First Watch Restaurant Group, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>First Watch Restaurant Group, Inc. filed its 2023 10-K report detailing its financial performance and operations.</b>

AI Summary

First Watch Restaurant Group, Inc. (FWRG) filed a Annual Report (10-K) with the SEC on March 5, 2024. Filed 10-K for the fiscal year ended December 31, 2023. Company name: First Watch Restaurant Group, Inc. Incorporated in Delaware. Business address: 8725 Pendery Place, Suite 201, Bradenton, FL 34201. Phone number: 941-907-9800.

Why It Matters

For investors and stakeholders tracking First Watch Restaurant Group, Inc., this filing contains several important signals. This filing provides a comprehensive overview of the company's financial health and strategic direction for the past fiscal year. Investors and analysts can use this report to assess the company's performance, identify risks, and make informed investment decisions.

Risk Assessment

Risk Level: low — First Watch Restaurant Group, Inc. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant new risks or material changes beyond routine disclosures.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand First Watch's operational performance and future outlook.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240305 — Filing Date (Filed as of date)
• 123 — Public Document Count (Total number of public documents)
• 5812 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• First Watch Restaurant Group, Inc. (company) — Filer name
• 8725 Pendery Place, Suite 201, Bradenton, FL 34201 (address) — Business address
• 941-907-9800 (phone) — Business phone
• AI Fresh Super Holdco, Inc. (company) — Former company name
• Al Fresh Super Holdco, Inc. (company) — Former company name

FAQ

Industry Context

First Watch Restaurant Group operates in the eating places sector, focusing on breakfast, brunch, and lunch.

Regulatory Implications

The filing adheres to SEC regulations for annual reports (Form 10-K) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the company's financial statements for revenue, net income, and other key performance indicators.
2. Review the risk factors section for potential challenges and uncertainties.
3. Examine the business description for strategic initiatives and operational details.

Year-Over-Year Comparison

This is the initial filing of the 10-K for the fiscal year ending December 31, 2023, following previous filings.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value FWRG The Nasdaq Stock Market
• $2.3 million — le generating an average unit volume of $2.3 million per restaurant in 2023 in only 7.5 hour
• $1.0 million — ncer research. To date, we have donated $1.0 million towards these important efforts. Grow
• $35,000 — al franchise fee for each restaurant is $35,000 to $40,000. Franchisees are required to
• $40,000 — e fee for each restaurant is $35,000 to $40,000. Franchisees are required to pay 4.0% o

Filing Documents

• fwrg-20231231.htm (10-K) — 2043KB
• exhibit1012-formofemployee.htm (EX-10.12) — 41KB
• exhibit1013-formofemployee.htm (EX-10.13) — 41KB
• a211listofsubsidiaries.htm (EX-21.1) — 7KB
• consentofindependentregist.htm (EX-23.1) — 3KB
• a311section302certificatio.htm (EX-31.1) — 11KB
• a321section906certificatio.htm (EX-32.1) — 6KB
• a312section302certificatio.htm (EX-32.2) — 11KB
• exhibit971incentive-basedc.htm (EX-97.1) — 29KB
• fwrg-20231231_g1.jpg (GRAPHIC) — 36KB
• fwrg-20231231_g2.jpg (GRAPHIC) — 563KB
• 0001789940-24-000012.txt (&nbsp;) — 12084KB
• fwrg-20231231.xsd (EX-101.SCH) — 75KB
• fwrg-20231231_cal.xml (EX-101.CAL) — 127KB
• fwrg-20231231_def.xml (EX-101.DEF) — 308KB
• fwrg-20231231_lab.xml (EX-101.LAB) — 898KB
• fwrg-20231231_pre.xml (EX-101.PRE) — 626KB
• fwrg-20231231_htm.xml (XML) — 1539KB

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 34

Cybersecurity

Item 1C. Cybersecurity 34

Properties

Item 2. Properties 35

Legal Proceedings

Item 3. Legal Proceedings 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36

Reserved

Item 6. Reserved 37

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 57

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 57

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 95

Controls and Procedures

Item 9A. Controls and Procedures 96

Other Information

Item 9B. Other Information 98

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 98 PART III 98

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 99

Executive Compensation

Item 11. Executive Compensation 99

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 99

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 99 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 100

Form 10-K Summary

Item 16. Form 10-K Summary 101

Signatures

Signatures 102 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the "Annual Report on Form 10-K") contains forward-looking statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance, such as those contained in the section titled " Management's Discussion and Analysis of Financial Condition and Results of Operations ." Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: our vulnerability to changes in consumer preferences and economic conditions such as inflation and recession; our inability to open new restaurants in new and existing markets; the number of visitors to areas where our restaurants are located may decline; our inability to generate same-restaurant sales growth; our marketing programs and limited-time menu offerings may fail to generate profits; shortages or disruptions in the supply or delivery of frequently used food items or increases in the cost of our frequently used food items; our inability to prevent ins

Business

Item 1. Business First Watch Restaurant Group, Inc. is a Delaware holding company that was acquired by funds affiliated with or managed by Advent International L.P. ("Advent") in August 2017 (the "Advent Acquisition"). Unless the context otherwise requires, "we," "us," "our," "First Watch," the "Company," "Management" and other similar references refer to First Watch Restaurant Group, Inc. and, unless otherwise stated, all of its subsidiaries. Overview Since opening our doors in 1983, we have been a pioneer in Daytime Dining, serving made-to-order breakfast, brunch and lunch using the freshest of ingredients. We have built our brand on our commitment to operational excellence, our culinary mission centered around a fresh, continuously evolving menu, and our "You First" culture. Our focus on one daytime shift enables us to optimize restaurant operations while generating an average unit volume of $2.3 million per restaurant in 2023 in only 7.5 hours per day. This daytime focus also provides us with a competitive advantage allowing us to attract and retain employees who are passionate about hospitality and drawn to our "No Night Shifts Ever" approach, among other attractive benefits. As of December 31, 2023, we had a total of 524 restaurants across 29 states, 425 of which were company-owned and 99 were franchise-owned. We "Follow the Sun" Every morning, we arrive at the crack of dawn to slice and juice fresh fruits and vegetables, bake muffins, brew our fresh coffee and whip up our French Toast batter from scratch. Every menu item is made-to-order and prepared with care. We do not use microwave ovens, heat lamps or deep fryers in our kitchens. At First Watch, we are driven by a pursuit of freshness as is highlighted by our culinary and sourcing philosophy to "Follow the Sun." With this philosophy our menu, which is inspired by the seasons, changes five times per year. Our rotating seasonal menu is commonly cited by our customers as a core element of the Fir

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View this 10-K filing on SEC EDGAR