What changed in this filing

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Item 1. Business

2026-02-24 compared with 2025-03-11 · 103 added, 106 removed, 127 unchanged (62% of the section changed)

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”).

is a Delaware holding company.

Unless the context otherwise requires, “we,” “us,” “our,” “First Watch,” the “Company,” “Management” and other similar references refer to First Watch Restaurant Group, Inc.

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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 $2.2 million p er restaurant in 2024 in only 7.5 hours per day.

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 2025 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 29, 2024, we had a to tal of 572 restaurants across 29 states, 489 of which were company-owned and 83 were franchise-owned.

As of December 28, 2025, we had a to tal of 633 restaurants across 32 states, 560 of which were company-owned and 73 of which were franchise-owned.

We “Follow the Sun”

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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 First Watch experience and has included favorites such as the Sunny Seoul Hash, Strawberry Tres Leches French Toast and the Brooklyn Breakfast Sandwich.

These seasonal items are offered alongside of our award-winning chef-driven menu including elevated executions of classic favorites for breakfast, brunch and lunch, such as our protein-packed Breakfast Quinoa, Farmstand Breakfast Tacos, and Avocado Toast.

Our rotating seasonal menu is commonly cited by our customers as a core element of the First Watch experience and has included favorites such as the Parmesan and Prosciutto Toast, Chimichurri Steak and Eggs Hash, and the Brooklyn Breakfast Sandwich.

These seasonal items are offered alongside our award-winning chef-driven menu that includes elevated executions of classic favorites for breakfast, brunch and lunch, such as our protein-packed Breakfast Quinoa Bowl, Chickichanga and Avocado Toast.

Our menu also features fresh juices, that we juice each morning, including Morning Meditation and Kale Tonic.

For four decades, we have cultivated an organizational culture built on our foundational concept of “You First,” which puts serving others above all else.

For over four decades, we have cultivated an organizational culture built on our foundational concept of “You First,” which puts serving others above all else.

As a company, we put our employees first and empower them to do whatever it takes to put our customers first.

As evidenced by our vision to “Create Amazing Opportunities for Our People,” we also work hard to provide opportunities for advancement and meaningful relationships, and we prioritize personal and professional growth so that our people can thrive.

We believe our approach and operating model have enabled us to retain and attract the best and brightest employees in the industry and are key factors in our ability to meet the growing demand we are seeing across the country.

As a result, we are proud of the many people-focused awards and accolades we have received over the past few decades, most recently including the following:

• Ranked the #1 Most Loved Workplace® in 2024 by Newsweek and the Best Practice Institute

• Recognized with ADP’s Culture at Work Award (2022)

• Named the top restaurant brand in Yelp’s inaugural list of the top 50 most-loved brands in the U.S (2023)

• Ranked # 1 in a five-year study of employee surveys on Glassdoor published by William Blair for work/life balance and we were in the top 10 in overall employee satisfaction, among casual dining concepts (2022)

We also extend our You First culture by giving back to important organizations and causes that are meaningful to our people.

Most notably, First Watch is proud of two key efforts to give back in a meaningful way:

As evidenced by our vision to “Create Amazing Opportunities for Our People,” we also work hard to provide our employees with opportunities for advancement and meaningful relationships, and we prioritize personal and professional growth so that our people can thrive.

We believe our approach and operating model have enabled us to retain and attract the best and brightest employees in the industry and are key factors in our ability to meet our growing demand across the country.

As a result, we are proud of the many people-focused awards and accolades we have received over the past few decades.

For four consecutive years, First Watch has been named a Top 100 Most Loved Workplace® by the Best Practice Institute , and in 2025, was named the #1 Most Loved Workplace for the second year in a row, as featured in The Wall Street Journal .

Also, in 2025, First Watch was named one of Yelp’s Most Loved Brands nationwide.

We also extend our You First culture by giving back to important organizations and causes that are meaningful to our people and our communities.

In addition to various local philanthropic efforts in the communities we serve, First Watch focuses its giving through key efforts designed to create positive impact both externally and within our organization:

• Project Sunrise:

Through this initiative of passion, we source our coffee beans from women-owned farms in Colombia, and we pay an annual quality incentive bonus to farmers to further support their high-quality production.

Through this initiative, we source our coffee beans from women-owned farms in Colombia, and we pay an annual quality incentive bonus to farmers to further support their high-quality production.

This program in turn empowers these women leaders to reinvest in their communities.

• Pediatric Cancer Research:

Through each sale of a First Watch kid’s meal, we donate a portion of proceeds to the V Foundation in order to support and advance pediatric cancer research.

To date, we have donated $1.4 million towards these important efforts.

We donate a portion of the proceeds from each sale of a First Watch kid’s meal to the V Foundation in order to support and advance pediatric cancer research.

As of December 28, 2025, we have donated approximately $2.0 million towar d this important effort.

• The You First Fund:

Established in 2020, the You First Fund provides grants to eligible team members experiencing personal hardship related to qualifying disasters.

The fund is intended to support employees and their immediate families during their times of most significant need and is funded through a portion of the proceeds from each kid’s meal sale, along with contributions from the Company, our employees and others.

Since its inception, this fund has provided our employees with ove r $1.1 million in hardship grants.

Growth Strategies

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We believe First Watch has the potential for more than 2,200 restaurants in the continental United States.

In 2021, First Watch was recognized by FSR Magazine as the fastest-growing full-service restaurant company in the United States based on unit growth and in 2024, we continued to realize that potential by openin g 50 new company-owned and franchise-owned restaurants, which we collectively refer to as “system-wide” restaurants, across 19 states.

Our growth strategy targets an accelerating pace of new system-wide restaurant development with a long-term goal of annual percentage growth in the low double digits.

In 2021, First Watch was recognized by FSR Magazine as the fastest-growing full-service restaurant company in the United States based on unit growth.

In 2025, we continued to realize that potential by openin g 64 new company-owned and franchise-owned restaurants, which we collectively refer to as “system-wide” restaurants, acros s 23 s tates.

Our growth strategy contemplates increasing the annual number of new system-wide restaurant openings.

In selecting new locations, we evaluate specific market characteristics, demographics, traffic patterns, co-tenants and growth potential.

Our development approach has proven that First Watch has tremendous portability across markets, with new restaurants boasting consistent and a strong average unit volume across all geographies.

Our development approach has proven that First Watch has tremendous portability across markets, with new restaurants boasting a consistent and strong average unit volume across all geographies.

First Watch’s top 10% of restaurants in terms of sales, span 13 states and 24 designated market areas.

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Acquisitions of Franchise-Owned Restaurants

Our long-term growth strategy includes the acquisitions of First Watch restaurants operated by certain of our franchisees.

Our long-term growth strategy includes the acquisition of First Watch restaurants operated by certain of our franchisees.

To that end, during 2025, we acquired 19 o perating restaurants along with development and territory rights in two separate transactions.

We have also signed agreements to acquire a total of 19 additional restaurants from franchisees.

See Note 22, Subsequent Events , in the accompanying notes to the consolidated financial statements included in Item 8 of Part II of this Form 10-K for additional information.

We believe the Company’s operation of the restaurants acquired from our franchisees as well as development in the reacquired territory, provides substantial opportunity to realize new Company value.

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Drive Restaurant Traffic and Build Sales

Our attractive return on invested capital starts with an intention to build sales and traffic through a focus on the core elements of the First Watch experience:

serving incredible food, with memorable service, in an inviting atmosphere.

Our return on invested capital reflects our disciplined focus on building sales and traffic through the core elements of the First Watch experience - serving high-quality food, delivering memorable service, and providing an inviting atmosphere.

• Delivering an Excellent On-Premise Dining Experience.

Excellence in restaurant-level execution, recognized by customers and reinforced by the hundreds of accolades we have received, increases the visit frequency of our customers, promotes trial by new consumers and ultimately encourages loyalty.

Excellence in restaurant-level execution, recognized by customers and reinforced by the many accolades we have received, increases the visit frequency of our customers, promotes trial by new consumers and ultimately encourages loyalty.

Our single menu, throughout the day, streamlines our supply chain and restaurant operations, simplifies our employee training and provides for a consistent and superior customer dining experience.

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We believe that technology can continue to elevate the First Watch experience for both our employees and customers.

To date we have implemented technologies that have enhanced accessibility by adding the functionality for direct ordering of takeout as well as third party delivery integrations.

To date we have implemented technologies that have enhanced accessibility by adding the functionality for direct ordering of takeout as well as third-party delivery

integrations.

In 2025 and 2024, our total off-premises sales accounted for 19.0% and 17.5%, respectively, of our total restaurant sales.

In-restaurant dining sales continue to strengthen, indicating continued customer demand for experiences and connection.

In 2022 we implemented kitchen display screens in all company-owned

restaurants to simplify the employee experience and improve back-of house efficiency.

Along with many other operational initiatives, processes and procedures, we continue to see opportunity to use technology to elevate the customer experience and simplify tasks for our teams.

In February 2024, we completed the roll-out of pay-at-the-table technology at all company-owned restaurants.

Through a QR code on our receipts, customers can now seamlessly pay using Apple Pay, Google Pay or a credit or debit card, reducing bottlenecks at host stands, particularly during peak weekend hours.

Through a QR code on our receipts, customers can seamlessly pay using Apple Pay, Google Pay or a credit or debit card, reducing bottlenecks at host stands, particularly during peak weekend hours.

In 2025 we relaunched our customer facing technology platforms including a new ordering system, a new waitlist experience as well as a redeveloped app that we believe provides enhanced tools and experiences to remove bottlenecks and deliver a better experience.

Amongst a variety of other benefits, customers can choose to auto check-in from the waitlist as they approach the restaurant, utilize new nutrition and allergen filters, and store personalized offers in a dynamic mobile wallet.

We view these innovations as critical to maintaining relevancy across generations and ensuring that First Watch evolves with societal trends.

• Continued Menu Innovation.

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When it comes to sourcing our produce, we are guided by a core philosophy:

“Follow the Sun.” Our five highly anticipated seasonal menus drive customer frequency.

This means that we welcome each season with exceptional ingredients harvested when they are most flavorful and fresh.

In addition, successful new platform introductions such as our Fresh Juice program, our Shareables, our alcohol program and our premium iced coffees add incremental sales opportunities and capitalize on growing trends.

◦ Offer Alcohol as Only First Watch Can .

Our alcohol platform is unique and reflects our culinary innovation through combinations of fresh juices and ingredients with a variety of liquors.

We have continued to expand on this strategic initiative and acquire the necessary licenses.

As of December 29, 2024, our alcohol menu was offered in about 90% of our system-wide restaurants.

As we have finalized the initial stage of adding alcohol to the majority of our system, our alcohol platform offers the opportunity to innovate alongside our constantly evolving culinary platforms and seasonal menus.

“Follow the Sun.” We believe our highly anticipated seasonal menus drive customer frequency, as we welcome each season with exceptional ingredients harvested when they are most flavorful and fresh.

In addition, successful platform introductions such as our Fresh Juice program, our Shareables, our alcohol program and our premium iced coffees add incremental sales opportunities and capitalize on growing trends.

Our longstanding practice of rotating our menu four to five times annually, serves as an ongoing source of innovation and learning as we continue to learn what items are embraced by our customers and teams, allowing us the ability to use past items to refresh and improve our core menu.

We continue to seek ways to enhance our seasonal menu and in early 2026, we relaunched both a new seasonal and core menu rooted in feedback from both our employees and our customers.

• Increasing Our Brand Awareness.

For over 40 years, our awareness has grown primarily through word-of-mouth as our service, menu and environment created loyal fans.

While we believe that organic growth of awareness contributes to our local feel, we also recognize the potential of strategically marketing in appropriate channels to accelerate our brand awareness.

For over 40 years, our brand awareness has grown primarily through word-of-mouth as our service, menu and environment created loyal fans.

While we believe that organic growth of brand awareness contributes to our local feel, we also recognize the potential of strategically marketing in appropriate channels to accelerate our brand awareness.

We continue to build expertise in, and deploy tested strategies for, utilizing targeted digital channels to reach certain attractive customer segments and build top-of-mind awareness.

By using our first party data, we have been able to identify higher frequency customers and target similar customers with digital media vehicles.

These demand generation strategies have aided us to “balance out” our customer base in recent years by growing penetration with Millennial and Gen Z segments.

These channels include paid social media, connected TV, paid search, programmatic digital and digital out-of-home to name a few.

In 2025, we began to increase investment in these digital channels as we have tested and learned the appropriate spending levels and media mix to drive traffic and achieve a return on the investment.

In addition, by using our first party data, we have been able to identify higher frequency customers and target similar customers with digital media vehicles.

These demand generation strategies have aided in “balancing out” our customer base in recent years by growing penetration with Millennial and Gen Z segments.

• Customer Technology & Customer Data:

We accelerated the implementation of customer data acquisition systems in order to better inform the habits and behaviors of our customers.

We accelerated the implementation of customer data acquisition systems in order to better inform us of the habits and behaviors of our customers.

With the large increase in remote digital orders, we also sought to digitize in-restaurant orders for the purpose of creating an omnichannel view of the First Watch customer.

By integrating remote waitlist, remote orders, tokenized credit card transactions and WiFi into one system, we now have the ability to better understand trial and frequency.

Since implementation of these systems, we have gathered customer information for over 17.9 million unique customer profiles, 7.7 million of whom have opted for direct communication from First Watch.

Since we implemented these systems, we have gathered information for millions of customer profiles, approximately 7.6 million of whom have opted for direct communication from First Watch.

The advances in these foundational systems have allowed us to learn more about our customers and the behaviors that ultimately drive lifetime customer value.

We see this as a long-term opportunity to drive increased visit frequency as we have the ability to build new customer technology features that elevate the customer experience.

Quality and Food Safety

First Watch emphasizes high food quality and a commitment to food safety in each restaurant through the careful training and supervision of personnel and by following rigorous quality and cleanliness standards.

Food preparation and cleaning procedures are defined, monitored and maintained by our quality assurance department.

We contract with third-party inspectors to regularly monitor restaurant performance through unannounced non-biased food safety assessments with program standards that meet or exceed those of local health departments.

These inspections are intended to achieve active managerial control in our restaurants in an effort to reduce risk factors and maintain a strong food safety culture.

Restaurant management incentive plans provide strong motivation to meet and exceed standards.

In addition, as part of our overall food quality assurance, we have a process in place to review vendors’ food safety practices to ensure they meet or exceed industry standards.

Restaurant Staff

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(“First Watch Academy of Restaurant Management”), to which we invite managers-in-training for a week-long immersive brand experience where we teach everything from our history and cultural pillars to leadership and management tools.

We have enhanced this training program to also focus on building a more diverse and inclusive team.

In addition, managers-in-training also complete a comprehensive 10-week C.A.F.E.

In addition, newly hired managers-in-training also complete a comprehensive 10-week C.A.F.E.

(“Culture and Food Experience”) training program in the restaurants, alongside experienced managers.

Training for all in-restaurant management positions was also enhanced to clearly define and delineate roles in order to drive both results and engagement.

Training for all in-restaurant management positions, as well as multi-unit leadership, was also enhanced to clearly define and delineate roles in order to drive both results and engagement.

New hourly employees participate in at least three days of initial onboarding training and shadowing.

Our general managers and directors of operations conduct in-restaurant training for our staff who also train online through our Virtual Learning Academy.

In 2025, we also introduced our new training platform, consisting of short employee tutorials in a fun, video-based format to enhance front-of-house and back-of-house knowledge on topics such as our menu, food preparation, teamwork, food safety, Company values and inventory, among other topics.

Purchasing and Distribution

Our Supply Chain department manages and negotiates directly with qualified, national suppliers and distributors with the dual goals of securing the supply of high quality, fresh products and controlling cost.

Our selected vendors undergo inspections to ensure that products purchased conform to our standards.

Our Quality Assurance department requires third-party supplier audits or Global Food Safety Initiative certification for all food distributors and manufacturing facilities to ensure good manufacturing practices, food safety, pest control, sanitation, training, regulatory compliance and food defense systems are in place.

To ensure freshness, most of our restaurants accept produce and broadline distribution deliveries at least three times per week.

Our selected vendors undergo assessments from our Quality Assurance department to ensure that products purchased conform to our specifications and quality standards.

Additionally, our Quality Assurance department conducts on-site visits and requires third-party supplier audits or Global Food Safety Initiative certification for all food distributors and manufacturing facilities to help ensure good manufacturing practices, food safety, pest control, sanitation, training, regulatory compliance and food defense systems are in place.

To help ensure freshness, most of our restaurants accept produce and broadline distribution deliveries at least three times per week.

Quality and Food Safety

Food preparation and cleaning procedures are defined, monitored and maintained by our Quality Assurance department.

These inspections are intended to achieve active managerial control in our restaurants in an effort to reduce risk factors and maintain a strong food safety culture.

Restaurant management incentive plans provide strong motivation to meet and exceed standards.

In addition, as part of our overall food quality assurance, we send product samples to accredited third-party laboratories to verify key quality attributes.

We also maintain a formal process for reviewing vendors’ food safety practices to ensure they meet or exceed industry standards, as described above.

Management Information Systems

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We use a variety of marketing channels, including affiliate partnerships, social media interactions, digital marketing, direct mailers, public relations initiatives and local community sponsorships, email communications, promotions and partnerships.

We focus on increasing our engagement with social media platforms in order to generate brand awareness and also to gather information we can then apply to future marketing efforts.

We continue to focus on increasing our engagement with social media platforms in order to generate brand awareness and also to gather information we can then apply to future marketing efforts.

Franchise Program

As of December 29, 2024, we ha d 11 franchisees that operat ed 83 rest aurants and our existing franchisees had 29 total new restaurant development obligations.

As of December 28, 2025, we ha d 9 franchisees that operated 73 rest aurants and our existing franchisees had 17 total new restaurant development obligations.

Typically, our franchise agreements provide an initial term of 10 years with additional renewal terms that total 10 years subject to various conditions that include upgrades to the restaurant facility and brand image.

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The initial franchise fee for each restaurant is $35,000 to $40,000.

Franchisees are required to pay 4.0% of franchised restaurant sales in royalties and contribute 1.0%-3.0% of franchised restaurant sales to a system fund, which is used for advertising, marketing and public relations programs and materials on a system-wide basis.

Franchisees are required to pay 4.0% of franchised restaurant sales in royalties and contribute 1.0% to 3.0% of franchised restaurant sales to a system fund, which is used for advertising, marketing and public relations programs and materials on a system-wide basis.

Human Capital

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We believe that putting our employees first, in turn, leads them to put customers first and we are confident that our people-centric culture plays a significant role in retaining our employees.

This culture was also a key factor in the Company’s achievement of being recognized as 2024’s #1 Most Loved Workplace in the United States by Newsweek and the Best Practice Institute.

This is the third consecutive year in which the Company has been included in Newsweek’s Top 100 Most Loved Workplaces®, a designation that was a result of an assessment of First Watch’s people practices along with an independent survey of approximately 1,000 of our employees.

This culture was also a key factor in the Company’s achievement of being named a Top 100 Most Loved Workplace® for four consecutive years by the Best Practice Institute, and in 2025, being named the #1 Most Love Workplace for the second year in a row, as featured in The Wall Street Journal.

This designation was based on an assessment of First Watch’s people practices along with an independent survey of approximately 1,000 of our employees.

Listening to Our Employees

We believe in fostering an environment where all employees feel valued and heard, and we furnish employees with various communication channels to provide regular feedback, including surveys, meetings, and, most importantly, direct communication with Company leadership.

In 2024, CEO and President, Chris Tomasso, Chief People Officer, Laura Sorensen and Chief Operations Officer, Dan Jones, hosted twenty-four separate 90 minute calls with hourly employees across the country for their fourth annual W.H.Y.

In 2025, CEO and President, Chris Tomasso, Chief People Officer, Laura Sorensen and Chief Operations Officer, Dan Jones, hosted twenty-three separate 90-minute calls with hourly employees across the country for their fifth annual W.H.Y.

Tour – their “We Hear You” listening tour.

The purpose of these in-depth sessions is to learn more about the issues most meaningful to our hourly workforce.

As a result of these tours, the Company has been able to take swift action on the issues that surfaced, resulting in positive changes for both employees and customers.

New menu changes, employee benefits, training, operational practices and more efficient tools have been introduced as a direct result of feedback from each annual tour, reinforcing the Company’s culture of listening to its employees and taking action on the issues that matter the most to them.

As a result of these tours, we have been able to take swift action on the issues that surfaced, resulting in positive changes for both employees and customers.

New menu changes, employee benefits, training, operational practices, and system enhancements to improve service and operations, have been introduced as a direct result of feedback from each annual tour, reinforcing our culture of listening to our employees and taking action on the issues that matter the most to them.

Taking Care of Our Employees

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We operate on a “No Nights Ever” model and work to get our restaurant employees “out the door by four”– which allows our teams to enjoy evenings with their family and friends, and an improved quality of life.

This one-shift model provides our employees with a work-life balance that is simply out of reach for most restaurant industry employees.

In addition to this flexibility, we support our employees with healthcare benefits, a 401(k) plan, tuition reimbursement, family leave and other assistance, including but not limited to:

• Backup childcare and eldercare available for all employees, at all levels

• Our “You First” Emergency Assistance Fund

• A text-based telemedicine platform with no out-of-pocket expenses, for all employees regardless of insurance plan

This one-shift model provides our employees with a work-life balance that does not exist for many employees in the restaurant industry.

In addition to this flexibility, we

support our employees with healthcare benefits, a 401(k) plan, tuition reimbursement, family leave and other assistance, including but not limited to:

• Discounted and Company-subsidized backup childcare and eldercare available for all employees, at all levels

• “You First” Emergency Assistance Fund

• Free telemedicine for all employees regardless of insurance plan enrollment

• Complimentary access to the Calm App (for meditation, relaxation and sleep) for all employees and five of their loved ones

• 24/7 access to confidential counseling and concierge services through the Company’s Employee Assistance Program for all employees and their family members, as well as free personal and professional coaching

• No-cost high school diploma program

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• Pet insurance

In 2020, we created the “You First” Emergency Assistance Fund, which provides financial support to employees and their immediate families during times of significant hardship following the impacts of qualifying disasters.

A portion of each kid’s meal sold by our restaurants benefits this program.

Since its inception, this fund has provided employees with over with over $1 million dollars in tax-free hardship grants.

Most recently the fund was leveraged to assist hundreds of our Southeast-based employees after the hurricanes of 2024 caused flooding and wind damage in Florida, Georgia, North and South Carolina.

Including Our Employees

At First Watch, we are committed to making days brighter by creating a culture where our teams and our customers feel valued and celebrated for who they are and the differences they bring to the table.

With our mission of “Making days brighter at Every opportunity”, we endeavor to provide all employees with the opportunity to contribute at the highest level to ensure everyone can belong, thrive, and “Follow the Sun” to reach their full potential.

We believe the composition of our teams reflect the diversity of our restaurant communities across the country, allowing us to better anticipate market trends and address the needs of our customers.

And while our work is ongoing, we’re dedicated to building on our “You First” commitment and unlocking possibilities for each team member and the communities we serve.

First Watch works with an outside consultant to complete an annual assessment to both build and benchmark our policies, practices and representation.

In 2020, we developed and launched an annual campaign, branded #beabetterhuman, which has taken our people-focused approach to a new level.

The #beabetterhuman initiative is comprised of monthly live, interactive in-person and online workshops fostering personal and professional development.

The #beabetterhuman campaign was designed to educate and develop our workforce, raise awareness and influence change.

We continue to build upon the success of the program with training for new managers and an ongoing #beabetterhuman series on Facebook, Instagram and Glassdoor highlighting employees within the restaurants and their unique and inspiring stories.

Our #beabetterhuman campaign also inspired the opportunity for employees to give back to the community through our executive-sponsored and employee-led Kale Krew, which coordinates multiple volunteer opportunities annually.

With our mission of “Making days brighter at every opportunity”, we endeavor to provide all employees with the opportunity to contribute at the highest level to ensure everyone can belong, thrive, and “Follow the Sun” to reach their fullest potential.

We believe the composition of our teams reflects the diversity of our restaurant communities across the country, allowing us to better anticipate market trends and address the needs of our customers.

And while our work is ongoing, we are dedicated to continuing to build upon our “You First” commitment and unlock possibilities for each team member and the communities we serve.

We work with an outside consultant to complete an annual assessment of our culture and talent to better understand our current landscape, benchmark progress, and drive performance.

For five consecutive years, we have leveraged our #beabetterhuman initiative to take our people-focused approach to a new level.

The #beabetterhuman initiative is comprised of monthly interactive in-person and online training workshops fostering personal and professional development.

The #beabetterhuman campaign was designed to educate and develop our workforce, raise awareness of key issues impacting our employees, and influence positive change.

We continue to build upon the success of the program with expanded development offerings to both our Home Office employees and restaurant management teams.

Our #beabetterhuman campaign also inspired the opportunity for Home Office employees to give back to the community through our executive-sponsored and employee-led Kale Krew, which coordinates multiple volunteer opportunities annually.

Developing Our Employees

Professional development and growth are a way of life at First Watch.

Since 2022, more than 85% of the 510 employees promoted to general manager at our corporate-owned restaurants were promoted from within.

The average tenures for our directors of operations, regional vice presidents and field operations vice presidents are 8 years, 13 years and 19 years, respectively.

First Watch takes a 360-degree personal/professional approach to career advancement and development.

A majority of our general managers at corporate-owned restaurants are promoted from within.

The average tenures for our directors of operations, regional vice presidents and field operations vice presidents are approximately 8 years, 12 years and 13 years, respectively.

First Watch takes a holistic approach to career advancement and development, with a focus on building skills, leadership capabilities, and long-term growth opportunities across all levels of the organization.

We are constantly iterating and promoting career advancement opportunities for our people.

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• Regional “Come Grow With Us” events provide hourly employees who are interested in leadership the chance to learn about growth and development and get on the fast track to management.

• Established in 2018, our First Watch Academy of Restaurant Management immerses new restaurant managers in our You First culture and leverages Company subject matter experts to educate these leaders on a variety of essential topics, including leadership behaviors.

To date, nearly 1,000 high-potential leaders have attended the week-long sessions that take place throughout the year.

We prioritize personal and professional growth because it’s simply the right thing to do and it’s part of our culture.

However, it also makes our aggressive growth plans possible.

With over 100 new restaurants in our real estate development pipeline, we need a robust GM-ready talent bench.

Our ongoing career growth opportunities, along with our culture and hours, are a key component to our employee value proposition, which fuels our ability to both attract and retain great talent.

• Established in 2018, our First Watch Academy of Restaurant Management (F.A.R.M) immerses new restaurant managers in our You First culture and leverages Company subject matter experts to educate these leaders on a variety of essential topics, including leadership behaviors.

While we prioritize personal and professional growth because we believe it is simply the right thing to do and it is part of our culture, it also makes our aggressive growth plans possible.

With over 100 new restaurants in our real estate

development pipeline, we need a robust GM-ready talent bench.

Our ongoing career growth opportunities, along with our culture and hours, are key components to our employee value proposition, which fuels our ability to both attract and retain great talent.

Retaining Our Employees

All of these aspects, and many more, contribute to our award-winning culture and employee retention.

Our turnover sits well below the industry average and has improved sequentially over the last two years for both managers and hourly team members, enabling us to provide consistent and memorable dining experiences for our customers.

Our focus on employee engagement and support contributes to our award-winning culture and employee retention.

Our turnover measures well below the industry average and has improved sequentially over the last two years for both managers and hourly team members, enabling us to better provide consistent and memorable dining experiences for our customers.

Experienced, Passionate Leadership Team and Deep Bench of Talent

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We are subject to extensive federal, state and local government laws and regulations, including those relating to, among others, public health and safety, zoning and fire codes, alcoholic beverage control and franchising.

In addition, we are also subject to the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986, the Americans with Disabilities Act and various federal and state laws governing such matters as minimum wages, exempt versus non-exempt, overtime, unemployment tax rates, workers’ compensation rates, citizenship requirements and other working conditions.

In addition, we are also subject to the Fair Labor Standards Act, the Immigration Reform and Control Act of 1986, the Americans with Disabilities Act and various federal and state laws governing such matters as minimum wages, exempt versus non-exempt status, overtime, unemployment tax rates, workers’ compensation rates, citizenship requirements and other working conditions.

New laws, regulations or interpretations could impact our business or our cost of compliance.

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We have registered “First Watch the Daytime Cafe,” “You First,” “Yeah, It’s Fresh!” and certain other names used by our restaurants as trademarks or service marks with the United States Patent and Trademark Office (“USPTO”).

In addition, the First Watch logo, website name and address and Facebook and Twitter accounts are our intellectual property.

Our policy is to pursue and maintain registration of service marks and trademarks and to oppose vigorously any infringement or dilution of the service marks or trademarks.

In addition, the First Watch logo, website name and address and social media accounts are our intellectual property.

Our policy is to pursue and maintain registration of our service marks and trademarks and to oppose vigorously any infringement or dilution of our service marks or trademarks.

We maintain certain recipes for our menu items, as well as certain standards, specifications and operating procedures, as trade secrets or confidential information.

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As consumers increasingly seek higher quality breakfast, brunch and lunch experiences, we believe we are well-positioned to compete with a wide range of national, regional and local establishments that operate during our hours of operation.

More directly, we do not believe there is a comparable offering within our segment that operates at the scale of First Watch and we view our primary competition as a network of independent restaurants that also serve breakfast and lunch in neighborhoods across the United States.

Our quarterly results of operations are subject to seasonal fluctuations.

Additionally, the timing of holidays, weather conditions and the number of new restaurant openings may affect sales volumes seasonally.

See Item 1A.“ Risk Factors ” for discussion of risks related to seasonal and periodic fluctuations.

More directly, we do not believe there is a comparable offering within our segment that operates at the scale of First Watch.

We view our primary competition as a network of independent restaurants that also serve breakfast and lunch in neighborhoods across the United States.

Our quarterly results of operations are subject to fluctuations due to the timing of holidays, weather conditions and the number of new restaurant openings.

See Item 1A.“ Risk Factors ” for a discussion of risks related to periodic fluctuations.

Corporate Information

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Our consumer website is located at www.firstwatch.com, and our investor relations website is located at https://investors.firstwatch.com.

We make available, free of charge, through our internet website, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after electronically filing such material with the Securities and Exchange Commission (“SEC”).

We make available, free of charge, through our internet website, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as soon as reasonably practicable after electronically filing such material with the SEC.

Our reports and other materials filed with the SEC are also available at www.sec.gov.

The reference to these website addresses does not constitute incorporation by reference of the information contained on the websites and should not be considered part of this Annual Report on Form 10-K.

The references to these website addresses are included as textual references only, and the information contained on or accessible through these websites is not incorporated by reference into, and should not be considered part of, this Annual Report on Form 10-K or any of our other SEC filings.

We announce material information to the public about us, our products and services, and other matters through a variety of means, including filings with the SEC, press releases, public conference calls, webcasts and our investor relations website (https://investors.firstwatch.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with our disclosure obligations under Regulation FD.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business