First Watch Restaurant Group, Inc. Earnings Per Share Disclosure
| FISCAL YEAR | |||||||||||||||||
| (in thousands, except share and per share data) | 2025 | 2024 | 2023 | ||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 19,432 | $ | 18,925 | $ | 25,385 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average common shares outstanding - basic | 60,963,587 | 60,365,393 | 59,531,404 | ||||||||||||||
| Weighted average common shares outstanding - diluted | 62,842,519 | 62,351,222 | 61,191,613 | ||||||||||||||
| Net income per common share - basic | $ | 0.32 | $ | 0.31 | $ | 0.43 | |||||||||||
| Net income per common share - diluted | $ | 0.31 | $ | 0.30 | $ | 0.41 | |||||||||||
| Stock options outstanding not included in diluted net income per common share as their effect is anti-dilutive | 12,552 | 12,552 | 13,656 | ||||||||||||||
| Restricted stock units outstanding not included in diluted net income per common share as their effect is anti-dilutive | 7 | 336,410 | 355 | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.