Red Robin Gourmet Burgers, Inc. Releases “North Star” Five-Point Plan to Drive Long-Term Shareholder Value
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) revealed preliminary revenue results for Q4 ended December 25, 2022, reporting approximately
- Q4 total revenue increased 2.4% year-over-year to approximately $290.2 million.
- Positive comparable restaurant revenue growth for 8 consecutive quarters.
- Strengthened Red Robin Royalty® program with approximately 11.3 million members.
- Potential Sale-Leaseback transaction aimed at debt reduction and capital investment.
- Ongoing challenges from COVID-19 and previous execution issues.
- Comparable restaurant revenue growth benefit inflated by $2.8 million from Red Robin Royalty® program assessment.
Reports Preliminary Revenue Results for the Fourth Quarter Ended
Announces Evaluation of Sale-Leaseback Transaction
Hosting Fireside Chat at the 25th Annual
The “North Star” Five-Point Plan Consists of the Following:
Transform to an operations focused restaurant company:
- Empower decision making by Operators at the unit level
- Incent and reward Operators to drive business growth and results
- Restructured support organization
Elevate the guest experience:
- Invest in People, food quality, and the restaurant facility
- New cooking platform to fully deliver on our commitment of Gourmet Burgers
- Menu refresh adding variety of both offerings and price points
Remove costs and complexity:
- Optimize the supply chain to reduce costs and ensure consistent delivery of high-quality product
- Evaluate vendors for need, performance, and competitive costs
- Implement ongoing process to reduce costs through actions that uphold our commitment to a great guest experience
Optimize guest engagement:
- Engage with and support the local communities in which we operate
- Enhance the off-premise experience
- Further build and engage with guests through Red Robin Royalty® loyalty program
Drive growth in comparable restaurant revenue & unit level profitability, and deliver financial commitments:
- Regain credibility with the investment community
- Drive performance in the existing base of restaurants, earning the right to resume new unit growth
- Deliver financial guidance commitments
Hart continued, “The North Star initiatives will guide our efforts over the next 3 years, and we believe present an opportunity to more than double Adjusted EBITDA margin. In conjunction with our announcement to evaluate a Sale-Leaseback transaction, we are committed to building a successful and sustainable business, and creating value for shareholders.”
Preliminary Revenue Results for the Fourth Quarter, as Compared to the Prior Year as Applicable, Included the Following:
-
Total revenue of approximately
increased$290.2 million 2.4% compared to the fourth quarter of 2021- Red Robin Royalty® membership is approximately 11.3 million members, an increase of approximately 0.3 million
-
Comparable restaurant revenue(1) increased
2.5% compared to the fourth quarter of 2021- This is the 8th consecutive quarter of positive comparable restaurant revenue(1) growth.
-
Comparable restaurant revenue(1) in the fourth quarter of 2022 includes a benefit of approximately
due to the Company's assessment of breakage related to its Red Robin Royalty® program. Excluding this benefit, comparable restaurant revenue(1) would have increased$2.8 million 1.5% compared to the fourth quarter of 2021. -
Comparable restaurant revenue(1) at restaurants with Donatos® outperformed restaurants without Donatos® by
6.2% in the fourth quarter of 2022 as compared to 2019. 247 restaurants offer Donatos® as of the end of fiscal 2022.
The above results are preliminary and subject to year-end closing adjustments.
Hart concluded, “The continued growth in comparable restaurant revenue demonstrates our brand strength and provides a strong foundation to support revenue and Adjusted EBITDA growth in 2023.”
Evaluation of Sale-Leaseback Transaction
About
Forward-Looking Statements
Forward-looking statements regarding the Company's future performance; “North Star” strategic plan; preliminary results including revenue; Adjusted EBITDA projections; potential Sale-Leaseback transactions, timing and anticipated uses of proceeds including potential share repurchase; capital expenditures including investment in our restaurants and systems, new restaurant growth; pricing expectations; our ability to mitigate cost inflation; and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as "expect," "believe," "anticipate," "intend," "plan," "project," "could," "should," "will," "outlook" or "estimate," or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the effectiveness of the Company's strategic initiatives, including labor and service models, and operational improvement initiatives and our ability to execute on such strategic initiatives; our ability to recruit, staff, train, and retain our workforce; the impact of COVID-19 and new variants on our results of operations, staffing levels, supply chain, and liquidity; the effectiveness and timing of the Company's marketing strategies and promotions; menu changes and pricing strategy; the implementation, rollout, and timing of technology solutions; our ability to achieve revenue and cost savings; competition in the casual dining market and discounting by competitors; changes in consumer spending trends and habits; changes in the availability and cost of food products, labor, and energy; general economic and operating conditions, including changes in consumer disposable income, weather conditions, and other events affecting the regions where our restaurants are operated; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; changes in federal, state, or local laws and regulations affecting the operation of our restaurants, including minimum wage and tip credit regulations, consumer and occupational health and safety regulations, health insurance coverage and other benefits, nutritional disclosures, and employment eligibility-related documentation requirements; costs and other effects of legal claims by Team Members, franchisees, customers, vendors, stockholders, and others, including negative publicity regarding food safety or cyber security; and other risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the
(1) |
Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated five full quarters as of the end of the period presented. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230109005309/en/
For media relations questions:
jkaufman@redrobin.com
(410) 458-2308
For investor relations questions:
investor@redrobin.com
(203) 682-8253
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