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 third quarter ended October 2, 2022.
Results for the third quarter, as compared to the prior year
as applicable, included the following:
- Restaurant revenue of $282.4 million increased 4.5% compared to
2021;
- Tenth consecutive quarter of sustained off-premises sales
dollars of more than double pre-pandemic levels;
- Red Robin Royalty® membership now exceeding 11 million, an
increase of 0.4 million;
- Comparable restaurant revenue increased 5.3% and 5.9% compared
to 2021 and 2019, respectively;
- Continued acceleration of comparable restaurant revenue
outperformance at restaurants with Donatos®, now offered at over
half of our Company locations, with comparable restaurant revenue
growth compared to 2019 of 9.8% versus comparable restaurant
revenue growth compared to 2019 for restaurants without Donatos® of
(0.3)%;
- Net loss of 12.6 million decreased $2.4 million compared to
2021;
- Restaurant level operating profit margin increased by 10 basis
points driven primarily by sales leverage, partially offset by
commodity and wage rate inflation; and
- Adjusted EBITDA(1) (a non-GAAP metric) of $4.0 million
decreased $4.3 million compared to 2021.
G.J. Hart, Red Robin’s President and Chief Executive Officer,
“While operating costs were higher than expected, we once again
outpaced the category in comparable restaurant sales and traffic as
measured by Black Box Intelligence, and net value sentiment on
social media channels. Our topline outperformance was driven by our
barbell strategy, anchored by our popular Steakhouse Summer limited
time product offers. Stabilized staffing and lower turnover have
resulted in improved guest satisfaction scores. Finally, our
targeted digital marketing is driving profitable traffic and we hit
a new high mark for engagement among our more than 11 million Red
Robin Royalty® members.”
Hart concluded, “Since starting as CEO eight weeks ago, my
excitement about the exceptional potential of Red Robin has only
grown. While steady progress has been made in a difficult
environment, my immediate focus is on accelerating the delivery of
an extraordinary Red Robin restaurant experience, fulfilling our
brand promise. We are moving with purpose to improve key aspects of
the restaurant experience and being more relevant to our guests.
Priorities include strengthening the restaurant management
structure and service model, improving food quality to ensure we
serve the very best gourmet burgers and American favorites, and
elevating our dine-in atmosphere, creating a fun and playful
environment where guests can connect with friends and family.
Finally, we are committed to prudent cost management and capital
allocation that includes refreshing our restaurants which will
provide long-term shareholder value.”
Third Quarter 2022 Financial Summary Compared to 2021
The following table presents financial results for the fiscal
third quarter of 2022, compared to results from the same period in
2021:
Twelve Weeks Ended
October 2, 2022
October 3, 2021
Total revenues (millions)
$
286.9
$
275.4
Restaurant revenues (millions)
282.4
270.2
Net loss (millions)
(12.6
)
(15.0
)
Restaurant Level Operating Profit
(millions)(2)
$
35.6
$
33.8
Restaurant Level Operating Profit
Margin(2)
12.6
%
12.5
%
Adjusted EBITDA (millions)(1)
$
4.0
$
8.3
Loss per diluted share ($ per share)
$
(0.79
)
$
(0.95
)
Adjusted loss per diluted share ($ per
share)(2)
$
(1.03
)
$
(0.88
)
(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.
Third Quarter 2022 Operating Results
Comparable restaurant revenue(3) increased 5.3% in the third
quarter of 2022 compared to the same period a year ago, driven by a
9.0% increase in average Guest check and a 3.7% decrease in Guest
count. The increase in average Guest check resulted from a 2.5%
increase in menu mix, primarily driven by our limited time menu
offerings and higher dine-in sales volumes, a 7.7% increase in
pricing, and a 1.2% decrease from higher discounts.
Net loss improved compared to 2021 primarily due to a $9.2
million gain on the sale of a restaurant property and a $12.2
million increase in restaurant revenue, partially offset by higher
commodity and wage rate inflation, higher marketing and interest
expenses, and leadership conference costs. Adjusted EBITDA(1)
declined due to higher commodity and wage inflation, higher
marketing expenses, and leadership conference costs, partially
offset by higher restaurant revenue.
(3)
Comparable restaurant revenue represents
revenue from Company owned restaurants that have operated five full
quarters as of the end of the period presented.
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 higher commodity and operating costs, and strategic
investments, the Company is updating its guidance as follows:
- Pricing in the mid-single digits;
- Mid-double digit commodity cost inflation;
- Mid-to-high single digit restaurant labor cost inflation;
- Selling, general and administrative costs of $138 to $142
million;
- Capital expenditures of $43 to $48 million; and
- Adjusted EBITDA of $53 to $58 million(4).
(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
third quarter 2022 results today at 5:00 p.m. ET. The conference
call can be accessed live over the phone by dialing (631)-891-4304.
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 10020411. The replay will be available through
Wednesday, November 9, 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
Forty Weeks Ended
October 2, 2022
October 3, 2021
October 2, 2022
October 3, 2021
Revenues:
Restaurant revenue
$
282,449
$
270,202
$
951,718
$
861,036
Franchise and other revenues
4,439
5,242
24,810
17,658
Total revenues
286,888
275,444
976,528
878,694
Costs and expenses:
Restaurant operating costs (excluding
depreciation and amortization shown separately below):
Cost of sales
70,640
62,671
234,283
193,754
Labor
100,522
99,725
340,273
310,333
Other operating
52,858
51,462
172,725
156,102
Occupancy
22,828
22,519
76,406
74,233
Depreciation and amortization
17,368
18,881
58,924
63,984
General and administrative
21,498
17,691
64,665
57,664
Selling
14,194
12,652
37,503
31,635
Pre-opening costs
217
418
514
792
Other charges (gains), net
(5,217
)
1,561
8,236
9,228
Total costs and expenses
294,908
287,580
993,529
897,725
Loss from operations
(8,020
)
(12,136
)
(17,001
)
(19,031
)
Other expense:
Interest expense, net and other
4,590
2,870
16,151
9,986
Loss before income taxes
(12,610
)
(15,006
)
(33,152
)
(29,017
)
Income tax provision (benefit)
(43
)
(26
)
453
(328
)
Net loss
$
(12,567
)
$
(14,980
)
$
(33,605
)
$
(28,689
)
Loss per share:
Basic
$
(0.79
)
$
(0.95
)
$
(2.12
)
$
(1.83
)
Diluted
$
(0.79
)
$
(0.95
)
$
(2.12
)
$
(1.83
)
Weighted average shares outstanding:
Basic
15,892
15,709
15,816
15,647
Diluted
15,892
15,709
15,816
15,647
RED ROBIN GOURMET BURGERS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share amounts)
(Unaudited)
October 2, 2022
December 26, 2021
Assets:
Current assets:
Cash and cash equivalents
$
50,040
$
22,750
Accounts receivable, net
11,915
21,400
Inventories
25,212
25,219
Income tax receivable
754
15,824
Prepaid expenses and other current
assets
13,044
16,963
Restricted cash
8,090
—
Total current assets
109,055
102,156
Property and equipment, net
342,386
386,336
Operating lease assets, net
375,747
400,825
Intangible assets, net
19,320
21,292
Other assets, net
14,434
18,389
Total assets
$
860,942
$
928,998
Liabilities and stockholders'
equity:
Current liabilities:
Accounts payable
$
33,814
$
32,510
Accrued payroll and payroll-related
liabilities
34,040
32,584
Unearned revenue
37,539
54,214
Current portion of operating lease
obligations
47,726
48,842
Current portion of long-term debt
2,000
9,692
Accrued liabilities and other
50,482
45,458
Total current liabilities
205,601
223,300
Long-term debt
189,320
167,263
Long-term portion of operating lease
obligations
401,274
435,136
Other non-current liabilities
13,120
26,325
Total liabilities
809,315
852,024
Stockholders' equity:
Common stock; $0.001 par value: 45,000
shares authorized; 20,449 shares issued; 15,900 and 15,722 shares
outstanding as of October 2, 2022 and December 26, 2021
20
20
Preferred stock, $0.001 par value: 3,000
shares authorized; no shares issued and outstanding as of October
2, 2022 and December 26, 2021
—
—
Treasury stock 4,549 and 4,727 shares, at
cost, as of October 2, 2022 and December 26, 2021
(184,169
)
(192,803
)
Paid-in capital
242,235
242,560
Accumulated other comprehensive income
(loss), net of tax
(51
)
1
Retained earnings (deficit)
(6,408
)
27,196
Total stockholders' equity
51,627
76,974
Total liabilities and stockholders'
equity
$
860,942
$
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 and Adjusted
loss per share - diluted, which are non-GAAP measurements which
present the twelve and forty weeks ended October 2, 2022 and
October 3, 2021 Net loss 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
Forty Weeks Ended
October 2, 2022
October 3, 2021
October 2, 2022
October 3, 2021
Net loss as reported
$
(12,567
)
$
(14,980
)
$
(33,605
)
$
(28,689
)
Asset impairment
2,187
—
13,048
1,357
Gain on sale of restaurant property
(9,204
)
—
(9,204
)
—
Change in estimate, gift card
breakage(1)
—
—
(5,246
)
—
Executive transition
1,825
—
1,954
—
Write-off of unamortized debt issuance
costs(2)
—
—
1,727
—
Other financing costs(3)
1,022
—
1,392
—
Income tax expense
1,356
(406
)
(1,226
)
(2,399
)
COVID-19 related charges
123
299
423
1,112
Restaurant closure costs (gains)
(1,570
)
1,102
309
5,301
Closed corporate office, net of sublease
income
267
—
267
—
Litigation contingencies
133
160
47
1,330
Board and stockholder matter costs
—
—
—
128
Adjusted net loss
$
(16,428
)
$
(13,825
)
$
(30,114
)
$
(21,860
)
Diluted loss per share:
Net loss as reported
$
(0.79
)
$
(0.95
)
$
(2.12
)
$
(1.83
)
Asset impairment
0.14
—
0.82
0.09
Gain on sale of restaurant property
(0.58
)
—
(0.58
)
—
Change in estimate, gift card
breakage(1)
—
—
(0.33
)
—
Executive transition
0.11
—
0.12
—
Write-off of unamortized debt issuance
costs(2)
—
—
0.11
—
Other financing costs(3)
0.06
—
0.09
—
Income tax expense
0.09
(0.03
)
(0.08
)
(0.16
)
COVID-19 related charges
0.01
0.02
0.03
0.07
Restaurant closure costs (gains)
(0.10
)
0.07
0.02
0.34
Closed corporate office, net of sublease
income
0.02
—
0.02
—
Litigation contingencies
0.01
0.01
—
0.08
Board and stockholder matter costs
—
—
—
0.01
Adjusted loss per share - diluted
$
(1.03
)
$
(0.88
)
$
(1.90
)
$
(1.40
)
Weighted average shares outstanding:
Basic
15,892
15,709
15,816
15,647
Diluted
15,892
15,709
15,816
15,647
(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 forty weeks ended October 2, 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 forty weeks ended October 2, 2022, and October
3, 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
Forty Weeks Ended
October 2, 2022
October 3, 2021
October 2, 2022
October 3, 2021
Restaurant revenue
$282,449
98.5%
$270,202
98.1%
$951,718
97.5%
$861,036
98.0%
Restaurant operating costs(1):
Cost of sales
70,640
25.0
62,671
23.2
234,283
24.6
193,754
22.5
Labor
100,522
35.6
99,725
36.9
340,273
35.8
310,333
36.0
Other operating
52,858
18.7
51,462
19.0
172,725
18.1
156,102
18.1
Occupancy
22,828
8.1
22,519
8.3
76,406
8.0
74,233
8.6
Restaurant-level operating profit
35,601
12.6%
33,825
12.5%
128,031
13.5%
126,614
14.7%
Add – Franchise and other revenues
4,439
1.5%
5,242
1.9%
24,810
2.5%
17,658
2.0%
Deduct – other operating:
Depreciation and amortization
17,368
6.1
18,881
6.9
58,924
6.0
63,984
7.3
General and administrative expenses
21,498
7.5
17,691
6.4
64,665
6.6
57,664
6.6
Selling
14,194
4.9
12,652
4.6
37,503
3.8
31,635
3.6
Pre-opening costs
217
0.1
418
0.2
514
0.1
792
0.1
Other charges (gains), net
(5,217)
(1.8)
1,561
0.6
8,236
0.8
9,228
1.1
Total other operating
48,060
16.8%
51,203
18.6%
169,842
17.4%
163,303
18.6%
Loss from operations
(8,020)
(2.8)%
(12,136)
(4.4)%
(17,001)
(1.7)%
(19,031)
(2.2)%
Interest expense, net and other
4,590
1.6
2,870
1.0
16,151
1.7
9,986
1.1
Income tax provision (benefit)
(43)
—
(26)
—
453
—
(328)
—
Total other
4,547
1.6
2,844
1.0
16,604
1.7
9,658
1.1
Net loss
$(12,567)
(4.4)%
$(14,980)
(5.4)%
$(33,605)
(3.4)%
$(28,689)
(3.3)%
(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
Forty Weeks Ended
October 2, 2022
October 3, 2021
October 2, 2022
October 3, 2021
Net loss as reported
$
(12,567
)
$
(14,980
)
$
(33,605
)
$
(28,689
)
Interest expense, net
4,419
2,846
15,137
10,435
Income tax provision (benefit)
(43
)
(26
)
453
(328
)
Depreciation and amortization
17,368
18,881
58,924
63,984
EBITDA
9,177
6,721
40,909
45,402
Asset impairment
2,187
—
13,048
1,357
Gain on sale of restaurant property
(9,204
)
—
(9,204
)
—
Change in accounting estimate, gift card
breakage(1)
—
—
(5,246
)
—
Executive transition
1,825
—
1,954
—
Other financing costs(2)
1,022
—
1,392
—
COVID-19 related charges
123
299
423
1,112
Restaurant closure costs (gains)
(1,570
)
1,102
309
5,301
Closed corporate office, net of sublease
income
267
—
267
—
Litigation contingencies
133
160
47
1,330
Board and stockholder matter costs
—
—
—
128
Adjusted EBITDA
$
3,960
$
8,282
$
43,899
$
54,630
(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 forty weeks ended October 2, 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/20221102006035/en/
For media relations questions: Joanna Kaufman, Red Robin
Gourmet Burgers, Inc. jkaufman@redrobin.com (410) 458-2308
For investor relations questions: Raphael Gross, ICR
(203) 682-8253
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