$FWRG

First Watch Restaurant Group, Inc.

CIK:0001789940|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025	Jun. 28, 2026	Jun. 29, 2025
Revenues
Total revenues	$ 354,672	$ 307,887	$ 685,631	$ 590,127
Restaurant operating expenses (exclusive of depreciation and amortization shown below):
Food and beverage costs	82,593	71,978	156,903	138,625
Labor and other related expenses	115,723	101,310	226,332	198,064
Other restaurant operating expenses	55,557	46,603	107,461	90,862
Occupancy expenses	28,345	24,809	55,755	47,958
Pre-opening expenses	3,315	3,507	6,372	6,167
General and administrative expenses	38,727	33,185	78,672	63,404
Depreciation and amortization	21,839	18,136	43,235	34,693
Impairments and loss on disposal of assets	114	127	267	136
Transaction and restructuring expenses, net	332	919	1,508	1,792
Total operating costs and expenses	346,545	300,574	676,505	581,701
Income from operations	8,127	7,313	9,126	8,426
Interest expense	(4,892)	(4,003)	(9,670)	(7,337)
Other income, net	133	266	478	950
Income (loss) before income taxes	3,368	3,576	(66)	2,039
Income tax expense	(1,029)	(1,470)	(280)	(762)
Net income (loss)	2,339	2,106	(346)	1,277
Net income (loss)	2,339	2,106	(346)	1,277
Other comprehensive income (loss):
Unrealized gain (loss) on derivatives	314	(125)	1,050	(1,008)
Income tax related to other comprehensive income (loss)	(78)	31	(260)	251
Comprehensive income	$ 2,575	$ 2,012	$ 444	$ 520
Net income (loss) per common share - basic (in dollars per share)	$ 0.04	$ 0.03	$ (0.01)	$ 0.02
Net income (loss) per common share - diluted (in dollars per share)	$ 0.04	$ 0.03	$ (0.01)	$ 0.02
Weighted average common shares outstanding - basic (in shares)	61,669,719	61,005,648	61,456,606	60,886,525
Weighted average common shares outstanding - diluted (in shares)	62,296,801	62,579,658	61,456,606	62,732,072
Restaurant sales
Revenues
Total revenues	$ 351,481	$ 304,983	$ 679,629	$ 584,574
Franchise revenues
Revenues
Total revenues	$ 3,191	$ 2,904	$ 6,002	$ 5,553

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

6 Months Ended

Jun. 28, 2026

Jun. 29, 2025

Cash flows from operating activities

Net income (loss)

$ (346)

$ 1,277

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

43,235

34,693

Stock-based compensation, net of amounts capitalized

7,049

5,049

Non-cash operating lease costs

18,242

15,779

Deferred income taxes

(976)

(466)

Amortization of debt discount and deferred issuance costs

341

322

Impairments and loss on disposal of assets

267

136

Changes in assets and liabilities, net of effects of business combinations:

Accounts receivable

1,751

Inventory

(627)

(465)

Prepaid expenses

(2,602)

(1,319)

Deposits and other assets, current and long-term

1,696

(1,177)

Accounts payable

1,576

545

Accrued liabilities and other long-term liabilities

7,511

8,818

Accrued compensation and deferred payroll taxes

(2,020)

(1,412)

Deferred revenues, current and long-term

(2,368)

(2,659)

Operating lease liabilities

(9,128)

(1,302)

Net cash provided by operating activities

61,896

59,570

Cash flows from investing activities

Capital expenditures

(69,849)

(77,636)

Acquisitions, net of cash acquired

(171)

(54,833)

Purchase of intangible assets

(486)

(380)

Net cash used in investing activities

(70,506)

(132,849)

Cash flows from financing activities

Proceeds from borrowings on revolving credit facility

386,000

127,000

Repayments of borrowings on revolving credit facility

(372,000)

(91,500)

Proceeds from issuance of long-term debt

27,500

Repayments of long-term debt, including finance lease liabilities

(6,406)

(4,159)

Proceeds from exercise of stock options, net of employee taxes paid

255

303

Net cash provided by financing activities

7,849

59,144

Net decrease in cash and cash equivalents

(761)

(14,135)

Cash and cash equivalents and restricted cash, beginning of period

21,246

33,312

Cash and cash equivalents and restricted cash, end of period

20,485

19,177

Supplemental cash flow information

Cash paid for interest, net of amounts capitalized

9,235

2,792

Cash paid for income taxes, net of refunds

1,590

1,015

Supplemental disclosures of non-cash investing and financing activities

Leased assets obtained in exchange for new operating lease liabilities

^[1]

60,981

83,433

Leased assets obtained in exchange for new finance lease liabilities

2,544

4,246

Remeasurements and terminations of operating lease assets and lease liabilities

2,781

3,540

Remeasurements and terminations of finance lease assets and lease liabilities

(63)

(407)

Increase (decrease) in liabilities from acquisition of property, fixtures and equipment

$ 3,371

$ (581)

[1]	Leased assets and liabilities obtained during the twenty-six weeks ended June 29, 2025 include $23.6 million from business acquisitions.

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 28, 2026	Dec. 28, 2025
Current assets:
Cash and cash equivalents	$ 20,485	$ 21,246
Accounts receivable	6,813	6,859
Inventory	7,801	7,174
Prepaid expenses	10,547	7,945
Deposits and other current assets	1,883	5,856
Total current assets	47,529	49,080
Goodwill	420,208	420,208
Intangible assets, net	170,768	174,908
Operating lease right-of-use assets	660,068	614,548
Property, fixtures and equipment, net of accumulated depreciation of $320,862 and $285,706, respectively	515,418	478,451
Other long-term assets	6,848	4,834
Total assets	1,820,839	1,742,029
Current liabilities:
Accounts payable	10,277	8,701
Accrued liabilities	46,508	38,496
Accrued compensation	22,261	24,281
Deferred revenues	4,384	6,778
Current portion of operating lease liabilities	79,266	75,034
Current portion of long-term debt	14,843	13,309
Interest rate swap liabilities, current	348	900
Total current liabilities	177,887	167,499
Operating lease liabilities	701,656	651,254
Long-term debt, net	277,690	269,071
Deferred income taxes	21,256	21,972
Derivative liabilities	59	557
Other long-term liabilities	8,122	5,397
Total liabilities	1,186,670	1,115,750
Commitments and contingencies (Note 12)
Equity:
Preferred stock; $0.01 par value; 10,000,000 shares authorized; none issued and outstanding	0	0
Common stock; $0.01 par value; 300,000,000 shares authorized; 61,712,435 and 61,131,978 shares issued and outstanding at June 28, 2026 and December 28, 2025, respectively	617	611
Additional paid-in capital	668,593	661,153
Accumulated deficit	(34,736)	(34,390)
Accumulated other comprehensive loss	(305)	(1,095)
Total equity	634,169	626,279
Total liabilities and equity	$ 1,820,839	$ 1,742,029