Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal First Quarter Ended April 18, 2021

Rhea-AI Summary

Red Robin Gourmet Burgers (NASDAQ: RRGB) announced its financial results for the quarter ending April 18, 2021. Total restaurant revenues reached $326.3 million, reflecting a 6.6% increase year-over-year. The company reported a Restaurant Level Operating Profit of 15.7%, an increase of 690 basis points from 2020. Off-premises sales surged 75.5% compared to the previous year, representing 41.7% of total food and beverage sales. Despite capacity challenges, 55% of restaurants achieved positive comparable revenue compared to 2019.

Positive

• Restaurant revenue increased to $326.3 million, up 6.6% year-over-year.
• Restaurant Level Operating Profit of 15.7%, a 690 basis point increase.
• Off-premises sales rose by 75.5%, making up 41.7% of total sales.

Negative

• First quarter 2021 comparable restaurant revenue decreased 12.8% compared to 2019.
• Staffing challenges and COVID restrictions hindered full capacity operations.

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter ended April 18, 2021.

Key Highlights

• As of the end of our fiscal fifth period, all Company-owned restaurants have re-opened indoor dining rooms with varying levels of capacity;
• Restaurant revenue of $318.7 million and Restaurant Level Operating Profit (a non-GAAP metric) of 15.7%, an increase of 690 basis points over the same period in 2020;
• First quarter 2021 comparable⁽¹⁾ restaurant revenue increased 10.0% over the same period in 2020, and decreased 12.8% compared to the same period in 2019;
• At the end of the first quarter 2021, 55% of Company-owned restaurants had positive comparable⁽¹⁾ restaurant revenue compared to 2019;
• First quarter 2021 off-premises sales increased 75.5% compared to the period ended April 19, 2020, and comprised 41.7%, 26.3%, and 11.6% of total food and beverage sales for the first fiscal quarter of 2021, 2020, and 2019; and,
• For the last four weeks of the fiscal first quarter of 2021, 85 comparable⁽¹⁾ Company-owned restaurants with no capacity or social distancing restrictions realized comparable restaurant revenue of 5.2% over the same period in 2019, while maintaining off-premises mix of 29.9%, more than double pre-pandemic levels. These restaurants also realized comparable⁽¹⁾ restaurant margin of 21.1%, an increase of 1.5% over the same period in 2019. While these restaurants are able to operate with no restrictions, several are still operating below 100% capacity due to limited operating hours due to staffing challenges and COVID exclusions.

Paul J. B. Murphy III, Red Robin’s President and Chief Executive Officer, said, "We are very excited to share the progress we have made towards recovery. Our initiatives to enhance the Red Robin Guest experience and enterprise business model since the onset of the pandemic, coupled with decreasing COVID cases and pent-up demand, have resulted in a meaningful improvement in our liquidity and enterprise margins. We are encouraged that by the end of our first fiscal quarter, more than half of our Company-owned restaurants had positive comparable restaurant revenue compared to 2019, despite pronounced capacity restrictions in our largest markets. For the first time since the beginning of the pandemic, all of our Company-owned restaurants are open for indoor dining at varying levels of capacity. As we welcome back our Guests, we are sustaining off-premises sales that are more than double pre-pandemic levels, even in comparable Company-owned restaurants we are able to operate at full indoor capacity."

Murphy continued, "We believe the foundation that we have put in place will drive Guest activation, deliver a great brand experience, continue to generate incremental off-premises sales, and leverage our strengthened business model, together creating long-term value for our shareholders."

First Quarter 2021 Financial Summary Compared to First Quarter 2020 and 2019

The following table presents financial highlights for the fiscal first quarter of 2021, compared to results from the same period in 2020 and 2019:

		Sixteen weeks ended											Sixteen weeks ended
		April 18, 2021				April 19, 2020				Change			April 21, 2019(1)				Change
Total revenues (millions)		$	326.3			$	306.1			6.6	%		$	409.9			(20.4)

FAQ

What were Red Robin's financial results for Q1 2021?

Red Robin reported total revenues of $326.3 million for Q1 2021, a 6.6% increase compared to Q1 2020.

How did comparable restaurant revenue perform in Q1 2021?

Comparable restaurant revenue increased by 10.0% over Q1 2020 but decreased by 12.8% compared to Q1 2019.

What percentage of Red Robin's restaurants had positive revenue comparisons to 2019?

At the end of Q1 2021, 55% of company-owned restaurants had positive comparable revenue compared to 2019.

How much did off-premises sales grow in Q1 2021 for Red Robin?

Off-premises sales increased by 75.5% compared to the same period in 2020, making up 41.7% of total food and beverage sales.