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 fiscal second quarter ended July 10, 2022.
Results for the second quarter, as compared to the prior year
as applicable, included the following:
- Restaurant revenue of $288.7 million increased 6.1% compared to
2021;
- Ninth consecutive quarter of sustained off-premises sales
dollars of more than double pre-pandemic levels;
- Comparable restaurant revenue increased 6.7% and 4.1% compared
to 2021 and 2019, respectively;
- Approximately 200 restaurants serving Donatos® pizza
outperformed non-Donatos® locations by 8.4% in comparable
restaurant revenues compared to 2019;
- Net loss of $17.9 million increased $12.9 million compared to
2021;
- Restaurant level operating profit margin decreased by 210 basis
points driven primarily by commodity and wage rate inflation,
partially offset by sales leverage and other labor costs; and
- Adjusted EBITDA(1) (a non-GAAP metric) of $11.9 million
decreased $7.1 million compared to 2021.
Second Quarter 2022 Financial Summary Compared to
2021
The following table presents financial results for the fiscal
second quarter of 2022, compared to results from the same period in
2021:
Twelve Weeks Ended
July 10, 2022
July 11, 2021
Total revenues (millions)
$
294.1
$
277.0
Restaurant revenues (millions)
288.7
272.2
Net loss (millions)
(17.9
)
(5.0
)
Restaurant Level Operating Profit
(millions)(2)
$
39.3
$
42.7
Restaurant Level Operating Profit
Margin(2)
13.6
%
15.7
%
Adjusted EBITDA (millions)(1)
$
11.9
$
19.0
Loss per diluted share ($ per share)
$
(1.13
)
$
(0.32
)
Adjusted loss per diluted share ($ per
share)(2)
$
(0.75
)
$
(0.22
)
________________________________________
(1)
See schedule III for a reconciliation of
Adjusted EBITDA, a non-GAAP measure, to Net loss.
(2)
See schedule I for a reconciliation of
Adjusted loss per diluted share, a non-GAAP measure, to Loss per
diluted share, and schedule II for a reconciliation of Restaurant
level operating profit and Restaurant level operating profit
margin, non-GAAP measures, to Loss from operations.
Second Quarter 2022 Operating Results
Comparable restaurant revenue(3) increased 6.7% in the second
quarter of 2022 compared to the same period a year ago, driven by a
9.6% increase in average Guest check and a 2.9% decrease in Guest
count. The increase in average Guest check resulted from a 3.7%
increase in menu mix, primarily driven by our limited time menu
offerings and higher dine-in sales volumes, a 6.0% increase in
pricing, and a 0.1% decrease from higher discounts.
The increase in Net loss compared to 2021 was primarily due to
higher commodity and wage rate inflation, other charges, repairs
and maintenance, utilities and marketing expenses, partially offset
by a $16.5 million increase in restaurant revenue and decreases in
management incentive compensation and group insurance costs. The
decrease in Adjusted EBITDA(1) was due to the aforementioned
factors less the impact of Interest expense, Income tax benefits,
Depreciation and amortization, and Other charges.
Paul J. B. Murphy III, Red Robin’s President and Chief Executive
Officer, said, “In the face of industry challenges and an uncertain
macroeconomic environment, we are outpacing our peers with respect
to comparable restaurant revenue and traffic as measured by Black
Box Intelligence, and net value sentiment on social media channels.
We attribute our relative out-performance to a continuation of our
high-low value strategy which includes our successful premium
limited time product promotions that drive average check,
incremental margin and attachment, and compelling value promotions
to attract market share, like our $10 Gourmet Meal Deal, that
started in late June. With higher than expected commodity inflation
during the second quarter, we implemented over two percent in
pricing early in the third quarter to improve restaurant margins.
Importantly, our guest satisfaction scores are rising, reflecting
our back to basics operational execution, improved staffing, and
declining team member turnover, that enable us to better serve our
guests.”
Murphy concluded, “Our long-term strategic investments include
multiple growth platforms that will drive consistent and profitable
dine-in and off-premises sales in the years to come. We have now
added Donatos® pizza to more than half our Company restaurants, and
results remain above our original expectations, with sales
performance that exceeded eight percentage points in the second
quarter. Our integrated and seamless digital ecosystem is driving
greater trial, conversion and frequency, as we have increased our
marketing to a broader audience and are making ongoing improvements
to these digital assets. We are also communicating more effectively
through personalized offers with approximately 10.7 million Red
Robin Royalty® members, resulting in record levels of guest
engagement.”
Outlook for 2022 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.
Due to the volatile macroeconomic environment, softening
industry sales trends, and higher commodity costs, the Company is
updating its guidance as follows:
- Pricing in the mid-single digits;
- Mid-double digit commodity cost inflation, versus the previous
guidance of low-double digit inflation;
- Mid-to-high single digit restaurant labor cost inflation;
- Selling, general and administrative costs between $142 and $147
million, versus the previous range of $145 and $155 million;
- Adjusted EBITDA of at least $65 million, versus a previous
range of $80 to $90 million(4); and,
- Capital expenditures of $40 to $45 million, versus a previous
range of $40 to $50 million.
(3)
Comparable restaurant revenue represents
revenue from Company-owned restaurants that have operated five full
quarters as of the end of the period presented.
(4)
The Company has not provided a
reconciliation of its Adjusted EBITDA outlook to the most
comparable GAAP measure of Net loss. Providing Net loss guidance is
potentially misleading and not practical given the difficulty of
projecting event-driven transactional and other non-core operating
items that are included in Net loss, including asset impairments
and income tax valuation adjustments. The reconciliations of
Adjusted EBITDA to Net loss for the historical periods presented
below are indicative of the reconciliations that will be prepared
upon completion of the periods covered by the non-GAAP guidance.
Please refer to the historical period Reconciliation of Net Loss to
EBITDA and Adjusted EBITDA included on Schedule III of this
release.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its
second quarter 2022 results today at 4:30 p.m. ET. The conference
call can be accessed live over the phone by dialing (201)-689-8560.
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 13730828. The replay will be available through
Wednesday, August 17, 2022.
The call will be webcast live from the Company's website at
ir.redrobin.com/news-events/ir-calendar, and later archived.
About 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 520 Red Robin restaurants across the
United States and Canada, including those operating under franchise
agreements. Red Robin… YUMMM®!
Forward-Looking Statements
Forward-looking statements in this press release regarding the
Company's future performance; anticipated uses of capital and
planned investments in growth platforms; continued Guest demand for
dine-in and off-premise offerings; the impact of industry labor and
supply chain challenges and inflationary pressures; statements
under the heading "Outlook for 2022 and Guidance Policy," including
with respect to commodity and labor cost inflation; selling,
general and administrative costs; adjusted EBITDA; capital
expenditures including investment in our restaurants and systems,
new restaurant growth, continued Donatos® expansion; pricing
expectations for 2022; and 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 impact
of COVID-19 and new variants on our results of operations, staffing
levels, supply chain, and liquidity; the effectiveness of the
Company's strategic initiatives, including alternative 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 effectiveness
and timing of the Company's marketing strategies and promotions;
menu changes and pricing strategy; the anticipated sales growth,
costs, and timing of the Donatos® expansion; the implementation,
rollout, and timing of new technology solutions, including
off-premises enhancements; our ability to achieve revenue and cost
savings from off-premises sales and other initiatives; 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 U.S. Securities and
Exchange Commission.
RED ROBIN GOURMET BURGERS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Twelve Weeks Ended
Twenty-eight Weeks
Ended
July 10, 2022
July 11, 2021
July 10, 2022
July 11, 2021
Revenues:
Restaurant revenue
$
288,657
$
272,157
$
669,269
$
590,834
Franchise royalties, fees and other
revenue
5,433
4,818
20,371
12,416
Total revenues
294,090
276,975
689,640
603,250
Costs and expenses:
Restaurant operating costs (exclusive of
depreciation
and amortization shown separately
below):
Cost of sales
72,702
61,917
163,643
131,083
Labor
101,643
98,949
239,751
210,608
Other operating
52,003
46,928
119,867
104,640
Occupancy
22,980
21,614
53,579
51,714
Depreciation and amortization
17,637
19,215
41,556
45,103
General and administrative
18,730
17,718
43,167
39,973
Selling
13,365
10,628
23,308
18,983
Pre-opening costs and acquisition
costs
235
374
297
374
Other charges
8,146
2,196
13,453
7,667
Total costs and expenses
307,441
279,539
698,621
610,145
Loss from operations
(13,351
)
(2,564
)
(8,981
)
(6,895
)
Other expense:
Interest expense, net and other
4,147
2,786
11,560
7,116
Loss before income taxes
(17,498
)
(5,350
)
(20,541
)
(14,011
)
Income tax provision
434
(354
)
496
(302
)
Net loss
$
(17,932
)
$
(4,996
)
$
(21,037
)
$
(13,709
)
Loss per share:
Basic
$
(1.13
)
$
(0.32
)
$
(1.33
)
$
(0.88
)
Diluted
$
(1.13
)
$
(0.32
)
$
(1.33
)
$
(0.88
)
Weighted average shares outstanding:
Basic
15,830
15,665
15,783
15,617
Diluted
15,830
15,665
15,783
15,617
RED ROBIN GOURMET BURGERS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share amounts)
(Unaudited)
July 10, 2022
December 26, 2021
Assets:
Current Assets:
Cash and cash equivalents
$
50,338
$
22,750
Accounts receivable, net
12,578
21,400
Inventories
25,216
25,219
Income tax receivable
681
15,824
Prepaid expenses and other current
assets
14,155
16,963
Restricted cash
8,676
—
Total current assets
111,644
102,156
Property and equipment, net
354,199
386,336
Operating Lease Assets
383,500
400,825
Intangible assets, net
19,848
21,292
Other assets, net
15,188
18,389
Total assets
$
884,379
$
928,998
Liabilities and Stockholders'
Equity:
Current Liabilities:
Accounts payable
$
32,419
$
32,510
Accrued payroll and payroll related
liabilities
33,070
32,584
Unearned revenue
37,832
54,214
Current portion of operating lease
obligations
48,080
48,842
Current portion of long-term debt
2,000
9,692
Accrued liabilities and other
53,161
45,458
Total current liabilities
206,562
223,300
Long-term debt
189,373
167,263
Long-term portion of operating lease
obligations
413,278
435,136
Other non-current liabilities
13,591
26,325
Total liabilities
822,804
852,024
Stockholders' Equity:
Common stock; $0.001 par value: 45,000
shares authorized; 20,449 shares issued; 15,899 and 15,722 shares
outstanding as of July 10, 2022 and December 26, 2021
20
20
Preferred stock, $0.001 par value: 3,000
shares authorized; no shares issued and outstanding as of July 10,
2022 and December 26, 2021
—
—
Treasury stock, 4,550 and 4,727 shares, at
cost as of July 10, 2022 and December 26, 2021
(184,205
)
(192,803
)
Paid-in capital
239,607
242,560
Accumulated other comprehensive income
(loss), net of tax
(6
)
1
Retained earnings
6,159
27,196
Total stockholders' equity
61,575
76,974
Total liabilities and stockholders'
equity
$
884,379
$
928,998
Schedule I
Reconciliation of Non-GAAP Results to GAAP
Results (In thousands, except per share data,
unaudited)
In addition to the results provided in accordance with Generally
Accepted Accounting Principles ("GAAP") throughout this press
release, the Company has provided Adjusted net loss, Adjusted loss
per share - basic, and Adjusted loss per share - diluted, which are
non-GAAP measurements which present the twelve and twenty-eight
weeks ended July 10, 2022 and July 11, 2021 Net loss and basic and
diluted loss per share, excluding the effects of material changes
in accounting estimate, restaurant asset impairment, write-off of
unamortized debt issuance costs, litigation contingencies,
restaurant closure costs, other financing costs, COVID-19 related
costs, board and stockholder matters costs, executive transition
costs, and related income tax effects. The Company believes the
presentation of net loss and loss per share exclusive of the
identified items gives the reader additional insight into the
ongoing operational results of the Company. Management believes
this supplemental information will assist with comparisons of past
and future financial results against the present financial results
presented herein. Income tax effect of reconciling items was
calculated based on the change in the total tax provision
calculation after adjusting for the identified item. The non-GAAP
measurements are intended to supplement the presentation of the
Company’s financial results in accordance with GAAP.
Twelve Weeks Ended
Twenty-eight Weeks
Ended
July 10, 2022
July 11, 2021
July 10, 2022
July 11, 2021
Net loss as reported
(17,932
)
$
(4,996
)
$
(21,037
)
$
(13,709
)
Asset impairment
8,739
$
115
$
10,861
$
1,357
Change in estimate, gift card
breakage(1)
—
—
(5,246
)
—
Restaurant closure costs
930
1,752
1,879
4,199
Write-off of unamortized debt issuance
costs(2)
—
—
1,727
—
Other Financing costs(3)
61
—
370
—
COVID-19 related charges
93
244
300
813
Executive transition
129
—
129
—
Litigation contingencies
(1,806
)
85
(86
)
1,170
Board and stockholder matter costs
—
—
—
128
Income tax expense
(2,118
)
(571
)
(2,583
)
(1,993
)
Adjusted net loss
$
(11,904
)
$
(3,371
)
$
(13,686
)
$
(8,035
)
Basic loss per share:
Net loss as reported
$
(1.13
)
$
(0.32
)
$
(1.33
)
$
(0.88
)
Asset impairment
0.55
0.01
0.69
0.09
Change in estimate, gift card
breakage(1)
—
—
(0.33
)
—
Restaurant closure costs
0.06
0.11
0.12
0.27
Write-off of unamortized debt issuance
costs(2)
—
—
0.11
—
Other financing costs(3)
—
—
0.02
—
COVID-19 related charges
0.01
0.02
0.02
0.05
Executive transition
0.01
—
0.01
—
Litigation contingencies
(0.11
)
—
(0.01
)
0.07
Board and stockholder matter costs
—
—
—
0.01
Income tax expense
(0.14
)
(0.04
)
(0.17
)
(0.13
)
Adjusted loss per share - basic
$
(0.75
)
$
(0.22
)
$
(0.87
)
$
(0.52
)
Diluted loss per share:
Net loss as reported
$
(1.13
)
$
(0.32
)
$
(1.33
)
$
(0.88
)
Asset impairment
0.55
0.01
0.69
0.09
Change in estimate, gift card
breakage(1)
—
—
(0.33
)
—
Restaurant closure costs
0.06
0.11
0.12
0.27
Write-off of unamortized debt issuance
costs(2)
—
—
0.11
—
Other financing costs(3)
—
—
0.02
—
COVID-19 related charges
0.01
0.02
0.02
0.05
Executive transition
0.01
—
0.01
—
Litigation contingencies
(0.11
)
—
(0.01
)
0.07
Board and stockholder matter costs
—
—
—
0.01
Income tax expense
(0.14
)
(0.04
)
(0.17
)
(0.13
)
Adjusted loss per share - diluted
$
(0.75
)
$
(0.22
)
$
(0.87
)
$
(0.52
)
Weighted average shares outstanding
Basic
15,830
15,665
15,783
15,617
Diluted
15,830
15,665
15,783
15,617
(1)
Change in estimate, gift card gift card
breakage revenue, net of commission relates to the Company's
re-evaluation of its estimated redemption pattern. The impact
during the twenty-eight weeks ended July 10, 2022 comprises $5.9
million included in Franchise royalties, fees, and other revenue
partially offset by $0.6 million in gift card commission costs
included in Selling on the Condensed Consolidated Statements of
Operations.
(2)
Write-off of unamortized debt issuance
costs related to the remaining unamortized debt issuance costs
related to our legacy credit agreement with the completion of the
refinancing of our Credit Agreement in the first quarter of fiscal
year 2022.
(3)
Other financing costs includes legal and
other charges related to the refinancing of our Credit Agreement in
the first quarter of fiscal year 2022.
Schedule II
Reconciliation of Non-GAAP Restaurant-Level
Operating Profit to Restaurant revenues, Loss from
Operations and Net Loss (In thousands, unaudited)
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 restaurant
revenue minus restaurant-level operating costs, excluding
restaurant impairment and closure costs. 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 related to restaurant
equipment, buildings, and leasehold improvements. The measure
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
selling, general, and administrative costs, and therefore excludes
costs associated with selling, general, and administrative
functions, and pre-opening costs. The Company excludes restaurant
closure costs as they do not represent a component of the
efficiency of continuing operations. Restaurant impairment costs
are excluded, because, similar to depreciation and amortization,
they represent a non-cash charge for the Company's investment in
its restaurants and not a component of the efficiency of restaurant
operations. 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 loss from operations or net
loss as indicators 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. The table below sets forth certain unaudited information
for the twelve and twenty-eight weeks ended July 10, 2022, and July
11, 2021 expressed as a percentage of total revenues, except for
the components of restaurant-level operating profit that are
expressed as a percentage of restaurant revenue.
Twelve Weeks Ended
Twenty-eight Weeks
Ended
July 10, 2022
July 11, 2021
July 10, 2022
July 11, 2021
Restaurant revenues
$
288,657
98.2
%
$
272,157
98.3
%
$
669,269
97.0
%
$
590,834
97.9
%
Restaurant operating costs(1):
Cost of sales
72,702
25.2
61,917
22.8
163,643
24.5
131,083
22.2
Labor
101,643
35.2
98,949
36.4
239,751
35.8
210,608
35.6
Other operating
52,003
18.0
46,928
17.2
119,867
17.9
104,640
17.7
Occupancy
22,980
8.0
21,614
7.9
53,579
8.0
51,714
8.8
Restaurant-level operating profit
39,329
13.6
%
42,749
15.7
%
92,429
13.8
%
92,789
15.6
%
Add – Franchise royalties, fees, and other
revenue
5,433
1.8
%
4,818
1.7
%
20,371
3.0
%
12,416
2.1
%
Deduct – other operating:
Depreciation and amortization
17,637
6.0
19,215
6.9
41,556
6.0
45,103
7.5
General and administrative expenses
18,730
6.4
17,718
6.4
43,167
6.3
39,973
6.6
Selling
13,365
4.5
10,628
3.8
23,308
3.4
18,983
3.1
Pre-opening & acquisition costs
235
0.1
374
0.1
297
—
374
0.1
Other charges
8,146
2.8
2,196
0.8
13,453
2.0
7,667
1.3
Total other operating
58,112
19.8
%
50,131
18.1
%
121,781
17.7
%
112,100
18.6
%
Loss from operations
(13,351
)
(4.5
)%
(2,564
)
(0.9
)%
(8,981
)
(1.3
)%
(6,895
)
(1.1
)%
Interest expense, net and other
4,147
1.4
2,786
1.0
11,560
1.7
7,116
1.2
Income tax provision
434
0.1
(354
)
(0.1
)
496
0.1
(302
)
(0.1
)
Total other
4,581
1.6
2,432
0.9
12,056
1.7
6,814
1.1
Net loss
$
(17,932
)
(6.1
)%
$
(4,996
)
(1.8
)%
$
(21,037
)
(3.1
)%
$
(13,709
)
(2.3
)%
________________________________________
(1)
Excluding depreciation and amortization,
which is shown separately.
Certain percentage amounts in the table
above do not total due to rounding as well as the fact that
components of restaurant-level operating profit are expressed as a
percentage of restaurant revenue and not total revenues.
Schedule III
Reconciliation of Net Loss to EBITDA and
Adjusted EBITDA (In thousands, unaudited)
The Company defines EBITDA as net loss before interest expense,
income taxes, and depreciation and amortization. EBITDA and
adjusted EBITDA are presented because the Company believes
investors' understanding of its performance is enhanced by
including these non-GAAP financial measures as a reasonable basis
for evaluating its ongoing results of operations excluding the
effects of material change in estimate, asset impairment,
litigation contingencies, board and stockholder matters costs,
restaurant closure and refranchising costs, other financing costs,
COVID-19 related costs and executive transition costs. EBITDA and
adjusted EBITDA are supplemental measures of operating performance
that do not represent and should not be considered as alternatives
to net loss or cash flow from operations, as determined by GAAP,
and the Company's calculation thereof may not be comparable to that
reported by other companies in its industry or otherwise. Adjusted
EBITDA further adjusts EBITDA to reflect the additions and
eliminations shown in the table below. The use of adjusted EBITDA
as a performance measure permits a comparative assessment of our
operating performance relative to the Company's performance based
on its GAAP results, while isolating the effects of some items that
vary from period to period without any correlation to core
operating performance. Adjusted EBITDA as presented may not be
comparable to other similarly-titled measures of other companies,
and the Company's presentation of adjusted EBITDA should not be
construed as an inference that its future results will be
unaffected by excluded or unusual items. The Company has not
provided a reconciliation of its adjusted EBITDA outlook to the
most comparable GAAP measure of Net loss. Providing Net loss
guidance is potentially misleading and not practical given the
difficulty of projecting event-driven transactional and other
non-core operating items that are included in Net loss, including
asset impairments and income tax valuation adjustments. The
reconciliations of adjusted EBITDA to Net loss for the historical
periods presented below are indicative of the reconciliations that
will be prepared upon completion of the periods covered by the
non-GAAP guidance.
Twelve Weeks Ended
Twenty-eight Weeks
Ended
July 10, 2022
July 11, 2021
July 10, 2022
July 11, 2021
Net loss as reported
$
(17,932
)
$
(4,996
)
(21,037
)
(13,709
)
Interest expense, net
3,630
2,912
10,718
7,589
Income tax provision (benefit)
434
(354
)
496
(302
)
Depreciation and amortization
17,637
19,215
41,556
45,103
EBITDA
$
3,769
$
16,777
$
31,733
$
38,681
Asset impairment
$
8,739
$
115
10,861
1,357
Change in accounting estimate, gift card
breakage(1)
—
—
(5,246
)
—
Restaurant closure costs
930
1,752
1,879
4,199
Other financing costs(2)
61
—
370
—
COVID-19 related charges
93
244
300
813
Executive transition
129
—
129
—
Litigation contingencies
(1,806
)
85
(86
)
1,170
Board and shareholder matter costs
—
—
—
128
Adjusted EBITDA
$
11,915
$
18,973
$
39,940
$
46,348
________________________________________
(1)
Change in estimate, gift card gift card
breakage revenue, net of commission relates to the Company's
re-evaluation of its estimated redemption pattern. The impact
during the twenty-eight weeks ended July 10, 2022 comprises $5.9
million included in Franchise royalties, fees, and other revenue
partially offset by $0.6 million in gift card commission costs
included in Selling on the Condensed Consolidated Statements of
Operations.
(2)
Other financing costs includes legal and
other charges related to the refinancing of our Credit Facility in
the first quarter of fiscal year 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220810005727/en/
For media relations questions contact:
Joanna Kaufman, Red Robin Gourmet Burgers, Inc.
jkaufman@redrobin.com (410) 458-2308
For investor relations questions contact:
Raphael Gross, ICR (203) 682-8253
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