Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Third Quarter Ended October 6, 2024
Red Robin Gourmet Burgers (NASDAQ: RRGB) reported its fiscal third-quarter results for the period ending October 6, 2024. Total revenues were $274.6 million, a decrease of $2.9 million from the same period last year. Comparable restaurant revenue increased by 0.6%. However, the net loss widened to $18.9 million from $8.2 million in the previous year, and adjusted EBITDA dropped to $2.1 million from $6.8 million. The relaunch of the loyalty program saw membership rise to 14.5 million. Post-quarter, Red Robin amended its credit agreement, extending financial covenants and expanding revolver capacity through Q1 2026.
Year-to-date, total revenues are $963.3 million, down $30.7 million. Comparable restaurant revenue declined by 2.6%, and net loss ballooned to $37.8 million from $7.5 million. Adjusted EBITDA fell to $26.1 million from $58.3 million. Red Robin completed a sale-leaseback transaction generating $23.3 million. The company updated its 2024 guidance, projecting total revenue around $1.25 billion and adjusted EBITDA between $35.0 million to $37.5 million.
Red Robin Gourmet Burgers (NASDAQ: RRGB) ha riportato i risultati del terzo trimestre fiscale per il periodo che si è concluso il 6 ottobre 2024. I ricavi totali sono stati di 274,6 milioni di dollari, una diminuzione di 2,9 milioni di dollari rispetto allo stesso periodo dell'anno scorso. I ricavi dei ristoranti comparabili sono aumentati dello 0,6%. Tuttavia, la perdita netta è aumentata a 18,9 milioni di dollari rispetto agli 8,2 milioni dell'anno precedente e l'EBITDA rettificato è sceso a 2,1 milioni di dollari dai 6,8 milioni. Il rilancio del programma di fidelizzazione ha visto il numero di membri crescere a 14,5 milioni. Dopo il trimestre, Red Robin ha modificato il suo accordo di credito, estendendo i vincoli finanziari e aumentando la capacità di rotazione fino al primo trimestre del 2026.
Fino ad oggi, i ricavi totali sono stati di 963,3 milioni di dollari, in calo di 30,7 milioni. I ricavi dei ristoranti comparabili sono diminuiti del 2,6% e la perdita netta è aumentata a 37,8 milioni di dollari rispetto ai 7,5 milioni. L'EBITDA rettificato è sceso a 26,1 milioni di dollari dai 58,3 milioni. Red Robin ha completato una transazione di vendita e leasing generando 23,3 milioni di dollari. L'azienda ha aggiornato le sue previsioni per il 2024, prevedendo ricavi totali intorno a 1,25 miliardi di dollari e un EBITDA rettificato compreso tra 35,0 milioni e 37,5 milioni.
Red Robin Gourmet Burgers (NASDAQ: RRGB) informó sus resultados del tercer trimestre fiscal para el periodo que finalizó el 6 de octubre de 2024. Los ingresos totales fueron de 274,6 millones de dólares, una disminución de 2,9 millones de dólares en comparación con el mismo periodo del año pasado. Los ingresos de los restaurantes comparables aumentaron un 0,6%. Sin embargo, la pérdida neta se amplió a 18,9 millones de dólares desde 8,2 millones del año anterior, y el EBITDA ajustado cayó a 2,1 millones de dólares desde 6,8 millones. El relanzamiento del programa de lealtad vio aumentar la membresía a 14,5 millones. Después del trimestre, Red Robin modificó su acuerdo de crédito, ampliando los convenios financieros y aumentando la capacidad de línea de crédito hasta el primer trimestre de 2026.
Hasta la fecha, los ingresos totales ascienden a 963,3 millones de dólares, una disminución de 30,7 millones. Los ingresos de los restaurantes comparables cayeron un 2,6%, y la pérdida neta se disparó a 37,8 millones de dólares desde 7,5 millones. El EBITDA ajustado cayó a 26,1 millones de dólares desde 58,3 millones. Red Robin completó una transacción de venta y arrendamiento que generó 23,3 millones de dólares. La empresa actualizó su guía para 2024, proyectando ingresos totales de alrededor de 1,25 mil millones de dólares y un EBITDA ajustado entre 35,0 millones y 37,5 millones.
레드 로빈 구르망 버거스(NASDAQ: RRGB)는 2024년 10월 6일 종료된 회계연도 3분기 실적을 보고했습니다. 총 수익은 2억 7460만 달러로, 지난해 같은 기간보다 290만 달러 감소했습니다. 동일 매장 수익은 0.6% 증가했습니다. 그러나 순손실은 지난해 820만 달러에서 1890만 달러로 확대되었고, 조정된 EBITDA는 680만 달러에서 210만 달러로 감소했습니다. 로열티 프로그램의 재출시로 회원 수는 1450만 명으로 증가했습니다. 분기 후, 레드 로빈은 신용 계약을 수정하여 재무 약정을 연장하고 2026년 1분기까지 회전 신용 한도를 확대했습니다.
연초부터 현재까지 총 수익은 9억 6330만 달러로 3070만 달러 감소했습니다. 동일 매장 수익은 2.6% 감소하였고, 순손실은 750만 달러에서 3780만 달러로 급증했습니다. 조정된 EBITDA는 5830만 달러에서 2610만 달러로 줄었습니다. 레드 로빈은 2330만 달러를 생성하는 매각-리스백 거래를 완료했습니다. 회사는 2024년 가이드를 업데이트하여 총 수익을 약 12억 5000만 달러, 조정된 EBITDA를 3500만 달러에서 3750만 달러 사이로 예상했습니다.
Red Robin Gourmet Burgers (NASDAQ: RRGB) a annoncé ses résultats pour le troisième trimestre fiscal pour la période se terminant le 6 octobre 2024. Les revenus totaux s'élèvent à 274,6 millions de dollars, soit une baisse de 2,9 millions de dollars par rapport à la même période l'année dernière. Les revenus des restaurants comparables ont augmenté de 0,6 %. Cependant, la perte nette s'est creusée pour atteindre 18,9 millions de dollars, contre 8,2 millions l'année précédente, et l'EBITDA ajusté a chuté à 2,1 millions de dollars, contre 6,8 millions. Le relancement du programme de fidélité a vu le nombre d'adhérents atteindre 14,5 millions. Après le trimestre, Red Robin a modifié son accord de crédit, en étendant les engagements financiers et en augmentant la capacité de crédit jusqu'au premier trimestre 2026.
Depuis le début de l'année, les revenus totaux s'élèvent à 963,3 millions de dollars, en baisse de 30,7 millions. Les revenus des restaurants comparables ont baissé de 2,6 %, et la perte nette a explosé à 37,8 millions de dollars, contre 7,5 millions. L'EBITDA ajusté est tombé à 26,1 millions de dollars, contre 58,3 millions. Red Robin a complété une transaction de vente-bail générant 23,3 millions de dollars. L'entreprise a mis à jour ses prévisions pour 2024, visant un chiffre d'affaires total d'environ 1,25 milliard de dollars et un EBITDA ajusté compris entre 35,0 millions et 37,5 millions de dollars.
Red Robin Gourmet Burgers (NASDAQ: RRGB) hat seine Ergebnisse für das dritte Quartal des Geschäftsjahres für den Zeitraum bis zum 6. Oktober 2024 bekannt gegeben. Die Gesamterlöse betrugen 274,6 Millionen Dollar, was einem Rückgang von 2,9 Millionen Dollar im Vergleich zum gleichen Zeitraum des letzten Jahres entspricht. Die vergleichbaren Restaurantumsätze stiegen um 0,6%. Die Nettoverluste erweiteten sich jedoch auf 18,9 Millionen Dollar im Vergleich zu 8,2 Millionen Dollar im Vorjahr, und das angepasste EBITDA sank von 6,8 Millionen Dollar auf 2,1 Millionen Dollar. Die Wiederbelebung des Treueprogramms führte zu einem Anstieg der Mitgliedszahlen auf 14,5 Millionen. Nach dem Quartal änderte Red Robin seine Kreditvereinbarung, indem es die finanziellen Verbindlichkeiten verlängerte und die Kreditlinie bis zum ersten Quartal 2026 erweiterte.
Bis heute belaufen sich die Gesamterlöse auf 963,3 Millionen Dollar, das ist ein Rückgang um 30,7 Millionen Dollar. Die vergleichbaren Restaurantumsätze sanken um 2,6%, und der Nettoverlust stieg auf 37,8 Millionen Dollar im Vergleich zu 7,5 Millionen Dollar. Das angepasste EBITDA fiel von 58,3 Millionen Dollar auf 26,1 Millionen Dollar. Red Robin hat eine Sale-Leaseback-Transaktion abgeschlossen, die 23,3 Millionen Dollar generierte. Das Unternehmen aktualisierte seine Prognose für 2024 und erwartet Gesamterlöse von etwa 1,25 Milliarden Dollar und ein angepasstes EBITDA zwischen 35,0 Millionen und 37,5 Millionen Dollar.
- Comparable restaurant revenue increased by 0.6% in Q3.
- Loyalty program membership rose to 14.5 million.
- Sale-leaseback transaction generated $23.3 million.
- Updated 2024 guidance projects total revenue of $1.25 billion.
- Total revenues decreased by $2.9 million in Q3.
- Net loss widened to $18.9 million from $8.2 million in Q3.
- Adjusted EBITDA dropped to $2.1 million from $6.8 million in Q3.
- Year-to-date total revenues fell by $30.7 million.
- Comparable restaurant revenue declined by 2.6% year-to-date.
- Year-to-date net loss increased to $37.8 million from $7.5 million.
- Year-to-date adjusted EBITDA decreased to $26.1 million from $58.3 million.
Insights
The Q3 results reveal concerning financial trends for Red Robin.
The company's debt position is worrying, with
While comparable restaurant sales showed a modest
The expanded loyalty program membership to 14.5 million members represents a bright spot, but hasn't translated into meaningful revenue growth. Restaurant-level operating profit margins declined to
The company's "North Star Plan" shows some promise with improved guest satisfaction scores, but the financial results don't reflect these improvements yet. The need for additional credit amendments and higher borrowing costs will likely constrain investment in growth initiatives and pressure margins further.
Delivers Comparable Restaurant Sales Increase
Relaunched Loyalty Program Continues Growth
Announces Credit Agreement Amendment
Highlights for the Third Quarter of Fiscal 2024, Compared to the Third Quarter of Fiscal 2023:
- Total revenues are
$274.6 million $2.9 million - Comparable restaurant revenue(1) increased
0.6% . - Net loss is
$18.9 million $8.2 million - Adjusted EBITDA(2) is
$2.1 million $6.8 million - Relaunched loyalty program increased to 14.5 million members compared to 13.1 million last year.
- Subsequent to the close of the third quarter, executed an amendment to the credit agreement that extends the adjustments to the financial covenants and expanded revolver capacity through the first quarter of fiscal 2026.
Highlights for the Year to Date Period of Fiscal 2024, Compared to the Year to Date Period of Fiscal 2023:
- Total revenues are
$963.3 million $30.7 million - Comparable restaurant revenue(1) declined
2.6% excluding a deferred revenue benefit led by the change in the Company's loyalty program. Including this benefit, Comparable restaurant revenue(1) declined2.1% . - Net loss is
$37.8 million $7.5 million - Adjusted EBITDA(2) is
$26.1 million $58.3 million - Completed a sale-leaseback transaction for ten restaurants in the first quarter of fiscal 2024, generating net proceeds of approximately
$23.3 million $7.4 million
(1) Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated 18 months as of the beginning of the period presented. |
(2) See "Reconciliation of Non-GAAP Results to GAAP Results" below for more details. |
G.J. Hart, Red Robin's President and Chief Executive Officer said, "Our third quarter results were largely in-line with our expectations and we continue to make progress against our North Star Plan."
Hart continued, "Our North Star Plan is working with our comparable restaurant revenue exceeding the industry average, as measured by BlackBox, and our traffic returning to in line with the industry as we moved through the third quarter. With our guest satisfaction scores continuing to improve and at levels not seen since 2016, our guests are beginning to reward us for the investments we have made to revitalize Red Robin. Importantly, we are capitalizing on this momentum through our re-launched loyalty program and believe we are only scratching the surface of our potential."
Hart concluded, "Despite the macroeconomic backdrop that has made our comeback journey more challenging, our team has remained focused on what we can control through effective execution of our strategic plan. Ultimately, we believe we are on the right path to drive sustainable long-term growth and return this beloved brand to prominence in the industry."
Third Quarter 2024 Financial Summary
The following table presents financial results for the fiscal third quarter and year to date periods of 2024, compared to results from the same periods in 2023 ($ in millions except per share data):
Twelve Weeks Ended | Forty Weeks Ended | |||||||
October 6, 2024 | October 1, 2023 | October 6, 2024 | October 1, 2023 | |||||
Total revenues | $ 274.6 | $ 277.6 | $ 963.3 | $ 994.0 | ||||
Restaurant revenues | 270.6 | 273.1 | 943.6 | 973.3 | ||||
Net income (loss) | (18.9) | (8.2) | (37.8) | (7.5) | ||||
Income (loss) from operations | (12.9) | (1.9) | (19.6) | 12.5 | ||||
Income (loss) from operations as a percent of total revenues | (4.7) % | (0.7) % | (2.0) % | 1.3 % | ||||
Restaurant Level Operating Profit(1) | $ 24.2 | $ 30.4 | $ 100.4 | $ 127.2 | ||||
Restaurant Level Operating Profit Margin(1) | 9.0 % | 11.1 % | 10.6 % | 13.1 % | ||||
Adjusted EBITDA (1) | $ 2.1 | $ 6.8 | $ 26.1 | $ 58.3 | ||||
Net income (loss) per diluted share | $ (1.20) | $ (0.52) | $ (2.42) | $ (0.47) | ||||
Adjusted income (loss) per diluted share(1) | $ (1.13) | $ (0.79) | $ (2.39) | $ (0.78) | ||||
(1) See "Reconciliation of Non-GAAP Results to GAAP Results" below for more details. |
Balance Sheet and Liquidity
As of October 6, 2024, Red Robin had outstanding borrowings under its credit facility of
On August 21, 2024, the Company entered into the second amendment to our credit agreement (the "Second Amendment"). The Second Amendment among other things: provides certain relief by increasing the required maximum net total leverage ratio covenant beginning in the third quarter of 2024 through the third quarter of 2025; increases the aggregate revolving commitments by
On November 4, 2024, the Company entered into the third amendment to our credit agreement (the "Third Amendment") which extended the terms of the Second Amendment through the first quarter of 2026.
The Second Amendment and Third Amendment provide additional flexibility to support the Company's execution of its North Star business strategy. Additional information on the terms of the Second Amendment and Third Amendment can be found in the Company's Form 10-Q for the third quarter filed with the Securities and Exchange Commission.
Outlook for Fiscal 2024 and Guidance Policy
The Company provides guidance of select information related to its 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 updated guidance for fiscal 2024 is:
- Total revenue of approximately
$1.25 0 billion - Restaurant level operating profit of at least
10.5% , inclusive of investments in the Guest experience and rent expense related to the sale leaseback transactions; - Adjusted EBITDA of
$35.0 million $37.5 million - Capital expenditures of approximately
$25 million
Fiscal 2024 includes 52 weeks versus 53 weeks in fiscal 2023.
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 financial results for its third quarter of fiscal 2024 and outlook for fiscal 2024 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 conference call and can be accessed by dialing 412-317-6671; the conference ID is 13748266. The replay will be available through Wednesday, November 13, 2024.
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 now easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering, or you can download our new app for easy customization, access to the Red Robin Royalty® dashboard and more. There are more than 500 Red Robin restaurants across
Forward-Looking Statements
Forward-looking statements in this press release and in today's investor conference call regarding the Company's future performance; the implementation of the Company's "North Star" plan and the anticipated impacts thereof; our marketing strategy and brand positioning; the anticipated impacts of our recently re-launched loyalty program; operations improvement efforts; cost savings; our ability to drive traffic and bring Guests into our restaurants; guest satisfaction scores; macroeconomic conditions; our expectations for the fourth quarter; efforts to grow sales; our ability to build upon investments and transformational changes; anticipated uses of capital and planned investments; the flexibility provided by the Second Amendment and Third Amendment to our credit facility; plans for our restaurant portfolio; and statements under the heading "Outlook for Fiscal 2024 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 2024 will not be consistent with the first four weeks of the fourth quarter; 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 and the impacts on the restaurant industry; 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; 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, including the loyalty program and social media platforms; unanticipated changes in Guest traffic; changes in consumer preferences; leasing space including the location of such leases in areas of declining traffic; changes in cost and availability of commodities; interruptions in the delivery of food and other products from third parties; pricing increases and labor costs; changes in consumer behavior or preference; expanding our restaurant base; maintaining and improving our existing restaurants; the transition and retention of our key personnel; our ability to recruit, staff, train, and retain our workforce; operating conditions, including adverse weather conditions, natural disasters, pandemics and other events affecting the regions where our restaurants are operated; actions taken by our franchisees that could harm our business or reputation; negative publicity regarding food safety or health concerns; protection of our intellectual property rights; changes in federal, state, or local laws and regulations affecting the operation of our restaurants; and an increase in litigation or legal claims by team members, franchisees, customers, vendors, stockholders and others. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements and 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
Comparable Restaurant Revenue
The following table presents the percentage change in comparable restaurant revenue in the first quarter, second quarter, third quarter, and year to date periods of fiscal 2024:
Increase (Decrease) Versus Prior Year | |||||||
Sixteen Weeks | Twelve Weeks | Twelve Weeks | Forty Weeks | ||||
Guest Traffic | (9.4) % | (6.7) % | (4.3) % | (6.5) % | |||
Menu Price Increase | 5.4 % | 7.6 % | 7.5 % | 6.7 % | |||
Menu Mix | (1.7) % | (0.9) % | (1.1) % | (2.0) % | |||
Discounts | (0.6) % | (0.8) % | (1.4) % | (0.8) % | |||
Change in unearned loyalty revenue | (0.2) % | 2.2 % | (0.1) % | 0.5 % | |||
Total Change in Comparable Restaurant Revenue | (6.5) % | 1.4 % | 0.6 % | (2.1) % | |||
RED ROBIN GOURMET BURGERS, INC. | |||||||
Twelve Weeks Ended | Forty Weeks Ended | ||||||
October 6, 2024 | October 1, 2023 | October 6, 2024 | October 1, 2023 | ||||
Revenues: | |||||||
Restaurant revenue | $ 270,605 | $ 273,133 | $ 943,630 | $ 973,307 | |||
Franchise revenue | 3,007 | 3,418 | 12,635 | 12,245 | |||
Other revenue | 1,026 | 1,009 | 7,068 | 8,468 | |||
Total revenues | 274,638 | 277,560 | 963,333 | 994,020 | |||
Costs and expenses: | |||||||
Restaurant operating costs (excluding depreciation and | |||||||
Cost of sales | 65,105 | 65,128 | 224,759 | 236,171 | |||
Labor | 107,692 | 103,741 | 370,559 | 358,841 | |||
Other operating | 49,740 | 50,351 | 168,014 | 174,243 | |||
Occupancy | 23,826 | 23,523 | 79,850 | 76,806 | |||
Depreciation and amortization | 13,330 | 14,672 | 44,886 | 52,253 | |||
General and administrative | 20,823 | 18,543 | 63,277 | 64,801 | |||
Selling | 5,467 | 9,418 | 31,052 | 24,547 | |||
Pre-opening costs | — | — | — | 586 | |||
Other charges (gains), net | 1,532 | (5,878) | 487 | (6,726) | |||
Total costs and expenses | 287,515 | 279,498 | 982,884 | 981,522 | |||
Income (loss) from operations | (12,877) | (1,938) | (19,551) | 12,498 | |||
Other expense: | |||||||
Interest expense | 6,322 | 6,103 | 18,907 | 20,355 | |||
Interest income and other, net | (225) | (158) | (676) | (814) | |||
Loss before income taxes | (18,974) | (7,883) | (37,782) | (7,043) | |||
Income tax provision (benefit) | (98) | 278 | 43 | 453 | |||
Net loss | $ (18,876) | $ (8,161) | $ (37,825) | $ (7,496) | |||
Loss per share: | |||||||
Basic | $ (1.20) | $ (0.52) | $ (2.42) | $ (0.47) | |||
Diluted | $ (1.20) | $ (0.52) | $ (2.42) | $ (0.47) | |||
Weighted average shares outstanding: | |||||||
Basic | 15,754 | 15,799 | 15,652 | 15,949 | |||
Diluted | 15,754 | 15,799 | 15,652 | 15,949 | |||
RED ROBIN GOURMET BURGERS, INC. | ||||
October 6, 2024 | December 31, 2023 | |||
Assets: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 21,988 | $ 23,634 | ||
Accounts receivable, net | 11,283 | 21,592 | ||
Inventories | 27,498 | 26,839 | ||
Prepaid expenses and other current assets | 10,370 | 11,785 | ||
Restricted cash | 8,300 | 7,931 | ||
Total current assets | 79,439 | 91,781 | ||
Property and equipment, net | 217,073 | 261,258 | ||
Operating lease assets, net | 345,364 | 361,609 | ||
Intangible assets, net | 13,676 | 15,491 | ||
Other assets, net | 13,896 | 11,795 | ||
Total assets | $ 669,448 | $ 741,934 | ||
Liabilities and stockholders' equity (deficit): | ||||
Current liabilities: | ||||
Accounts payable | $ 29,573 | $ 27,726 | ||
Accrued payroll and payroll-related liabilities | 33,908 | 32,524 | ||
Unearned revenue | 15,338 | 36,067 | ||
Current portion of operating lease obligations | 51,423 | 43,819 | ||
Accrued liabilities and other | 49,455 | 46,201 | ||
Total current liabilities | 179,697 | 186,337 | ||
Long-term debt | 180,688 | 182,594 | ||
Long-term portion of operating lease obligations | 353,435 | 383,439 | ||
Other non-current liabilities | 8,965 | 10,006 | ||
Total liabilities | 722,785 | 762,376 | ||
Stockholders' equity (deficit): | ||||
Common stock; | 20 | 20 | ||
Preferred stock, | — | — | ||
Treasury stock 4,670 and 4,921 shares, at cost, as of October 6, 2024 and December 31, 2023 | (165,747) | (174,702) | ||
Paid-in capital | 225,666 | 229,680 | ||
Accumulated other comprehensive loss, net of tax | (33) | (22) | ||
Accumulated deficit | (113,243) | (75,418) | ||
Total stockholders' equity (deficit) | (53,337) | (20,442) | ||
Total liabilities and stockholders' equity (deficit) | $ 669,448 | $ 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 estimates, 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. 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 revenue and other revenue, plus 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, 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 | ||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||
October 6, 2024 | October 1, 2023 | October 6, 2024 | October 1, 2023 | |||||
Net income (loss) as reported | $ (18,876) | $ (8,161) | $ (37,825) | $ (7,496) | ||||
Other Charges (gains), net: | ||||||||
Gain on sale of restaurant property | — | (14,883) | (7,425) | (29,413) | ||||
Litigation contingencies | 271 | 3,600 | 1,047 | 9,140 | ||||
Restaurant closure costs, net | (175) | (91) | 422 | 1,546 | ||||
Severance and executive transition | 22 | 341 | 1,104 | 3,195 | ||||
Asset impairment | 178 | 4,800 | 1,306 | 7,187 | ||||
Asset disposal and other, net | 1,179 | 277 | 3,799 | 1,366 | ||||
Closed corporate office costs, net of sublease income | 57 | 78 | 234 | 253 | ||||
Income tax effect | (398) | 1,528 | (127) | 1,749 | ||||
Adjusted net income (loss) | $ (17,742) | $ (12,511) | $ (37,465) | $ (12,473) | ||||
Income (loss) per share - diluted: | ||||||||
Net income (loss) as reported | $ (1.20) | $ (0.52) | $ (2.42) | $ (0.47) | ||||
Other charges (gains), net: | ||||||||
Gain on sale of restaurant property | — | (0.94) | (0.47) | (1.84) | ||||
Litigation contingencies | 0.02 | 0.23 | 0.07 | 0.57 | ||||
Restaurant closure costs, net | (0.01) | (0.01) | 0.03 | 0.10 | ||||
Severance and executive transition | — | 0.02 | 0.07 | 0.20 | ||||
Asset impairment | 0.01 | 0.30 | 0.08 | 0.45 | ||||
Asset disposal and other, net | 0.07 | 0.02 | 0.24 | 0.09 | ||||
Closed corporate office costs, net of sublease income | — | — | 0.01 | 0.02 | ||||
Income tax effect | (0.03) | 0.10 | (0.01) | 0.11 | ||||
Adjusted income (loss) per share - diluted | (1.13) | (0.79) | (2.39) | (0.78) | ||||
Weighted average shares outstanding: | ||||||||
Basic | 15,754 | 15,799 | 15,652 | 15,949 | ||||
Diluted | 15,754 | 15,799 | 15,652 | 15,949 | ||||
Reconciliation of Income (Loss) from Operations to Non-GAAP Restaurant-Level Operating Profit | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
October 6, 2024 | October 1, 2023 | October 6, 2024 | October 1, 2023 | |||||||||||||
Income (loss) from operations | $ (12,877) | (4.7) % | $ (1,938) | (0.7) % | $ (19,551) | (2.0) % | $ 12,498 | 1.3 % | ||||||||
Less: | ||||||||||||||||
Franchise revenue | 3,007 | 1.1 % | 3,418 | 1.2 % | 12,635 | 1.3 % | 12,245 | 1.2 % | ||||||||
Other revenue | 1,026 | 0.4 % | 1,009 | 0.4 % | 7,068 | 0.7 % | 8,468 | 0.9 % | ||||||||
Add: | ||||||||||||||||
Other charges (gains), net | 1,532 | 0.6 % | (5,878) | (2.1) % | 487 | 0.1 % | (6,726) | (0.7) % | ||||||||
Pre-opening costs | — | — % | — | — % | — | — % | 586 | 0.1 % | ||||||||
Selling | 5,467 | 2.0 % | 9,418 | 3.4 % | 31,052 | 3.2 % | 24,547 | 2.5 % | ||||||||
General and administrative expenses | 20,823 | 7.6 % | 18,543 | 6.7 % | 63,277 | 6.6 % | 64,801 | 6.5 % | ||||||||
Depreciation and amortization | 13,330 | 4.9 % | 14,672 | 5.3 % | 44,886 | 4.7 % | 52,253 | 5.3 % | ||||||||
Restaurant-level operating profit | $ 24,242 | 9.0 % | $ 30,390 | 11.1 % | $ 100,448 | 10.6 % | $ 127,246 | 13.1 % | ||||||||
Income (loss) from operations as a percentage of total | (4.7) % | (0.7) % | (2.0) % | 1.3 % | ||||||||||||
Restaurant-level operating profit margin (as a | 9.0 % | 11.1 % | 10.6 % | 13.1 % | ||||||||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | |||||||
Twelve Weeks Ended | Forty Weeks Ended | ||||||
October 6, 2024 | October 1, 2023 | October 6, 2024 | October 1, 2023 | ||||
Net income (loss) as reported | $ (18,876) | $ (8,161) | $ (37,825) | $ (7,496) | |||
Interest expense, net | 6,193 | 5,885 | 18,504 | 19,766 | |||
Income tax provision (benefit) | (98) | 278 | 43 | 453 | |||
Depreciation and amortization | 13,330 | 14,672 | 44,886 | 52,253 | |||
EBITDA | 549 | 12,674 | 25,608 | 64,976 | |||
Other charges (gains), net: | |||||||
Gain on sale of restaurant property | — | (14,883) | (7,425) | (29,413) | |||
Litigation contingencies | 271 | 3,600 | 1,047 | 9,140 | |||
Restaurant closure costs (gains), net | (175) | (91) | 422 | 1,546 | |||
Severance and executive transition | 22 | 341 | 1,104 | 3,195 | |||
Asset impairment | 178 | 4,800 | 1,306 | 7,187 | |||
Asset disposal and other, net | 1,179 | 277 | 3,799 | 1,366 | |||
Closed corporate office costs, net of sublease income | 57 | 78 | 234 | 253 | |||
Adjusted EBITDA | $ 2,081 | $ 6,796 | $ 26,095 | $ 58,250 | |||
View original content:https://www.prnewswire.com/news-releases/red-robin-gourmet-burgers-inc-reports-results-for-the-fiscal-third-quarter-ended-october-6-2024-302297949.html
SOURCE Red Robin Gourmet Burgers, Inc.
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