Red Robin: Reported Results for Fiscal Q2-2024

Englewood / CO. (rrgb) Red Robin Gourmet Burgers Inc., a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, reported financial results for the fiscal second quarter ended July 14 (Q2-2024).

Highlights for the Second Quarter of Fiscal 2024, Compared to Q2-2023

• Total revenues are USD 300.2 million, an increase of USD 1.5 million.
• Comparable restaurant revenue declined 0.8 percent excluding a deferred revenue benefit led by the change in the Company’s loyalty program. Including this benefit, Comparable restaurant revenue increased 1.4 percent.
• Net loss is USD 9.5 million, compared to net income of USD 3.9 million last year.
• Adjusted Ebitda is USD 11.8 million compared to USD 15.5 million last year.
• Subsequent to the close of the second quarter, executed an amendment to the credit agreement that revises financial covenants and expands revolver capacity.

Highlights for the YTD Period of Fiscal 2024, Compared to the YTD Period 2023

• Total revenues are USD 688.7 million, a decrease of USD 27.8 million.
• Comparable restaurant revenue declined 4.0 percent excluding a deferred revenue benefit led by the change in the Company’s loyalty program. Including this benefit, Comparable restaurant revenue declined 3.2 percent.
• Net loss is USD 18.9 million, compared to net income of USD 0.7 million last year.
• Adjusted Ebitda is USD 24.0 million compared to USD 51.9 million last year.
• Completed a sale-leaseback transaction for ten restaurants in the first quarter of fiscal 2024, generating net proceeds of approximately USD 23.3 million and a gain, net of expenses of USD 7.4 million.

Chief Executive’s Commentary

President and CEO G.J. Hart: «Our results for the second quarter and our reduced guidance for the year are not what we expected when we last communicated in May, with the slowdown experienced in the broader restaurant industry masking the substantial progress we continue to make against our North Star plan. That said, we have seen multiple proof points that indicate the initiatives we implemented over the past 20 months have elevated the guest experience. This is showcased best by guest satisfaction scores increasing to levels Red Robin has not achieved since 2016; comparable restaurant revenue exceeding the industry average during the past 3 months, as measured by Black Box; and traffic growth in line with the industry. In each of the trailing 3 weeks, despite the challenging environment, comparable restaurant revenue has returned to marginally positive. With this progress, we continue to expect to meet or exceed the industry average on traffic through the remainder of the year. Collectively, the actions we are taking and the great feedback we continue to receive from guests and team members, give us confidence we are on the path to long-term success for this beloved brand.» For additional info please read the PDF file below (94 KB):

20240824-RED-ROBIN-Q22024.