First Watch to Acquire 16 Franchise Restaurants in North and South Carolina
11 Novembre 2024 - 1:00PM
First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (together with
its subsidiaries “First Watch” or the “Company”), the leading
Daytime Dining concept serving breakfast, brunch and lunch, today
announced it has agreed to acquire 15 of its franchise-owned
restaurants, one restaurant currently under construction and
corresponding development rights in North Carolina and South
Carolina for an aggregate purchase price of $49 million on a
cash-free, debt-free basis, subject to certain customary
adjustments. The restaurant currently under construction is
expected to open prior to the closing of the transaction.
“Strategic acquisitions of franchise-operated restaurants like
this one continues to be an important part of our long-term growth
and value creation strategy,” said Chris Tomasso, First Watch CEO
& President. “These 16 restaurants and the corresponding
development rights will help solidify corporate ownership of First
Watch restaurants along the East Coast – and provide us with
additional territories in which to grow organically for years to
come. We expect these restaurants will generate unit volumes and
restaurant level operating profit margins in line with our
Company-owned restaurants, and we look forward to welcoming the
teams from these restaurants into our organization.”
The acquisition is expected to close by mid-April 2025 pending
completion of certain customary closing conditions. The 16
restaurants included in this transaction represent a significant
incremental addition to the 45 total franchised restaurants
acquired across six accretive acquisitions since May 2023. Each of
these acquisitions was subject to a purchase option negotiated
prior to First Watch’s initial public offering.
The acquisition is expected to be funded through a combination
of cash on hand and available borrowings under the Company’s credit
facility.
Additional details on the acquisition agreement, including a
copy of the acquisition agreement, will be made available in
a Current Report on Form 8-K to be filed with the U.S.
Securities and Exchange Commission (“SEC”) and accessible on the
SEC’s website at www.sec.gov and the Investors Relations section of
the Company’s website at
https://investors.firstwatch.com/financial-information/sec-filings.
About First WatchFirst Watch is the leading
Daytime Dining concept serving made-to-order breakfast, brunch and
lunch using fresh ingredients. A recipient of hundreds of local
“Best Breakfast” and “Best Brunch” accolades, First Watch's
chef-driven menu rotates five times a year and includes elevated
executions of classic favorites alongside specialties such as its
Quinoa Power Bowl, Lemon Ricotta Pancakes, Chickichanga, Morning
Meditation fresh juice and signature Million Dollar Bacon. After
first appearing on the list in 2022 and 2023, First Watch was named
2024’s #1 Most Loved Workplace® in America by Newsweek and the Best
Practice Institute. In 2023, First Watch was named the top
restaurant brand in Yelp’s inaugural list of the top 50 most-loved
brands in the U.S. In 2022, First Watch was awarded a sought-after
MenuMasters honor by Nation's Restaurant News for its seasonal
Braised Short Rib Omelet. First Watch operates more than 540 First
Watch restaurants in 29 states. For more information, visit
www.firstwatch.com.
Forward-Looking StatementsThis release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which are subject to
known and unknown risks, uncertainties and other important factors
that may cause actual results to be materially different from the
statements made herein. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements discuss our current expectations and projections
relating to our franchise acquisitions, financial position, results
of operations, plans, objectives, future performance and business.
You can identify forward-looking statements by the fact that they
do not relate strictly to any historical or current facts. These
statements may include words such as “aim,” “anticipate,”
“believe,” “estimate,” “expect,” “forecast,” “future,” “intend,”
“outlook,” “potential,” “project,” “projection,” “plan,” “seek,”
“may,” “could,” “would,” “will,” “should,” “can,” “can have,”
“likely,” the negatives thereof and other similar expressions. You
should evaluate all forward-looking statements made in this press
release in the context of the risks and uncertainties disclosed
herein, in our Annual Report on Form 10-K as of and for the year
ended December 31, 2023, including under Part I. Item 1A.
“Risk Factors” and Part II. Item 7. “Management’s Discussion and
Analysis of Financial Condition and Results of Operations,” and our
other filings with the Securities and Exchange Commission (the
“SEC”), accessible on the SEC’s website at www.sec.gov and the
Investors Relations section of the Company’s website at
https://investors.firstwatch.com/financial-information/sec-filings.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include the
following: uncertainty regarding the Russia and Ukraine war,
Israel-Hamas war and the related impact on macroeconomic
conditions, including inflation, as a result of such conflicts or
other related events; our vulnerability to changes in economic
conditions and consumer preferences; our inability to successfully
open new restaurants or establish new markets; our inability to
effectively manage our growth; potential negative impacts on sales
at our and our franchisees’ restaurants as a result of our opening
new restaurants; a decline in visitors to any of the retail
centers, lifestyle centers, or entertainment centers where our
restaurants are located; lower than expected same-restaurant sales
growth; unsuccessful marketing programs and limited time new
offerings; changes in the cost of food; unprofitability or closure
of new restaurants or lower than previously experienced performance
in existing restaurants; our inability to compete effectively for
customers; unsuccessful financial performance of our franchisees;
our limited control over our franchisees’ operations; our inability
to maintain good relationships with our franchisees; conflicts of
interest with our franchisees; the geographic concentration of our
system-wide restaurant base in the southeast portion of the United
States; damage to our reputation and negative publicity; our
inability or failure to recognize, respond to and effectively
manage the accelerated impact of social media; our limited number
of suppliers and distributors for several of our frequently used
ingredients and shortages or disruptions in the supply or delivery
of such ingredients; information technology system failures or
breaches of our network security; our failure to comply with
federal and state laws and regulations relating to privacy, data
protection, advertising and consumer protection, or the expansion
of current or the enactment of new laws or regulations relating to
privacy, data protection, advertising and consumer protection; our
potential liability with our gift cards under the property laws of
some states; our failure to enforce and maintain our trademarks and
protect our other intellectual property; litigation with respect to
intellectual property assets; our dependence on our executive
officers and certain other key employees; our inability to
identify, hire, train and retain qualified individuals for our
workforce; our failure to obtain or to properly verify the
employment eligibility of our employees; our failure to maintain
our corporate culture as we grow; unionization activities among our
employees; employment and labor law proceedings; labor shortages or
increased labor costs or health care costs; risks associated with
leasing property subject to long-term and non-cancelable leases;
risks related to our sale of alcoholic beverages; costly and
complex compliance with federal, state and local laws; changes in
accounting principles applicable to us; our vulnerability to
natural disasters, unusual weather conditions, pandemic outbreaks,
political events, war and terrorism; our inability to secure
additional capital to support business growth; our level of
indebtedness; failure to comply with covenants under our credit
facility; and the interests of our largest stockholder may differ
from those of public stockholders.
The forward-looking statements included in this press release
are made only as of the date hereof and are expressly qualified in
their entirety by these cautionary statements. We undertake no
obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or
otherwise, except as otherwise required by law. All information
presented herein is based on our fiscal calendar. Unless otherwise
stated, references to particular years, quarters, months or periods
refer to our fiscal years and the associated quarters, months and
periods of those fiscal years.
Investor Relations Contact:Steven
L. Marotta941-500-1918investors@firstwatch.com
Media Relations Contact:Jenni
Glester407-864-5823jglester@firstwatch.com
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