-teens
The Company continues to see a long-term opportunity for more than 2,200 restaurants across the United States.
______________________
(1) Includes net impact of approximately 1.0% in total revenue growth and approximately $2.0 million in Adjusted EBITDA associated with acquisitions completed in 2025.
*We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.
Conference Call and Webcast
Chris Tomasso, Chief Executive Officer and President, and Mel Hope, Chief Financial Officer, will host a conference call and webcast today to discuss these financial results for Q4 2025 at 8:00 AM ET.
Interested parties may listen to the conference call via any one of two options:
-- Dial 201-389-0914, which will be answered by an operator
-- Join the webcast at
https://investors.firstwatch.com/news-and-events/events
The webcast will be archived shortly after the call has concluded.
Definitions
The following definitions apply to these terms as used in this release:
System-wide restaurants: the total number of restaurants, including all company-owned and franchise-owned restaurants.
System-wide sales: consists of restaurant sales from our company-owned restaurants and franchise-owned restaurants. We do not recognize the restaurant sales from our franchise-owned restaurants as revenue.
Same-restaurant sales growth: the percentage change in year-over-year restaurant sales (excluding gift card breakage) for the comparable restaurant base, which we define as the number of company-owned First Watch branded restaurants open for 18 months or longer as of the beginning of the fiscal year ("Comparable Restaurant Base"). For the year ended 2025, this operating metric compares the 52-week periods ended December 28, 2025 and December 29, 2024 with the 52-week period ended December 31, 2023, versus the 53-week fiscal year ended December 31, 2023, in order to compare like-for-like periods. For the 52-weeks ended December 28, 2025 and December 29, 2024, there were 381 restaurants and 344 restaurants in our Comparable Restaurant Base. Measuring our same-restaurant sales growth allows Management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors to provide a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of store openings, closings and other transitional changes.
Same-restaurant traffic growth: the percentage change in traffic counts for the 52-week period ended December 28, 2025 and December 29, 2024 as compared to the 52-week period ended December 31, 2023 using the Comparable Restaurant Base, versus the 53-week fiscal year ended December 31, 2023 in order to compare like-for-like periods. Measuring our same-restaurant traffic growth allows Management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors because same-restaurant traffic provides an indicator as to the development of our brand and the effectiveness of our marketing strategy.
Adjusted EBITDA: a non-GAAP measure, is defined as net income before depreciation and amortization, interest expense, income taxes and items that the Company does not consider in the evaluation of its ongoing core operating performance.
Adjusted EBITDA margin: a non-GAAP measure, is defined as Adjusted EBITDA as a percentage of total revenues.
Restaurant level operating profit: a non-GAAP measure, is defined as restaurant sales, less restaurant operating expenses, which include food and beverage costs, labor and other related expenses, other restaurant operating expenses, pre-opening expenses and occupancy expenses. Restaurant level operating profit excludes corporate-level expenses and other items that we do not consider in the evaluation of the ongoing core operating performance.
Restaurant level operating profit margin: a non-GAAP measure, is defined as Restaurant level operating profit as a percentage of restaurant sales.
About First Watch
First Watch is the leading Daytime Dining concept serving made-to-order breakfast, brunch and lunch using the freshest ingredients available. Guided by its "Follow the Sun" culinary philosophy, First Watch's chef-driven menu rotates multiple times per year to feature the highest-quality flavors at their peak, offering elevated executions of classic favorites, fresh juices like the Kale Tonic, and fan favorites such as the Lemon Ricotta Pancakes, Quinoa Power Bowl and signature Million Dollar Bacon. For every kid's meal served, First Watch proudly donates a portion to organizations and causes making a positive impact to our communities - raising approximately $2.0 million to date. A recipient of many "Best Breakfast" and "Best Brunch" awards, First Watch was voted #1 Best Breakfast by Newsweek's Readers' Choice Awards 2025, and also named 2025 and 2024's #1 Most Loved Workplace in America by the Best Practice Institute - an accolade most recently featured in The Wall Street Journal - after appearing on the list in 2022 and 2023, as well. With a commitment to quality, hospitality and community, First Watch is redefining Daytime Dining across more than 630 First Watch restaurants in 32 states. For more information, visit www.firstwatch.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed herein, in our Annual Report on Form 10-K, including "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our other filings with the SEC, accessible on the SEC's website at www.sec.gov and the Investors Relations section of the Company's website at https://investors.firstwatch.com/financial-information/sec-filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: our vulnerability to changes in consumer preferences and economic conditions such as inflation and recession; our inability to successfully open new restaurants or establish new markets; our inability to effectively manage our growth; potential negative impacts on sales at our and our franchisees' restaurants as a result of our opening new restaurants in existing markets; a decline in visitors to any of the retail centers, lifestyle centers, or entertainment centers where our restaurants are located; lower than expected same-restaurant sales growth; unsuccessful marketing programs and limited time new offerings; changes in the cost of food; unprofitability or closure of new restaurants or lower than previously experienced performance in existing restaurants; our inability to compete effectively for customers; our vulnerability to food safety and food-borne illness concerns; unsuccessful financial performance of our franchisees, our limited control over our franchisees' operations, our inability to maintain good relationships with our franchisees and conflicts of interest with our franchisees; the geographic concentration of our system-wide restaurant base in the southeast portion of the United States; damage to our reputation and negative publicity; our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media and artificial intelligence; our limited number of suppliers and distributors for several of our frequently used ingredients and shortages or disruptions in the supply or delivery of such ingredients; information technology system failures or breaches of our network security; our failure to comply with federal and state laws and regulations relating to privacy, data protection, advertising and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection, advertising and consumer protection; our potential liability with our gift cards under the property laws of some states; our failure to enforce and maintain our trademarks and protect our other intellectual property; litigation with respect to intellectual property assets; our dependence on our executive officers and certain other key employees; our inability to identify, hire, train and retain qualified individuals for our workforce; our failure to obtain or to properly verify the employment eligibility of our employees; our failure to maintain our corporate culture as we grow; unionization activities among our employees; employment and labor law proceedings; labor shortages or increased labor costs or health care costs; risks associated with leasing property subject to long-term and non-cancelable leases; risks related to our sale of alcoholic beverages; costly and complex compliance with federal, state and local laws, including trade and tax policies; changes in accounting principles applicable to us; our vulnerability to natural disasters, unusual weather conditions, pandemic outbreaks, political events, war and terrorism; our inability to secure additional capital to support business growth; our level of indebtedness; failure to comply with covenants under our credit facility; and uncertainty regarding the Russia and Ukraine war, war and unrest in the Middle East and the related impact on macroeconomic conditions, including inflation, as a result of such conflicts or other related events. For additional discussion of factors that could impact our operational and financial results, please refer to our filings with the SEC, accessible on the SEC's website at www.sec.gov and the Investors Relations section of the Company's website at https://investors.firstwatch.com/financial-information/sec-filings. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements.
Investor Relations Contact
Steven L. Marotta
941-500-1918
investors@firstwatch.com
Media Relations Contact
Jenni Glester
407-864-5823
jglester@firstwatch.com
Non-GAAP Financial Measures (Unaudited)
To supplement the consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we use the following non-GAAP measures, which present operating results on an adjusted basis: (i) Adjusted EBITDA, (ii) Adjusted EBITDA margin, (iii) Restaurant level operating profit and (iv) Restaurant level operating profit margin. Our presentation of these non-GAAP financial measures includes isolating the effects of some items that are either nonrecurring in nature or have no meaningful correlation to our ongoing core operating performance. These supplemental measures of performance are not required by or presented in accordance with GAAP. Management believes these non-GAAP measures provide investors with additional visibility into our operations, facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance, help to identify operational trends and allow for greater transparency with respect to key metrics used by Management in our financial and operational decision making. Our non-GAAP measures may not be comparable to similarly titled measures used by other companies and have important limitations as analytical tools. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP as they may not provide a complete understanding of our performance. These non-GAAP financial measures should be reviewed in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
Management uses Adjusted EBITDA and Adjusted EBITDA margin (i) as factors in evaluating management's performance when determining incentive compensation, (ii) to evaluate the Company's operating results and the effectiveness of our business strategies, (iii) internally as benchmarks to compare the Company's performance to that of its competitors and (iv) to provide investors with additional transparency of the Company's operations. The use of Adjusted EBITDA and Adjusted EBITDA margin as performance measures permit a comparative assessment of the Company's operating performance relative to the Company's performance based on the Company's GAAP results, while isolating the effects of some items that are either nonrecurring in nature or vary from period to period without any correlation to the Company's ongoing core operating performance.
The following tables reconcile Net income and Net income margin, the most directly comparable GAAP measures, to Adjusted EBITDA and Adjusted EBITDA margin for the periods indicated:
FOURTH QUARTER
(in thousands) 2025 2024 2023
------- ------- -------
Net income $ 15,164 $ 699 $ 2,648
Depreciation and
amortization 20,656 15,755 12,231
Interest expense 4,795 3,219 2,271
Income taxes (10,744) 39 2,857
------- ------- -------
EBITDA 29,871 19,712 20,007
Stock-based
compensation, net
of amounts
capitalized(1) 2,834 2,131 2,218
Transaction
expenses, net(2) 313 818 604
Strategic transition
costs(3) 531 889 211
Impairments and loss
on disposal of
assets(4) 137 139 741
Delaware Voluntary
Disclosure
Agreement
Program(5) 1 25 794
Recruiting and
relocation
costs(6) -- 254 50
Insurance proceeds
in connection with
natural disasters,
net((8) () -- 329 --
------- ------- -------
Adjusted EBITDA $ 33,687 $ 24,297 $ 24,625
======= ======= =======
Total revenues $316,352 $263,291 $244,633
Net income margin 4.8% 0.3% 1.1%
Adjusted EBITDA
margin 10.6% 9.2% 10.1%
Additional information
Deferred rent
(income)
expense((9) () $ (28) $ 242 $ 515
FISCAL YEAR
(in thousands) 2025 2024 2023
--------- --------- -------
Net income $ 19,432 $ 18,925 $ 25,385
Depreciation and
amortization 75,011 57,715 41,223
Interest expense 16,699 12,640 8,063
Income taxes (7,299) 9,101 10,690
--------- --------- -------
EBITDA 103,843 98,381 85,361
Stock-based
compensation,
net of amounts
capitalized(1) 10,760 8,525 7,604
Transaction
expenses,
net(2) 2,533 2,587 3,147
Strategic
transition
costs(3) 3,279 1,843 892
Impairments and
loss on
disposal of
assets(4) 448 525 1,359
Delaware
Voluntary
Disclosure
Agreement
Program(5) 55 126 1,250
Recruiting and
relocation
costs(6) -- 888 465
Severance
costs(7) -- 204 26
Insurance
proceeds in
connection with
natural
disasters,
net(8) -- 329 (621)
Loss on
extinguishment
of debt -- 428 --
--------- --------- -------
Adjusted EBITDA $ 120,918 $ 113,836 $ 99,483
========= ========= =======
Total revenues $1,222,501 $1,015,910 $891,551
Net income
margin 1.6% 1.9% 2.8%
Adjusted EBITDA
margin 9.9% 11.2% 11.2%
Additional information
Deferred rent
expense(9) $ 309 $ 1,318 $ 2,090
___________________________
(1) Represents non-cash, stock-based compensation expense, net of amounts capitalized, which is recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(2) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs, costs related to restaurant closures, expenses related to debt, and revaluations of contingent consideration liability.
(3) Represents costs related to process improvements and strategic initiatives. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(4) Represents impairment charges and costs related to the disposal of assets due to retirements, replacements, restaurant closures and natural disasters.
(5) Represents estimated professional service costs incurred in connection with the Delaware Voluntary Disclosure Agreement Program related to unclaimed or abandoned property. These costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(6) Represents costs incurred for hiring qualified individuals. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(7) Severance costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(8) Represents insurance recoveries, net of costs incurred, in connection with hurricane damage, which were recorded in Other income, net on the Consolidated Statements of Operations and Comprehensive Income.
(9) Represents the non-cash portion of straight-line rent expense recorded within both Occupancy expenses and General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
Restaurant level operating profit and Restaurant level operating profit margin
Restaurant level operating profit and Restaurant level operating profit margin are not indicative of our overall results, and because they exclude corporate-level expenses, do not accrue directly to the benefit of our stockholders. We will continue to incur such expenses in the future. Restaurant level operating profit and Restaurant level operating profit margin are important measures we use to evaluate the performance and profitability of each operating restaurant, individually and in the aggregate and to make decisions regarding future spending and other operational decisions. We believe that Restaurant level operating profit and Restaurant level operating profit margin provide useful information about our operating results, identify operational trends and allow for transparency with respect to key metrics used by us in our financial and operational decision-making.
The following tables reconcile Income from operations and Income from operations margin, the most directly comparable GAAP financial measures, to Restaurant level operating profit and Restaurant level operating profit margin for the periods indicated:
FOURTH QUARTER
(in thousands) 2025 2024 2023
------- ------- -------
Income from operations $ 9,035 $ 3,861 $ 6,855
Less: Franchise
revenues (2,389) (2,666) (3,591)
Add:
General and
administrative
expenses 31,800 30,743 29,953
Depreciation and
amortization 20,656 15,755 12,231
Transaction
expenses, net(1) 313 818 604
Impairments and loss
on disposal of
assets(2) 137 139 741
Costs in connection
with natural
disasters(3) -- 312 --
------- ------- -------
Restaurant level operating
profit $ 59,552 $ 48,962 $ 46,793
Restaurant sales $313,963 $260,625 $241,042
Income from
operations margin 2.9% 1.5% 2.8%
Restaurant level
operating profit
margin 19.0% 18.8% 19.4%
Additional information
Deferred rent
(income)
expense(4) $ (44) $ 192 $ 466
FISCAL YEAR
--------------------------------------------
(in thousands) 2025 2024 2023
--------- -------
Income from operations $ 27,511 $ 38,907 $ 41,267
Less: Franchise
revenues (10,328) (11,555) (14,459)
Add:
General and
administrative
expenses 128,950 113,270 103,121
Depreciation and
amortization 75,011 57,715 41,223
Transaction
expenses,
net(1) 2,533 2,587 3,147
Impairments and
loss on
disposal of
assets(2) 448 525 1,359
Costs in
connection with
natural
disasters(3) -- 312 --
--------- --------- -------
Restaurant level
operating profit $ 224,125 $ 201,761 $175,658
Restaurant sales $1,212,173 $1,004,355 $877,092
Income from
operations
margin 2.3% 3.9% 4.7%
Restaurant level
operating
profit margin 18.5% 20.1% 20.0%
Additional information
Deferred rent
expense(4) $ 167 $ 1,119 $ 1,891
____________________________
(1) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs, costs related to restaurant closures, expenses related to debt and revaluations of contingent consideration liability.
(2) Represents impairment charges and costs related to the disposal of assets due to retirements, replacements, restaurant closures and natural disasters.
(3) Represents costs incurred in connection with hurricane damage. The costs include inventory spoilage and labor costs, which were recorded in Food and beverage costs and Labor and other related expenses, respectively. on the Consolidated Statements of Operations and Comprehensive Income.
(4) Represents the non-cash portion of straight-line rent expense recorded within Occupancy expenses on the Consolidated Statements of Operations and Comprehensive Income.
FIRST WATCH RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(Unaudited)
Fourth Quarter
2025 2024 2023
---------- ---------- ----------
Revenues:
Restaurant sales $ 313,963 $ 260,625 $ 241,042
Franchise revenues 2,389 2,666 3,591
---------- ---------- ----------
Total revenues 316,352 263,291 244,633
---------- ---------- ----------
Operating costs and
expenses:
Restaurant operating
expenses (exclusive
of depreciation and
amortization shown
below):
Food and
beverage
costs 71,743 59,245 54,346
Labor and
other related
expenses 105,093 87,706 81,698
Other
restaurant
operating
expenses 47,683 38,736 36,905
Occupancy
expenses 26,939 21,961 18,450
Pre-opening
expenses 2,953 4,327 2,850
General and
administrative
expenses 31,800 30,743 29,953
Depreciation and
amortization 20,656 15,755 12,231
Impairments and loss
on disposal of
assets 137 139 741
Transaction
expenses, net 313 818 604
---------- ---------- ----------
Total
operating
costs and
expenses 307,317 259,430 237,778
---------- ---------- ----------
Income from
operations 9,035 3,861 6,855
Interest expense (4,795) (3,219) (2,271)
Other income, net 180 96 921
---------- ---------- ----------
Income before
income taxes 4,420 738 5,505
Income tax benefit
(expense) 10,744 (39) (2,857)
---------- ---------- ----------
Net income $ 15,164 $ 699 $ 2,648
========== ========== ==========
Net income $ 15,164 $ 699 $ 2,648
Other comprehensive
income:
Unrealized
gain (loss)
on
derivatives 51 2,722 (1,986)
Income tax
related to
other
comprehensive
(loss)
income (14) (679) 494
---------- ---------- ----------
Other comprehensive
income (loss) 37 2,043 (1,492)
---------- ---------- ----------
Comprehensive income $ 15,201 $ 2,742 $ 1,156
========== ========== ==========
Net income per
common share -
basic $ 0.25 $ 0.01 $ 0.04
Net income per
common share -
diluted $ 0.24 $ 0.01 $ 0.04
Weighted average
number of common
shares outstanding
- basic 61,054,021 60,636,071 59,827,847
Weighted average
number of common
shares outstanding
- diluted 62,877,592 62,335,821 61,688,871
FIRST WATCH RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
FISCAL YEAR
2025 2024 2023
---------- ---------- ----------
Revenues:
Restaurant sales $ 1,212,173 $ 1,004,355 $ 877,092
Franchise revenues 10,328 11,555 14,459
---------- ---------- ----------
Total revenues 1,222,501 1,015,910 891,551
---------- ---------- ----------
Operating costs and
expenses:
Restaurant operating
expenses (exclusive
of depreciation and
amortization shown
below):
Food and
beverage
costs 280,098 223,097 197,374
Labor and other
related
expenses 405,544 335,038 294,010
Other
restaurant
operating
expenses 188,685 151,968 134,477
Occupancy
expenses 100,788 82,694 68,400
Pre-opening
expenses 12,933 10,109 7,173
General and
administrative
expenses 128,950 113,270 103,121
Depreciation and
amortization 75,011 57,715 41,223
Impairments and loss
on disposal of
assets 448 525 1,359
Transaction expenses,
net 2,533 2,587 3,147
---------- ---------- ----------
Total operating
costs and
expenses 1,194,990 977,003 850,284
---------- ---------- ----------
Income from
operations 27,511 38,907 41,267
Interest expense (16,699) (12,640) (8,063)
Other income, net 1,321 1,759 2,871
---------- ---------- ----------
Income before
income taxes 12,133 28,026 36,075
Income tax benefit
(expense) 7,299 (9,101) (10,690)
---------- ---------- ----------
Net income $ 19,432 $ 18,925 $ 25,385
========== ========== ==========
Net income $ 19,432 $ 18,925 $ 25,385
Other comprehensive
(loss) income:
Unrealized
(loss) gain on
derivatives (869) 301 (889)
Income tax
related to
other
comprehensive
(loss) income 215 (75) 222
---------- ---------- ----------
Other comprehensive
(loss) income (654) 226 (667)
---------- ---------- ----------
Comprehensive income $ 18,778 $ 19,151 $ 24,718
========== ========== ==========
Net income per common
share - basic $ 0.32 $ 0.31 $ 0.43
Net income per common
share - diluted $ 0.31 $ 0.30 $ 0.41
Weighted average
number of common
shares outstanding -
basic 60,963,587 60,365,393 59,531,404
Weighted average
number of common
shares outstanding -
diluted 62,842,519 62,351,222 61,191,613
Same-Restaurant Sales Growth and Same-Restaurant Traffic Growth
THIRTEEN COMPARABLE WEEKS SAME-RESTAURANT SALES SAME-RESTAURANT RESTAURANT ENDED GROWTH TRAFFIC GROWTH BASE ----------- --------------------- --------------- ---------- December 28, 2025 3.1% * (1.9)% * 381 December 29, 2024 (0.3)% * (3.0)% * 344 December 31, 2023 5.0% ** (1.3)% ** 327
___________________
(*Comparison to the 13 weeks ended December 31, 2023, is provided for enhanced comparability.)
(**Thirteen weeks ended December 31, 2023.)
(END) Dow Jones Newswires
-- Total revenues increased 20.3% to $1.2 billion, with System-wide sales up
16.1% to $1.4 billion
-- Income from operations margin of 2.3% and Restaurant level operating
profit margin of 18.5%
-- Net income of $19.4 million and Adjusted EBITDA of $120.9 million
-- 64 system-wide restaurants opened across 23 states
BRADENTON, Fla., Feb. 24, 2026 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) ("First Watch" or the "Company"), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended December 28, 2025 ("Q4 2025") and the 52-week fiscal year ended December 28, 2025 ("2025") compared to the thirteen weeks ended December 29, 2024 ("Q4 2024") and the 52-week fiscal year ended December 29, 2024 ("2024") and provided an outlook for the 52-week fiscal year ending December 27, 2026 ("2026").
"2025 was a year of significant progress on a number of fronts for First Watch. In addition to continuing our industry-leading new restaurant growth of nearly 11%, we increased total revenues by more than 20%, which included same-restaurant sales growth of 3.6% and positive same-restaurant traffic," said Chris Tomasso, CEO and President of First Watch. "As we look to 2026 and beyond, we are energized by the growth opportunities across all facets of our business, particularly the expansion of our evolving digital marketing platform."
Highlights for Q4 2025 compared to Q4 2024
-- Total revenues increased 20.2% to $316.4 million in Q4 2025 from $263.3
million in Q4 2024
-- System-wide sales increased 16.1% to $353.1 million in Q4 2025 from
$304.1 million in Q4 2024
-- Same-restaurant sales growth of 3.1%
-- Same-restaurant traffic growth of negative 1.9%
-- Income from operations increased to $9.0 million in Q4 2025 from $3.9
million in Q4 2024
-- Income from operations margin increased to 2.9% in Q4 2025 from 1.5% in
Q4 2024
-- Restaurant level operating profit* increased to $59.6 million in Q4 2025
from $49.0 million in Q4 2024
-- Restaurant level operating profit margin* increased to 19.0% in Q4 2025
from 18.8% in Q4 2024
-- Net income of $15.2 million in Q4 2025 compared to Net income of $0.7
million in Q4 2024
-- Adjusted EBITDA* increased to $33.7 million in Q4 2025 from $24.3 million
in Q4 2024
-- Opened 13 system-wide restaurants (12 company-owned and 1
franchise-owned) across 11 states
________________________
*See Non-GAAP Financial Measures Reconciliations section below.
Highlights for 2025 compared to 2024:
-- Total revenues increased 20.3% to $1.2 billion in 2025 from $1.0 billion
in 2024
-- System-wide sales increased to $1.4 billion in 2025 from $1.2 billion in
2024
-- Same-restaurant sales growth of 3.6%
-- Same-restaurant traffic growth of 0.5%
-- Income from operations decreased to $27.5 million in 2025 from $38.9
million in 2024
-- Income from operations margin decreased to 2.3% in 2025 from 3.9% in 2024
-- Restaurant level operating profit* increased to $224.1 million in 2025
from $201.8 million in 2024
-- Restaurant level operating profit margin* decreased to 18.5% in 2025 from
20.1% in 2024
-- Net income increased to $19.4 million in 2025 from $18.9 million in 2024
-- Adjusted EBITDA* increased to $120.9 million in 2025 from $113.8 million
in 2024
-- Opened 64 system-wide restaurants (55 company-owned and 9
franchise-owned) across 23 states resulting in a total of 633 system-wide
restaurants (560 company-owned and 73 franchise-owned) across 32 states
________________________
*See Non-GAAP Financial Measures Reconciliations section below.
Outlook Fiscal Year 2026
The Company provides the following outlook for the 52-week fiscal year ended December 27, 2026:
-- Same-restaurant sales growth to be between 1% to 3%
-- Total revenue growth of 12%-14%(1)
-- Adjusted EBITDA* in the range of $132 million to $140 million (1)
-- Total of 59 to 63 new system-wide restaurants, including 3 company-owned
restaurant closures (53 to 55 new company-owned restaurants and 9 to 11
new franchise-owned restaurants)
-- Capital expenditures in the range of $150.0 million to $160.0 million
invested primarily in new restaurant projects and planned remodels
The Company reiterates its long-term annual financial targets as follows:
-- Percentage unit growth in the low double digits -- Same-restaurant sales growth of 3.5% -- Restaurant sales growth in the mid-teens -- Adjusted EBITDA percentage growth in the mid-teens
The Company continues to see a long-term opportunity for more than 2,200 restaurants across the United States.
______________________
(1) Includes net impact of approximately 1.0% in total revenue growth and approximately $2.0 million in Adjusted EBITDA associated with acquisitions completed in 2025.
*We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.
Conference Call and Webcast
Chris Tomasso, Chief Executive Officer and President, and Mel Hope, Chief Financial Officer, will host a conference call and webcast today to discuss these financial results for Q4 2025 at 8:00 AM ET.
Interested parties may listen to the conference call via any one of two options:
-- Dial 201-389-0914, which will be answered by an operator
-- Join the webcast at
https://investors.firstwatch.com/news-and-events/events
The webcast will be archived shortly after the call has concluded.
Definitions
The following definitions apply to these terms as used in this release:
System-wide restaurants: the total number of restaurants, including all company-owned and franchise-owned restaurants.
System-wide sales: consists of restaurant sales from our company-owned restaurants and franchise-owned restaurants. We do not recognize the restaurant sales from our franchise-owned restaurants as revenue.
Same-restaurant sales growth: the percentage change in year-over-year restaurant sales (excluding gift card breakage) for the comparable restaurant base, which we define as the number of company-owned First Watch branded restaurants open for 18 months or longer as of the beginning of the fiscal year ("Comparable Restaurant Base"). For the year ended 2025, this operating metric compares the 52-week periods ended December 28, 2025 and December 29, 2024 with the 52-week period ended December 31, 2023, versus the 53-week fiscal year ended December 31, 2023, in order to compare like-for-like periods. For the 52-weeks ended December 28, 2025 and December 29, 2024, there were 381 restaurants and 344 restaurants in our Comparable Restaurant Base. Measuring our same-restaurant sales growth allows Management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors to provide a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of store openings, closings and other transitional changes.
Same-restaurant traffic growth: the percentage change in traffic counts for the 52-week period ended December 28, 2025 and December 29, 2024 as compared to the 52-week period ended December 31, 2023 using the Comparable Restaurant Base, versus the 53-week fiscal year ended December 31, 2023 in order to compare like-for-like periods. Measuring our same-restaurant traffic growth allows Management to evaluate the performance of our existing restaurant base. We believe this measure is useful for investors because same-restaurant traffic provides an indicator as to the development of our brand and the effectiveness of our marketing strategy.
Adjusted EBITDA: a non-GAAP measure, is defined as net income before depreciation and amortization, interest expense, income taxes and items that the Company does not consider in the evaluation of its ongoing core operating performance.
Adjusted EBITDA margin: a non-GAAP measure, is defined as Adjusted EBITDA as a percentage of total revenues.
Restaurant level operating profit: a non-GAAP measure, is defined as restaurant sales, less restaurant operating expenses, which include food and beverage costs, labor and other related expenses, other restaurant operating expenses, pre-opening expenses and occupancy expenses. Restaurant level operating profit excludes corporate-level expenses and other items that we do not consider in the evaluation of the ongoing core operating performance.
Restaurant level operating profit margin: a non-GAAP measure, is defined as Restaurant level operating profit as a percentage of restaurant sales.
About First Watch
First Watch is the leading Daytime Dining concept serving made-to-order breakfast, brunch and lunch using the freshest ingredients available. Guided by its "Follow the Sun" culinary philosophy, First Watch's chef-driven menu rotates multiple times per year to feature the highest-quality flavors at their peak, offering elevated executions of classic favorites, fresh juices like the Kale Tonic, and fan favorites such as the Lemon Ricotta Pancakes, Quinoa Power Bowl and signature Million Dollar Bacon. For every kid's meal served, First Watch proudly donates a portion to organizations and causes making a positive impact to our communities - raising approximately $2.0 million to date. A recipient of many "Best Breakfast" and "Best Brunch" awards, First Watch was voted #1 Best Breakfast by Newsweek's Readers' Choice Awards 2025, and also named 2025 and 2024's #1 Most Loved Workplace in America by the Best Practice Institute - an accolade most recently featured in The Wall Street Journal - after appearing on the list in 2022 and 2023, as well. With a commitment to quality, hospitality and community, First Watch is redefining Daytime Dining across more than 630 First Watch restaurants in 32 states. For more information, visit www.firstwatch.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to any historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "intend," "outlook," "potential," "project," "projection," "plan," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed herein, in our Annual Report on Form 10-K, including "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our other filings with the SEC, accessible on the SEC's website at www.sec.gov and the Investors Relations section of the Company's website at https://investors.firstwatch.com/financial-information/sec-filings. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: our vulnerability to changes in consumer preferences and economic conditions such as inflation and recession; our inability to successfully open new restaurants or establish new markets; our inability to effectively manage our growth; potential negative impacts on sales at our and our franchisees' restaurants as a result of our opening new restaurants in existing markets; a decline in visitors to any of the retail centers, lifestyle centers, or entertainment centers where our restaurants are located; lower than expected same-restaurant sales growth; unsuccessful marketing programs and limited time new offerings; changes in the cost of food; unprofitability or closure of new restaurants or lower than previously experienced performance in existing restaurants; our inability to compete effectively for customers; our vulnerability to food safety and food-borne illness concerns; unsuccessful financial performance of our franchisees, our limited control over our franchisees' operations, our inability to maintain good relationships with our franchisees and conflicts of interest with our franchisees; the geographic concentration of our system-wide restaurant base in the southeast portion of the United States; damage to our reputation and negative publicity; our inability or failure to recognize, respond to and effectively manage the accelerated impact of social media and artificial intelligence; our limited number of suppliers and distributors for several of our frequently used ingredients and shortages or disruptions in the supply or delivery of such ingredients; information technology system failures or breaches of our network security; our failure to comply with federal and state laws and regulations relating to privacy, data protection, advertising and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection, advertising and consumer protection; our potential liability with our gift cards under the property laws of some states; our failure to enforce and maintain our trademarks and protect our other intellectual property; litigation with respect to intellectual property assets; our dependence on our executive officers and certain other key employees; our inability to identify, hire, train and retain qualified individuals for our workforce; our failure to obtain or to properly verify the employment eligibility of our employees; our failure to maintain our corporate culture as we grow; unionization activities among our employees; employment and labor law proceedings; labor shortages or increased labor costs or health care costs; risks associated with leasing property subject to long-term and non-cancelable leases; risks related to our sale of alcoholic beverages; costly and complex compliance with federal, state and local laws, including trade and tax policies; changes in accounting principles applicable to us; our vulnerability to natural disasters, unusual weather conditions, pandemic outbreaks, political events, war and terrorism; our inability to secure additional capital to support business growth; our level of indebtedness; failure to comply with covenants under our credit facility; and uncertainty regarding the Russia and Ukraine war, war and unrest in the Middle East and the related impact on macroeconomic conditions, including inflation, as a result of such conflicts or other related events. For additional discussion of factors that could impact our operational and financial results, please refer to our filings with the SEC, accessible on the SEC's website at www.sec.gov and the Investors Relations section of the Company's website at https://investors.firstwatch.com/financial-information/sec-filings. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements.
Investor Relations Contact
Steven L. Marotta
941-500-1918
investors@firstwatch.com
Media Relations Contact
Jenni Glester
407-864-5823
jglester@firstwatch.com
Non-GAAP Financial Measures (Unaudited)
To supplement the consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we use the following non-GAAP measures, which present operating results on an adjusted basis: (i) Adjusted EBITDA, (ii) Adjusted EBITDA margin, (iii) Restaurant level operating profit and (iv) Restaurant level operating profit margin. Our presentation of these non-GAAP financial measures includes isolating the effects of some items that are either nonrecurring in nature or have no meaningful correlation to our ongoing core operating performance. These supplemental measures of performance are not required by or presented in accordance with GAAP. Management believes these non-GAAP measures provide investors with additional visibility into our operations, facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance, help to identify operational trends and allow for greater transparency with respect to key metrics used by Management in our financial and operational decision making. Our non-GAAP measures may not be comparable to similarly titled measures used by other companies and have important limitations as analytical tools. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP as they may not provide a complete understanding of our performance. These non-GAAP financial measures should be reviewed in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
Management uses Adjusted EBITDA and Adjusted EBITDA margin (i) as factors in evaluating management's performance when determining incentive compensation, (ii) to evaluate the Company's operating results and the effectiveness of our business strategies, (iii) internally as benchmarks to compare the Company's performance to that of its competitors and (iv) to provide investors with additional transparency of the Company's operations. The use of Adjusted EBITDA and Adjusted EBITDA margin as performance measures permit a comparative assessment of the Company's operating performance relative to the Company's performance based on the Company's GAAP results, while isolating the effects of some items that are either nonrecurring in nature or vary from period to period without any correlation to the Company's ongoing core operating performance.
The following tables reconcile Net income and Net income margin, the most directly comparable GAAP measures, to Adjusted EBITDA and Adjusted EBITDA margin for the periods indicated:
FOURTH QUARTER
(in thousands) 2025 2024 2023
------- ------- -------
Net income $ 15,164 $ 699 $ 2,648
Depreciation and
amortization 20,656 15,755 12,231
Interest expense 4,795 3,219 2,271
Income taxes (10,744) 39 2,857
------- ------- -------
EBITDA 29,871 19,712 20,007
Stock-based
compensation, net
of amounts
capitalized(1) 2,834 2,131 2,218
Transaction
expenses, net(2) 313 818 604
Strategic transition
costs(3) 531 889 211
Impairments and loss
on disposal of
assets(4) 137 139 741
Delaware Voluntary
Disclosure
Agreement
Program(5) 1 25 794
Recruiting and
relocation
costs(6) -- 254 50
Insurance proceeds
in connection with
natural disasters,
net((8) () -- 329 --
------- ------- -------
Adjusted EBITDA $ 33,687 $ 24,297 $ 24,625
======= ======= =======
Total revenues $316,352 $263,291 $244,633
Net income margin 4.8% 0.3% 1.1%
Adjusted EBITDA
margin 10.6% 9.2% 10.1%
Additional information
Deferred rent
(income)
expense((9) () $ (28) $ 242 $ 515
FISCAL YEAR
(in thousands) 2025 2024 2023
--------- --------- -------
Net income $ 19,432 $ 18,925 $ 25,385
Depreciation and
amortization 75,011 57,715 41,223
Interest expense 16,699 12,640 8,063
Income taxes (7,299) 9,101 10,690
--------- --------- -------
EBITDA 103,843 98,381 85,361
Stock-based
compensation,
net of amounts
capitalized(1) 10,760 8,525 7,604
Transaction
expenses,
net(2) 2,533 2,587 3,147
Strategic
transition
costs(3) 3,279 1,843 892
Impairments and
loss on
disposal of
assets(4) 448 525 1,359
Delaware
Voluntary
Disclosure
Agreement
Program(5) 55 126 1,250
Recruiting and
relocation
costs(6) -- 888 465
Severance
costs(7) -- 204 26
Insurance
proceeds in
connection with
natural
disasters,
net(8) -- 329 (621)
Loss on
extinguishment
of debt -- 428 --
--------- --------- -------
Adjusted EBITDA $ 120,918 $ 113,836 $ 99,483
========= ========= =======
Total revenues $1,222,501 $1,015,910 $891,551
Net income
margin 1.6% 1.9% 2.8%
Adjusted EBITDA
margin 9.9% 11.2% 11.2%
Additional information
Deferred rent
expense(9) $ 309 $ 1,318 $ 2,090
___________________________
(1) Represents non-cash, stock-based compensation expense, net of amounts capitalized, which is recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(2) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs, costs related to restaurant closures, expenses related to debt, and revaluations of contingent consideration liability.
(3) Represents costs related to process improvements and strategic initiatives. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(4) Represents impairment charges and costs related to the disposal of assets due to retirements, replacements, restaurant closures and natural disasters.
(5) Represents estimated professional service costs incurred in connection with the Delaware Voluntary Disclosure Agreement Program related to unclaimed or abandoned property. These costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(6) Represents costs incurred for hiring qualified individuals. These costs are recorded within General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(7) Severance costs are recorded in General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
(8) Represents insurance recoveries, net of costs incurred, in connection with hurricane damage, which were recorded in Other income, net on the Consolidated Statements of Operations and Comprehensive Income.
(9) Represents the non-cash portion of straight-line rent expense recorded within both Occupancy expenses and General and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income.
Restaurant level operating profit and Restaurant level operating profit margin
Restaurant level operating profit and Restaurant level operating profit margin are not indicative of our overall results, and because they exclude corporate-level expenses, do not accrue directly to the benefit of our stockholders. We will continue to incur such expenses in the future. Restaurant level operating profit and Restaurant level operating profit margin are important measures we use to evaluate the performance and profitability of each operating restaurant, individually and in the aggregate and to make decisions regarding future spending and other operational decisions. We believe that Restaurant level operating profit and Restaurant level operating profit margin provide useful information about our operating results, identify operational trends and allow for transparency with respect to key metrics used by us in our financial and operational decision-making.
The following tables reconcile Income from operations and Income from operations margin, the most directly comparable GAAP financial measures, to Restaurant level operating profit and Restaurant level operating profit margin for the periods indicated:
FOURTH QUARTER
(in thousands) 2025 2024 2023
------- ------- -------
Income from operations $ 9,035 $ 3,861 $ 6,855
Less: Franchise
revenues (2,389) (2,666) (3,591)
Add:
General and
administrative
expenses 31,800 30,743 29,953
Depreciation and
amortization 20,656 15,755 12,231
Transaction
expenses, net(1) 313 818 604
Impairments and loss
on disposal of
assets(2) 137 139 741
Costs in connection
with natural
disasters(3) -- 312 --
------- ------- -------
Restaurant level operating
profit $ 59,552 $ 48,962 $ 46,793
Restaurant sales $313,963 $260,625 $241,042
Income from
operations margin 2.9% 1.5% 2.8%
Restaurant level
operating profit
margin 19.0% 18.8% 19.4%
Additional information
Deferred rent
(income)
expense(4) $ (44) $ 192 $ 466
FISCAL YEAR
--------------------------------------------
(in thousands) 2025 2024 2023
--------- -------
Income from operations $ 27,511 $ 38,907 $ 41,267
Less: Franchise
revenues (10,328) (11,555) (14,459)
Add:
General and
administrative
expenses 128,950 113,270 103,121
Depreciation and
amortization 75,011 57,715 41,223
Transaction
expenses,
net(1) 2,533 2,587 3,147
Impairments and
loss on
disposal of
assets(2) 448 525 1,359
Costs in
connection with
natural
disasters(3) -- 312 --
--------- --------- -------
Restaurant level
operating profit $ 224,125 $ 201,761 $175,658
Restaurant sales $1,212,173 $1,004,355 $877,092
Income from
operations
margin 2.3% 3.9% 4.7%
Restaurant level
operating
profit margin 18.5% 20.1% 20.0%
Additional information
Deferred rent
expense(4) $ 167 $ 1,119 $ 1,891
____________________________
(1) Represents costs incurred in connection with the acquisition of franchise-owned restaurants, secondary offering costs, costs related to restaurant closures, expenses related to debt and revaluations of contingent consideration liability.
(2) Represents impairment charges and costs related to the disposal of assets due to retirements, replacements, restaurant closures and natural disasters.
(3) Represents costs incurred in connection with hurricane damage. The costs include inventory spoilage and labor costs, which were recorded in Food and beverage costs and Labor and other related expenses, respectively. on the Consolidated Statements of Operations and Comprehensive Income.
(4) Represents the non-cash portion of straight-line rent expense recorded within Occupancy expenses on the Consolidated Statements of Operations and Comprehensive Income.
FIRST WATCH RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(Unaudited)
Fourth Quarter
2025 2024 2023
---------- ---------- ----------
Revenues:
Restaurant sales $ 313,963 $ 260,625 $ 241,042
Franchise revenues 2,389 2,666 3,591
---------- ---------- ----------
Total revenues 316,352 263,291 244,633
---------- ---------- ----------
Operating costs and
expenses:
Restaurant operating
expenses (exclusive
of depreciation and
amortization shown
below):
Food and
beverage
costs 71,743 59,245 54,346
Labor and
other related
expenses 105,093 87,706 81,698
Other
restaurant
operating
expenses 47,683 38,736 36,905
Occupancy
expenses 26,939 21,961 18,450
Pre-opening
expenses 2,953 4,327 2,850
General and
administrative
expenses 31,800 30,743 29,953
Depreciation and
amortization 20,656 15,755 12,231
Impairments and loss
on disposal of
assets 137 139 741
Transaction
expenses, net 313 818 604
---------- ---------- ----------
Total
operating
costs and
expenses 307,317 259,430 237,778
---------- ---------- ----------
Income from
operations 9,035 3,861 6,855
Interest expense (4,795) (3,219) (2,271)
Other income, net 180 96 921
---------- ---------- ----------
Income before
income taxes 4,420 738 5,505
Income tax benefit
(expense) 10,744 (39) (2,857)
---------- ---------- ----------
Net income $ 15,164 $ 699 $ 2,648
========== ========== ==========
Net income $ 15,164 $ 699 $ 2,648
Other comprehensive
income:
Unrealized
gain (loss)
on
derivatives 51 2,722 (1,986)
Income tax
related to
other
comprehensive
(loss)
income (14) (679) 494
---------- ---------- ----------
Other comprehensive
income (loss) 37 2,043 (1,492)
---------- ---------- ----------
Comprehensive income $ 15,201 $ 2,742 $ 1,156
========== ========== ==========
Net income per
common share -
basic $ 0.25 $ 0.01 $ 0.04
Net income per
common share -
diluted $ 0.24 $ 0.01 $ 0.04
Weighted average
number of common
shares outstanding
- basic 61,054,021 60,636,071 59,827,847
Weighted average
number of common
shares outstanding
- diluted 62,877,592 62,335,821 61,688,871
FIRST WATCH RESTAURANT GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
FISCAL YEAR
2025 2024 2023
---------- ---------- ----------
Revenues:
Restaurant sales $ 1,212,173 $ 1,004,355 $ 877,092
Franchise revenues 10,328 11,555 14,459
---------- ---------- ----------
Total revenues 1,222,501 1,015,910 891,551
---------- ---------- ----------
Operating costs and
expenses:
Restaurant operating
expenses (exclusive
of depreciation and
amortization shown
below):
Food and
beverage
costs 280,098 223,097 197,374
Labor and other
related
expenses 405,544 335,038 294,010
Other
restaurant
operating
expenses 188,685 151,968 134,477
Occupancy
expenses 100,788 82,694 68,400
Pre-opening
expenses 12,933 10,109 7,173
General and
administrative
expenses 128,950 113,270 103,121
Depreciation and
amortization 75,011 57,715 41,223
Impairments and loss
on disposal of
assets 448 525 1,359
Transaction expenses,
net 2,533 2,587 3,147
---------- ---------- ----------
Total operating
costs and
expenses 1,194,990 977,003 850,284
---------- ---------- ----------
Income from
operations 27,511 38,907 41,267
Interest expense (16,699) (12,640) (8,063)
Other income, net 1,321 1,759 2,871
---------- ---------- ----------
Income before
income taxes 12,133 28,026 36,075
Income tax benefit
(expense) 7,299 (9,101) (10,690)
---------- ---------- ----------
Net income $ 19,432 $ 18,925 $ 25,385
========== ========== ==========
Net income $ 19,432 $ 18,925 $ 25,385
Other comprehensive
(loss) income:
Unrealized
(loss) gain on
derivatives (869) 301 (889)
Income tax
related to
other
comprehensive
(loss) income 215 (75) 222
---------- ---------- ----------
Other comprehensive
(loss) income (654) 226 (667)
---------- ---------- ----------
Comprehensive income $ 18,778 $ 19,151 $ 24,718
========== ========== ==========
Net income per common
share - basic $ 0.32 $ 0.31 $ 0.43
Net income per common
share - diluted $ 0.31 $ 0.30 $ 0.41
Weighted average
number of common
shares outstanding -
basic 60,963,587 60,365,393 59,531,404
Weighted average
number of common
shares outstanding -
diluted 62,842,519 62,351,222 61,191,613
Same-Restaurant Sales Growth and Same-Restaurant Traffic Growth
THIRTEEN COMPARABLE WEEKS SAME-RESTAURANT SALES SAME-RESTAURANT RESTAURANT ENDED GROWTH TRAFFIC GROWTH BASE ----------- --------------------- --------------- ---------- December 28, 2025 3.1% * (1.9)% * 381 December 29, 2024 (0.3)% * (3.0)% * 344 December 31, 2023 5.0% ** (1.3)% ** 327
___________________
(*Comparison to the 13 weeks ended December 31, 2023, is provided for enhanced comparability.)
(**Thirteen weeks ended December 31, 2023.)
(END) Dow Jones Newswires
February 24, 2026 09:50 ET (14:50 GMT)