Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Fourth Quarter and Fiscal Year Ended December 29, 2024
Red Robin Gourmet Burgers (NASDAQ: RRGB) reported mixed results for Q4 and fiscal year 2024. Q4 showed a 3.4% increase in comparable restaurant revenue, while total revenues decreased to $285.2 million due to one less operating week. The company posted a net loss of $39.7 million in Q4, compared to $13.7 million loss in 2023, including $32.4 million in impairment costs.
For fiscal 2024, total revenues declined to $1.25 billion, with a 1.2% decrease in comparable restaurant revenue. The annual net loss widened to $77.5 million from $21.2 million in 2023. The company is evaluating alternatives for approximately 70 underperforming locations and plans to sell three owned properties for $5.8 million in Q1 2025.
Looking ahead, Red Robin's 2025 guidance projects revenue between $1.225-1.250 billion and Adjusted EBITDA of $60-65 million.
Red Robin Gourmet Burgers (NASDAQ: RRGB) ha riportato risultati contrastanti per il quarto trimestre e l'anno fiscale 2024. Il quarto trimestre ha mostrato un aumento del 3,4% nel fatturato dei ristoranti comparabili, mentre i ricavi totali sono diminuiti a 285,2 milioni di dollari a causa di una settimana operativa in meno. L'azienda ha registrato una perdita netta di 39,7 milioni di dollari nel quarto trimestre, rispetto a una perdita di 13,7 milioni di dollari nel 2023, inclusi 32,4 milioni di dollari in costi di svalutazione.
Per l'anno fiscale 2024, i ricavi totali sono diminuiti a 1,25 miliardi di dollari, con un calo dell'1,2% nel fatturato dei ristoranti comparabili. La perdita netta annuale è aumentata a 77,5 milioni di dollari rispetto ai 21,2 milioni di dollari del 2023. L'azienda sta valutando alternative per circa 70 sedi poco performanti e prevede di vendere tre proprietà di proprietà per 5,8 milioni di dollari nel primo trimestre del 2025.
Guardando al futuro, le previsioni di Red Robin per il 2025 stimano ricavi tra 1,225 e 1,250 miliardi di dollari e un EBITDA rettificato di 60-65 milioni di dollari.
Red Robin Gourmet Burgers (NASDAQ: RRGB) reportó resultados mixtos para el cuarto trimestre y el año fiscal 2024. El cuarto trimestre mostró un aumento del 3.4% en los ingresos de restaurantes comparables, mientras que los ingresos totales disminuyeron a 285.2 millones de dólares debido a una semana operativa menos. La compañía reportó una pérdida neta de 39.7 millones de dólares en el cuarto trimestre, en comparación con una pérdida de 13.7 millones de dólares en 2023, incluyendo 32.4 millones de dólares en costos de deterioro.
Para el año fiscal 2024, los ingresos totales cayeron a 1.25 mil millones de dólares, con una disminución del 1.2% en los ingresos de restaurantes comparables. La pérdida neta anual se amplió a 77.5 millones de dólares desde 21.2 millones de dólares en 2023. La compañía está evaluando alternativas para aproximadamente 70 ubicaciones de bajo rendimiento y planea vender tres propiedades propias por 5.8 millones de dólares en el primer trimestre de 2025.
Mirando hacia adelante, la guía de Red Robin para 2025 proyecta ingresos entre 1.225 y 1.250 mil millones de dólares y un EBITDA ajustado de 60 a 65 millones de dólares.
레드 로빈 고메 버거스 (NASDAQ: RRGB)는 2024년 4분기 및 회계 연도에 대해 엇갈린 결과를 보고했습니다. 4분기에는 비교 가능한 식당 수익이 3.4% 증가했지만, 운영 주가 한 주 줄어들면서 총 수익은 2억 8,520만 달러로 감소했습니다. 회사는 4분기에 3,970만 달러의 순손실을 기록했으며, 이는 2023년의 1,370만 달러 손실에 비해 증가한 수치로, 3,240만 달러의 자산 손상 비용이 포함되어 있습니다.
2024 회계 연도에는 총 수익이 12억 5천만 달러로 감소했으며, 비교 가능한 식당 수익이 1.2% 감소했습니다. 연간 순손실은 2,120만 달러에서 7,750만 달러로 확대되었습니다. 회사는 약 70개 저조한 매장에 대한 대안을 평가하고 있으며, 2025년 1분기에 580만 달러에 3개의 소유 부동산을 판매할 계획입니다.
앞을 내다보면, 레드 로빈의 2025년 가이드는 수익이 12억 2,500만에서 12억 5,000만 달러 사이가 될 것으로 예상하며, 조정된 EBITDA는 6천만에서 6,500만 달러로 예상됩니다.
Red Robin Gourmet Burgers (NASDAQ: RRGB) a annoncé des résultats mitigés pour le quatrième trimestre et l'année fiscale 2024. Le quatrième trimestre a montré une augmentation de 3,4 % des revenus des restaurants comparables, tandis que les revenus totaux ont diminué à 285,2 millions de dollars en raison d'une semaine d'exploitation de moins. L'entreprise a enregistré une perte nette de 39,7 millions de dollars au quatrième trimestre, contre une perte de 13,7 millions de dollars en 2023, y compris 32,4 millions de dollars de coûts de dépréciation.
Pour l'année fiscale 2024, les revenus totaux ont chuté à 1,25 milliard de dollars, avec une diminution de 1,2 % des revenus des restaurants comparables. La perte nette annuelle s'est élargie à 77,5 millions de dollars contre 21,2 millions de dollars en 2023. L'entreprise évalue des alternatives pour environ 70 emplacements sous-performants et prévoit de vendre trois propriétés détenues pour 5,8 millions de dollars au premier trimestre 2025.
En regardant vers l'avenir, les prévisions de Red Robin pour 2025 projettent des revenus entre 1,225 et 1,250 milliard de dollars et un EBITDA ajusté de 60 à 65 millions de dollars.
Red Robin Gourmet Burgers (NASDAQ: RRGB) hat gemischte Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 gemeldet. Im vierten Quartal gab es einen Rückgang der vergleichbaren Restaurantumsätze um 3,4%, während die Gesamterlöse aufgrund einer weniger operativen Woche auf 285,2 Millionen Dollar sanken. Das Unternehmen verzeichnete einen Nettoverlust von 39,7 Millionen Dollar im vierten Quartal, verglichen mit einem Verlust von 13,7 Millionen Dollar im Jahr 2023, einschließlich 32,4 Millionen Dollar an Wertminderungen.
Für das Geschäftsjahr 2024 gingen die Gesamterlöse auf 1,25 Milliarden Dollar zurück, mit einem Rückgang der vergleichbaren Restaurantumsätze um 1,2%. Der jährliche Nettoverlust weitete sich auf 77,5 Millionen Dollar aus, im Vergleich zu 21,2 Millionen Dollar im Jahr 2023. Das Unternehmen prüft Alternativen für etwa 70 schwach performende Standorte und plant, drei eigene Immobilien für 5,8 Millionen Dollar im ersten Quartal 2025 zu verkaufen.
Für die Zukunft prognostiziert Red Robin für 2025 Einnahmen zwischen 1,225 und 1,250 Milliarden Dollar sowie ein bereinigtes EBITDA von 60 bis 65 Millionen Dollar.
- Q4 comparable restaurant revenue up 3.4%
- Q4 Adjusted EBITDA increased 19.0% to $12.7M
- Positive momentum continuing into early 2025
- Expected proceeds of $5.8M from property sales
- Q4 net loss widened to $39.7M from $13.7M
- Annual net loss increased to $77.5M from $21.2M
- FY2024 comparable restaurant revenue declined 1.2%
- 70 underperforming locations under closure review
- Outstanding borrowings of $189.5M
Insights
Red Robin's Q4 2024 results reveal a company in the midst of a critical turnaround effort with modest signs of improvement against a backdrop of significant financial challenges. The 3.4% comparable restaurant revenue growth in Q4 represents the culmination of sequential quarterly improvements, with management citing a 600-basis point traffic recovery from Q1 to Q4. However, this must be viewed in context of the $39.7 million quarterly loss and $77.5 million annual loss – a staggering figure for a company with only an $81.7 million market capitalization.
The planned evaluation of approximately 70 underperforming restaurants (representing roughly 14% of their ~500 location footprint) signals a substantial restructuring rather than minor optimization. This strategic contraction acknowledges the reality that a significant portion of their restaurant base is no longer economically viable in the current operating environment.
The company's debt position remains concerning, with $189.5 million in outstanding borrowings against just $50.7 million in available liquidity. The planned sale of three properties for $5.8 million will provide minimal relief to this debt burden. If operational losses continue, their financial flexibility could become severely constrained.
Red Robin's 2025 guidance projecting Adjusted EBITDA of $60-65 million (excluding stock compensation) represents a substantial improvement from 2024's $38.8 million figure. However, this projection assumes the successful execution of their "North Star" plan focused on traffic recovery and operational efficiency – a challenging proposition in the highly competitive casual dining sector where consumers have become increasingly price-sensitive and value-oriented.
The fundamental question for Red Robin is whether their core brand proposition remains relevant in today's dining landscape. Their strategy to focus on "moments of connection over craveable food" must overcome significant headwinds including changing consumer preferences, rising labor costs, and fierce competition from both fast-casual concepts and other full-service restaurants with more distinctive positioning.
Delivers fourth quarter comparable restaurant revenue increase of
Issues 2025 financial guidance
Highlights for the Fiscal Fourth Quarter of 2024 Compared to the Fiscal Fourth Quarter of 2023:
- Total revenues are
$285.2 million $23.8 million - Comparable restaurant revenue(1) increased
3.4% excluding the impact of a change in deferred loyalty revenue. Including this impact, Comparable restaurant revenue increased1.8% . - Net loss is
$39.7 million $13.7 million $32.4 million - Adjusted EBITDA(2) is
$12.7 million 19.0% increase.
Highlights for Fiscal 2024 Compared to Fiscal 2023:
- Total revenues are
$1.25 billion $54.5 million - Comparable restaurant revenue(1) decreased
1.2% . - Net loss is
$77.5 million $21.2 million - Adjusted EBITDA(2) is
$38.8 million 43.7% decrease.
(1) | Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated for at least 18 months as of the beginning of the period presented. |
(2) | See "Reconciliation of Non-GAAP Results to GAAP Results" for more details. |
G.J. Hart, Red Robin's President and Chief Executive Officer said, "The last two years have been transformational years for Red Robin, and I'm proud to say we began to see the benefit of our work as we progressed through 2024, culminating in a 600-basis point improvement in traffic trends from the first quarter of the year to the fourth. We also gained traction in our cost-saving initiatives to translate our top-line momentum during the fourth quarter into a
Hart concluded, "Our commitment has always been to provide our guests with great hospitality, serving delicious food at a great price, and creating a fun, friendly atmosphere with every visit. We believe the North Star plan is helping us fulfill that promise. As we look to 2025 and beyond, our team will focus on two key priorities: bringing guests back into our restaurants for moments of connection over craveable food that only Red Robin can provide and an accelerated effort to gain efficiency in our operations and deliver growth in restaurant and corporate-level profitability while maintaining the improved guest experience that we have developed over the past two years. 2025 is off to a good start with the comparable restaurant revenue momentum we had exiting the fourth quarter, continuing through the first eight weeks of the first quarter. With the strategy we have in place, we believe we are well positioned to deliver significant value to our guests and shareholders alike."
Fourth Quarter and Full Year 2024 Financial Summary:
The following table presents financial results for the fiscal fourth quarter and full year of 2024, compared to results from the same periods in 2023 ($ in millions except per share data):
Twelve Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks Ended | Fifty-Three Weeks Ended | ||||||
December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | ||||||
Total revenues | $ 285.2 | $ 309.0 | $ 1,248.6 | $ 1,303.0 | |||||
Restaurant revenues | 280.6 | 301.0 | $ 1,224.3 | $ 1,274.3 | |||||
Net income (loss) | (39.7) | (13.7) | $ (77.5) | $ (21.2) | |||||
Income (loss) from operations | (33.5) | (8.0) | $ (53.1) | $ 4.5 | |||||
Income (loss) from operations as a percent of | (11.8) % | (2.6) % | (4.3) % | 0.3 % | |||||
Restaurant Level Operating Profit(1) | $ 32.2 | $ 36.8 | $ 132.6 | $ 164.0 | |||||
Restaurant Level Operating Profit Margin(1) | 11.5 % | 12.2 % | 10.8 % | 12.9 % | |||||
Adjusted EBITDA(1) | $ 12.7 | $ 10.6 | $ 38.8 | $ 68.9 | |||||
Net income (loss) per share - diluted | $ (2.48) | $ (0.87) | $ (4.93) | $ (1.34) | |||||
Adjusted income (loss) per share - diluted(1) | $ (0.94) | $ (0.66) | $ (3.34) | $ (1.44) |
(1) | See "Reconciliation of Non-GAAP Results to GAAP Results" for more details. |
Balance Sheet and Liquidity
As of December 29, 2024, the Company had outstanding borrowings under its credit facility of
Restaurant Closure Evaluation and Assets Held For Sale
During the fourth quarter of fiscal 2024, the Company closed one (1) restaurant location upon expiration of the lease and is evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term. The Company recognized asset impairments and net closure charges of
The Company anticipates it will complete a transaction to sell three (3) owned properties during the first quarter of fiscal 2025. The transaction is expected to generate gross proceeds of
Revision to Non-GAAP Financial Measure Calculation, Adjusted EBITDA
Beginning in the first quarter of fiscal 2025, the Company intends to revise its definition of Adjusted EBITDA and Adjusted Net income (loss) to exclude noncash stock-based compensation expense. The Company believes this change will provide investors with a better understanding of our financial performance from period to period. Previously reported results will be revised to reflect the new presentation. Reported quarterly results for fiscal 2024 have been reconciled to this new calculation methodology in the Reconciliation of Non-GAAP Results to GAAP Results section of this release.
Outlook for Fiscal 2025 and Guidance Policy
The Company provides guidance of select information related to the Company's financial and operating performance, and such measures may differ from year to year. The projections are as of this date and the Company assumes no obligation to update or supplement this information.
The Company's fiscal 2025 guidance metrics are as follows:
- Total revenue of
$1.22 5 billion$1.25 0 billion - Restaurant level operating profit of
12.0% to13.0% ; - Adjusted EBITDA (excluding stock-based compensation) of
$60 million $65 million - Capital expenditures of
$25 million $30 million
Providing Income (loss) from operations and Net income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its fourth quarter and full year 2024 results, and outlook for fiscal 2025 today at 4:30 p.m. ET. The conference call can be accessed live over the phone by dialing 201-689-8560 which will be answered by an operator or by clicking Call Me. The conference call should be accessed at least 10 minutes prior to its scheduled start.
A replay will be available from approximately two hours after the end of the call and can be accessed by dialing 412-317-6671; the conference ID is 13750794. The replay will be available through March 5, 2025.
The call will be webcast live and later archived from the Company's Investor Relations website.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to Guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos® pizza at select locations. It's easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering. Sign up for the royal treatment by joining Red Robin Royalty® today and enjoy Bottomless perks and delicious rewards across nearly 500 Red Robin locations in
Forward-Looking Statements
Forward-looking statements in this press release and in today's conference call regarding the Company's future performance; the implementation of the Company's "North Star" plan and the anticipated impacts thereof; the completion of anticipated property sales transactions(s) and anticipated use of proceeds thereof; marketing strategy and brand positioning; new menu items; the anticipated impacts of our recently relaunched loyalty program; our ability to drive traffic, improve traffic trends and bring Guests into the restaurant; efforts to grow sales; our ability to build upon investments and transformational changes, including operational enhancements and changes to the staffing model and compensation programs; our ability to gain efficiency in our operations to deliver growth in profitability; changes to our restaurant portfolio; and statements under the heading "Outlook for Fiscal 2025 and Guidance Policy," including with respect to total revenue, restaurant level operating profit, capital expenditures and Adjusted EBITDA; 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 are subject to various risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to the following: the risk that our performance for the remainder of 2025 will not be consistent with the Company's results during the first eight weeks of 2025; the effectiveness of the Company's strategic initiatives, including our "North Star" plan, labor and service models, and operational improvement initiatives and our ability to execute on such strategic initiatives; the global and domestic economic and geopolitical environment; our ability to effectively compete in the industry and attract and retain Guests; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; our ability to service our debt and comply with the covenants in our credit facility; a privacy or security breach or a failure of our information technology systems; the effectiveness and timing of the Company's marketing and branding strategies and impact on reputation, including the loyalty program and social media platforms; changes in consumer preferences; leasing space including the location of such leases in areas of declining traffic; changes in cost and availability of commodities and the uncertain impact of tariffs or other potential disruptions in the supply chain; interruptions in the delivery of food and other products from third parties; pricing increases and labor costs; changes in consumer behavior or preference; aging technology infrastructure; expanding our restaurant base; maintaining and improving our existing restaurants; potential acquisitions or refranchising of our restaurants; our geographic concentration in the
Comparable Restaurant Revenue
The following table presents the percentage change in comparable restaurant revenue in each quarter and the full year of fiscal 2024:
Increase (Decrease) Versus Prior Year | |||||
Sixteen Weeks April 21, 2024 | Twelve Weeks July 14, 2024 | Twelve Weeks October 6, 2024 | Twelve Weeks December 29, 2024 | Fifty-Two Weeks December 29, 2024 | |
Guest Traffic | (9.4) % | (6.7) % | (4.3) % | (3.4) % | (5.9) % |
Menu Price Increase | 5.4 % | 7.6 % | 7.5 % | 9.0 % | 7.3 % |
Menu Mix | (1.7) % | (0.9) % | (1.1) % | (1.0) % | (1.8) % |
Discounts | (0.6) % | (0.8) % | (1.4) % | (1.2) % | (0.9) % |
Change in unearned loyalty revenue | (0.2) % | 2.2 % | (0.1) % | (1.6) % | 0.1 % |
Total Change in Comparable Restaurant Revenue | (6.5) % | 1.4 % | 0.6 % | 1.8 % | (1.2) % |
RED ROBIN GOURMET BURGERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||
Twelve Weeks | Thirteen Weeks | Fifty-Two Weeks | Fifty-Three Weeks | |||||
December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | |||||
Revenues: | ||||||||
Restaurant revenue | $ 280,624 | $ 300,987 | $ 1,224,254 | $ 1,274,294 | ||||
Franchise royalties, fees, and other revenue | 4,603 | 8,038 | 24,306 | 28,752 | ||||
Total revenues | 285,227 | 309,025 | 1,248,560 | 1,303,046 | ||||
Costs and expenses: | ||||||||
Restaurant operating costs (excluding depreciation and | ||||||||
Cost of sales | 67,633 | 72,791 | 292,392 | 308,962 | ||||
Labor | 109,073 | 114,697 | 479,631 | 473,538 | ||||
Other operating | 48,229 | 50,755 | 216,242 | 224,999 | ||||
Occupancy | 23,510 | 25,955 | 103,359 | 102,761 | ||||
Depreciation and amortization | 12,843 | 13,938 | 57,729 | 66,190 | ||||
General and administrative | 18,443 | 22,703 | 81,721 | 89,360 | ||||
Selling | 5,665 | 12,078 | 36,719 | 34,770 | ||||
Pre-opening costs | — | 2 | — | 587 | ||||
Impairment and other charges (gains), net | 33,360 | 4,063 | 33,848 | (2,663) | ||||
Total costs and expenses | 318,756 | 316,982 | 1,301,641 | 1,298,504 | ||||
Income (loss) from operations | (33,529) | (7,957) | (53,081) | 4,542 | ||||
Other expense: | ||||||||
Interest expense, net and other | 6,321 | 5,919 | 24,550 | 25,460 | ||||
Loss before income taxes | (39,850) | (13,876) | (77,631) | (20,918) | ||||
Income tax expense (benefit) | (134) | (143) | (90) | 310 | ||||
Net loss | $ (39,716) | $ (13,733) | $ (77,541) | $ (21,228) | ||||
Loss per share: | ||||||||
Basic | $ (2.48) | $ (0.87) | $ (4.93) | $ (1.34) | ||||
Diluted | $ (2.48) | $ (0.87) | $ (4.93) | $ (1.34) | ||||
Weighted average shares outstanding: | ||||||||
Basic | 16,014 | 15,806 | 15,736 | 15,835 | ||||
Diluted | 16,014 | 15,806 | 15,736 | 15,835 | ||||
RED ROBIN GOURMET BURGERS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts)
| ||||
(Unaudited) | ||||
December 29, 2024 | December 31, 2023 | |||
Assets: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 30,651 | $ 23,634 | ||
Accounts receivable, net | 19,688 | 21,592 | ||
Inventories | 26,737 | 26,839 | ||
Prepaid expenses and other current assets | 13,608 | 11,785 | ||
Restricted cash | 8,750 | 7,931 | ||
Total current assets | 99,434 | 91,781 | ||
Property and equipment, net | 181,224 | 261,258 | ||
Operating lease assets, net | 331,617 | 361,609 | ||
Intangible assets, net | 11,064 | 15,491 | ||
Assets held for sale | 4,313 | — | ||
Other assets, net | 13,662 | 11,795 | ||
Total assets | $ 641,314 | $ 741,934 | ||
Liabilities and stockholders' equity: | ||||
Current liabilities: | ||||
Accounts payable | $ 29,783 | $ 27,726 | ||
Accrued payroll and payroll-related liabilities | 39,672 | 32,524 | ||
Unearned revenue | 27,083 | 36,067 | ||
Current portion of operating lease obligations | 50,083 | 43,819 | ||
Accrued liabilities and other | 42,931 | 46,201 | ||
Total current liabilities | 189,552 | 186,337 | ||
Long-term debt | 181,641 | 182,594 | ||
Long-term portion of operating lease obligations | 345,635 | 383,439 | ||
Other non-current liabilities | 8,755 | 10,006 | ||
Total liabilities | 725,583 | 762,376 | ||
Stockholders' equity (deficit): | ||||
Common stock; | 22 | 20 | ||
Preferred stock, | — | — | ||
Treasury stock 4,647 and 4,921 shares, at cost as of December 29, 2024 and December 31, 2023 | (164,937) | (174,702) | ||
Paid-in capital | 233,667 | 229,680 | ||
Accumulated other comprehensive loss, net of tax | (62) | (22) | ||
Accumulated deficit | (152,959) | (75,418) | ||
Total stockholders' deficit | (84,269) | (20,442) | ||
Total liabilities and stockholders' deficit | $ 641,314 | $ 741,934 | ||
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally Accepted Accounting Principles ("GAAP") throughout this press release, the Company has provided Adjusted EBITDA, Adjusted net income (loss) and Adjusted net income (loss) per share - diluted, which are non-GAAP measurements. We define EBITDA as net income (loss) before interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA, Adjusted net income (loss) and Adjusted net income (loss) per share-diluted are supplemental measures of our performance that are not required by or presented in accordance with GAAP. We believe these non-GAAP measures give the reader additional insight into the ongoing operational results of the Company, and are intended to supplement the presentation of the Company's financial results in accordance with GAAP. Adjusted EBITDA, Adjusted net income (loss) and Adjusted net income (loss) per share-diluted exclude the impact of non-operating or nonrecurring items including changes in estimate, asset impairments, litigation contingencies, gains (losses) on debt extinguishment, restaurant and office closure costs, gains on sale leaseback transactions, severance and executive transition costs and other non-recurring, non-cash or discrete items; net of income tax impacts. Adjusted EBITDA excluding stock-based compensation expense and adjusted income (loss) per share-diluted excluding stock-based compensation expense are calculated as Adjusted EBITDA and adjusted income (loss) per share-diluted, respectively, further adjusted to remove stock-based compensation expense. Other companies may define these non-GAAP measures differently, and as a result may not be directly comparable to those of other companies. Management believes this supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein.
The Company believes restaurant level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant level operating efficiency and performance. The Company defines restaurant level operating profit to be income from operations less franchise royalties, fees and other revenue, plus impairment and other charges (gains), net, pre-opening costs, selling costs, general and administrative expenses, and depreciation and amortization. The measure includes restaurant level occupancy costs that include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes costs associated with selling, general, and administrative functions, pre-opening costs, as well as, impairment and other charges (gains), net because these costs are non-operating or nonrecurring and therefore not related to the ongoing operations of its restaurants. Restaurant level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income (loss) from operations as an indicator of financial performance. Restaurant level operating profit as presented may not be comparable to other similarly titled measures of other companies in the Company's industry.
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss) and Adjusted Income (Loss) per Share - Diluted (In thousands, except per share data, unaudited) | ||||||||
Twelve Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks Ended | Fifty-Three Weeks Ended | |||||
December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | |||||
Net loss as reported | $ (39,716) | $ (13,733) | $ (77,541) | $ (21,228) | ||||
Gift card breakage | — | 480 | — | 480 | ||||
Impairment and other charges (gains), net: | ||||||||
Asset impairment and restaurant closures costs, net | 32,351 | 3,458 | 34,080 | 12,192 | ||||
Gain on sale of restaurant property | — | (129) | (7,425) | (29,543) | ||||
Severance and executive transition | 77 | 224 | 1,181 | 3,419 | ||||
Litigation contingencies | (10) | — | 1,037 | 9,140 | ||||
Asset disposal and other, net | 942 | 510 | 4,975 | 2,129 | ||||
Income tax effect | (8,674) | (1,181) | (8,800) | 568 | ||||
Adjusted net loss | $ (15,030) | $ (10,371) | $ (52,493) | $ (22,843) | ||||
Stock-based compensation expense | 1,760 | 1,762 | 6,889 | 6,804 | ||||
Adjusted net loss excluding Stock-based | $ (13,270) | $ (8,609) | $ (45,604) | $ (16,039) | ||||
Loss per share - diluted: | ||||||||
Net loss as reported | $ (2.48) | $ (0.87) | $ (4.93) | $ (1.34) | ||||
Gift card breakage | — | 0.03 | — | 0.03 | ||||
Impairment and other charges (gains), net: | ||||||||
Asset impairment and restaurant closure costs, net | 2.02 | 0.22 | 2.17 | 0.77 | ||||
Gain on sale of restaurant property | — | (0.01) | (0.47) | (1.87) | ||||
Severance and executive transition | — | 0.01 | 0.08 | 0.22 | ||||
Litigation contingencies | — | — | 0.07 | 0.58 | ||||
Asset disposal and other, net | 0.06 | 0.03 | 0.32 | 0.13 | ||||
Income tax effect | (0.54) | (0.07) | (0.58) | 0.04 | ||||
Adjusted loss per share - diluted | $ (0.94) | $ (0.66) | $ (3.34) | $ (1.44) | ||||
Stock-based compensation expense | 0.11 | 0.11 | 0.44 | 0.43 | ||||
Adjusted loss per share excluding Stock-based | (0.83) | (0.55) | (2.90) | (1.01) | ||||
Weighted average shares outstanding: | ||||||||
Basic | 16,014 | 15,806 | 15,736 | 15,835 | ||||
Diluted | 16,014 | 15,806 | 15,736 | 15,835 | ||||
(1) | Beginning in the first quarter of fiscal 2025, the Company intends to revise its definition of Adjusted Net income (loss) to exclude noncash stock-based compensation expense. The Company believes this change will provide investors with a better understanding of our financial performance from period to period. Previously reported results will be revised to reflect the new presentation. |
Reconciliation of Income (Loss) from Operations to Non-GAAP Restaurant-Level Operating Profit (In thousands, unaudited) | |||||||||||||||
Twelve Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks | Fifty-Three Weeks | ||||||||||||
December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | ||||||||||||
Income (loss) from operations | $ (33,529) | (11.8) % | $ (7,957) | (2.6) % | $ (53,081) | (4.3) % | $ 4,542 | 0.3 % | |||||||
Less: | |||||||||||||||
Franchise royalties, fees and other revenue | 4,603 | 1.6 % | 8,038 | 2.6 % | 24,306 | 2.0 % | 28,752 | 2.2 % | |||||||
Add: | |||||||||||||||
Impairment and other charges (gains), net | 33,360 | 11.7 | 4,063 | 1.3 | 33,848 | 2.7 | (2,663) | (0.2) | |||||||
Pre-opening costs | — | — | 2 | — | — | — | 587 | — | |||||||
General and administrative expenses | 18,443 | 6.5 | 22,703 | 7.3 | 81,721 | 6.5 | 89,360 | 6.9 | |||||||
Selling | 5,665 | 2.0 | 12,078 | 3.9 | 36,719 | 2.9 | 34,770 | 2.7 | |||||||
Depreciation and amortization | 12,843 | 4.5 | 13,938 | 4.5 | 57,729 | 4.6 | 66,190 | 5.1 | |||||||
Restaurant-level operating profit | $ 32,179 | 11.5 % | $ 36,789 | 12.2 % | $ 132,630 | 10.8 % | $ 164,034 | 12.9 % | |||||||
Income (loss) from operations as a | (11.8) % | (2.6) % | (4.3) % | 0.3 % | |||||||||||
Restaurant-level operating profit margin | 11.5 % | 12.2 % | 10.8 % | 12.9 % | |||||||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (In thousands, unaudited) | |||||||
Twelve Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks | Fifty-Three Weeks | ||||
December 29, 2024 | December 31, 2023 | December 29, 2024 | December 31, 2023 | ||||
Net loss as reported | $ (39,716) | $ (13,733) | $ (77,541) | $ (21,228) | |||
Interest expense, net | 6,301 | 6,030 | 24,805 | 25,796 | |||
Income tax provision (benefit) | (134) | (143) | (90) | 310 | |||
Depreciation and amortization | 12,843 | 13,938 | 57,729 | 66,190 | |||
EBITDA | (20,706) | 6,092 | 4,903 | 71,068 | |||
Gift card breakage | — | 480 | — | 480 | |||
Impairment and other charges (gains), net: | |||||||
Asset impairment and restaurant closure costs, net | 32,351 | 3,458 | 34,080 | 12,192 | |||
Gain on sale of restaurant property | — | (129) | (7,425) | (29,543) | |||
Severance and executive transition | 77 | 224 | 1,181 | 3,419 | |||
Litigation contingencies | (10) | — | 1,037 | 9,140 | |||
Asset disposal and other, net | 942 | 510 | 4,975 | 2,129 | |||
Adjusted EBITDA | $ 12,654 | $ 10,635 | $ 38,751 | $ 68,885 | |||
Stock-based compensation expense | 1,760 | 1,762 | 6,889 | 6,804 | |||
Adjusted EBITDA excluding Stock-based | 14,414 | 12,397 | 45,640 | 75,689 | |||
The following table reconciles Adjusted EBITDA to Adjusted EBITDA excluding Stock-based compensation expense in each quarter and the full year of fiscal 2024.
Sixteen Weeks | Twelve Weeks | Twelve Weeks | Twelve Weeks | Fifty-Two Weeks | |||||
April 21, 2024 | July 14, 2024 | October 6, 2024 | December 29, 2024 | December 29, 2024 | |||||
Net loss as reported | $ (9,460) | $ (9,489) | $ (18,876) | $ (39,716) | $ (77,541) | ||||
Interest expense, net | 7,313 | 4,997 | 6,193 | 6,301 | 24,805 | ||||
Income tax provision (benefit) | 181 | (40) | (98) | (134) | (90) | ||||
Depreciation and amortization | 18,154 | 13,402 | 13,330 | 12,843 | 57,729 | ||||
EBITDA | 16,188 | 8,870 | 549 | (20,706) | 4,903 | ||||
Impairment and other charges (gains), net: | |||||||||
Asset impairment and restaurant closure costs, net | 175 | 1,551 | 3 | 32,351 | 34,080 | ||||
Gain on sale of restaurant property | (7,425) | — | — | — | (7,425) | ||||
Severance and executive transition | 945 | 137 | 22 | 77 | 1,181 | ||||
Litigation contingencies | 420 | 356 | 271 | (10) | 1,037 | ||||
Asset disposal and other, net | 1,909 | 887 | 1,236 | 942 | 4,975 | ||||
Adjusted EBITDA | $ 12,212 | $ 11,801 | $ 2,081 | $ 12,654 | $ 38,751 | ||||
Stock-based compensation expense | 1,168 | 1,839 | 2,122 | 1,760 | 6,889 | ||||
Adjusted EBITDA excluding Stock-based | 13,380 | 13,640 | 4,203 | 14,414 | 45,640 |
(1) | Beginning in the first quarter of fiscal 2025, the Company intends to revise its definition of Adjusted EBITDA to exclude noncash stock-based compensation expense. The Company believes this change will provide investors with a better understanding of our financial performance from period to period. Previously reported results will be revised to reflect the new presentation. |
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SOURCE Red Robin Gourmet Burgers, Inc.
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