v3.26.1
Business Acquisitions
 6 Months Ended
Jun. 28, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Acquisitions Business Acquisitions
During the second quarter of 2025, the Company acquired, in two separate transactions, substantially all the assets associated with 19 franchise-operated First Watch restaurants. For both transactions, the purchase price was allocated to the fair value of the assets acquired and the liabilities assumed. The Company has finalized the purchase price allocations for the acquisitions and there were no adjustments made to the initial preliminary valuations.
DATE OF ACQUISITION
(in thousands, except number of acquired restaurants)APRIL 14, 2025APRIL 28, 2025
Number of acquired restaurants316
Purchase price (cash)$6,985 $49,247 
Transaction costs incurred$416 $1,017 
Deferred franchise fees recognized as a result of termination of pre-existing franchise agreement$— $398 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$5 $24 
Inventory$31 $159 
Other assets$9 $124 
Property, fixtures and equipment$2,998 $19,800 
Reacquired rights$1,920 $13,060 
Goodwill$2,876 $18,767 
Operating right-of-use assets, net of lease positions and prepaid rent$2,922 $17,305 
Operating lease liabilities$(3,735)$(19,896)
Accounts payable$(2)$— 
Deferred revenues - gift card liabilities assumed$(39)$(96)
Goodwill reflects the value of expected synergies and assembled workforce, and was assigned to the Company’s single reporting unit. The Company treated the transactions as asset acquisitions for income tax purposes, which allows for any goodwill recognized to be tax deductible and amortized over a 15-year statutory life.
The weighted average estimated useful life of the reacquired rights was 6.1 years on the acquisition dates.