First Watch Restaurant Group, Inc.FWRG

First Watch Restaurant Group, Inc. Segments Disclosure

10-KFiled Feb 24, 20262 min read
Segment Information
Management determined the Company’s single operating segment on the basis that the Company’s Chief Operating Decision Maker (the “CODM”), the Chief Executive Officer, assesses performance and allocates resources at the Company's consolidated level. The Company’s CODM uses consolidated net income to evaluate performance and make key operating decisions, such as investments in our long-term growth strategy. This measure is also used to monitor budget against actual results.
Segment accounting policies are consistent with those described in Note 2, Summary of Significant Accounting Policies. Revenue is derived from sales of food and beverage, net discounts, by our restaurants as well as franchise royalty, system fund and initial franchise fees. The measure of total assets for the reporting segment is reported on the consolidated balance sheets as total assets. The measure of capital expenditures for the reporting segment is reported on the consolidated statements of cash flows as total capital expenditures.
The following table details consolidated net income for the segment for the periods indicated:
FISCAL YEAR
(in thousands)202520242023
Total revenues$1,222,501 $1,015,910 $891,551 
Less:
Food and beverage costs280,098 223,097 197,374 
Labor and other related expenses405,544 335,038 294,010 
Other restaurant operating expenses188,685 151,968 134,477 
Occupancy expenses100,788 82,694 68,400 
Pre-opening expenses12,933 10,109 7,173 
Stock-based compensation, net of amounts capitalized10,760 8,525 7,604 
General and administrative expenses(1)
118,190 104,745 95,517 
Depreciation and amortization75,011 57,715 41,223 
Other segment items(2)
2,981 3,112 4,506 
Interest expense16,699 12,640 8,063 
Other income, net(1,321)(1,759)(2,871)
Income tax (benefit) expense(7,299)9,101 10,690 
Net income$19,432 $18,925 $25,385 
(1) General and administrative expenses excludes stock-based compensation, net of amounts capitalized, presented separately.
(2) Other segment items included in segment net income primarily includes transaction expenses, and impairments and loss on disposal of assets.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Mar 11, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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