Reports Preliminary Revenue Results for the
Fourth Quarter Ended December 25, 2022
Announces Evaluation of Sale-Leaseback
Transaction
Hosting Fireside Chat at the 25th Annual ICR
Conference at 10:00 AM Eastern Time Today; Participating at the
Jefferies 12th Annual Winter Restaurant, Foodservice, Gaming,
Lodging & Leisure Summit on January 23-24
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 and American
favorites in a family-friendly atmosphere, today released its
“North Star” five-point plan to drive long-term shareholder value.
The Company also reported preliminary, unaudited revenue results
for the fourth quarter ended December 25, 2022 and announced it is
evaluating a Sale-Leaseback transaction.
G.J. Hart, Red Robin’s President and Chief Executive Officer
said, “We are excited to release our ‘North Star’ five-point plan,
designed to drive long-term shareholder value and enhance Red
Robin’s competitive positioning. With our menu of gourmet burgers
and American favorites, attractive atmosphere, and playful
environment that connects friends and family, the brand not only
carries great memories for our most loyal guests but also appeals
to a broad demographic. While the business has faced challenges in
recent years due to the impact of COVID and at times execution that
has not met our standards, we are committed to taking bold action
through new executive leadership to deliver long term sustainable
growth. We are thankful to have an excellent team of dedicated
General Managers and team members and are committed to providing
them with the resources necessary to ensure a great experience for
guests and strong business results for their restaurants. We have
identified multiple levers to build sales and increase
profitability and are now moving to aggressive implementation to
drive our success in 2023 and beyond.”
The “North Star” Five-Point Plan Consists of the
Following:
Transform to an operations focused restaurant company:
- Empower decision making by Operators at the unit level
- Incent and reward Operators to drive business growth and
results
- Restructured support organization
Elevate the guest experience:
- Invest in People, food quality, and the restaurant
facility
- New cooking platform to fully deliver on our commitment of
Gourmet Burgers
- Menu refresh adding variety of both offerings and price
points
Remove costs and complexity:
- Optimize the supply chain to reduce costs and ensure consistent
delivery of high-quality product
- Evaluate vendors for need, performance, and competitive
costs
- Implement ongoing process to reduce costs through actions that
uphold our commitment to a great guest experience
Optimize guest engagement:
- Engage with and support the local communities in which we
operate
- Enhance the off-premise experience
- Further build and engage with guests through Red Robin Royalty®
loyalty program
Drive growth in comparable restaurant revenue & unit level
profitability, and deliver financial commitments:
- Regain credibility with the investment community
- Drive performance in the existing base of restaurants, earning
the right to resume new unit growth
- Deliver financial guidance commitments
Hart continued, “The North Star initiatives will guide our
efforts over the next 3 years, and we believe present an
opportunity to more than double Adjusted EBITDA margin. In
conjunction with our announcement to evaluate a Sale-Leaseback
transaction, we are committed to building a successful and
sustainable business, and creating value for shareholders.”
Preliminary Revenue Results for the Fourth Quarter, as
Compared to the Prior Year as Applicable, Included the
Following:
- Total revenue of approximately $290.2 million increased 2.4%
compared to the fourth quarter of 2021
- Red Robin Royalty® membership is approximately 11.3 million
members, an increase of approximately 0.3 million
- Comparable restaurant revenue(1) increased 2.5% compared to the
fourth quarter of 2021
- This is the 8th consecutive quarter of positive comparable
restaurant revenue(1) growth.
- Comparable restaurant revenue(1) in the fourth quarter of 2022
includes a benefit of approximately $2.8 million due to the
Company's assessment of breakage related to its Red Robin Royalty®
program. Excluding this benefit, comparable restaurant revenue(1)
would have increased 1.5% compared to the fourth quarter of
2021.
- Comparable restaurant revenue(1) at restaurants with Donatos®
outperformed restaurants without Donatos® by 6.2% in the fourth
quarter of 2022 as compared to 2019. 247 restaurants offer Donatos®
as of the end of fiscal 2022.
The above results are preliminary and subject to year-end
closing adjustments.
Hart concluded, “The continued growth in comparable restaurant
revenue demonstrates our brand strength and provides a strong
foundation to support revenue and Adjusted EBITDA growth in
2023.”
Evaluation of Sale-Leaseback Transaction
Red Robin also announced it is evaluating a Sale-Leaseback
transaction related to up to 35 owned properties. The Company has
engaged CBRE Group to lead the process and anticipates the proceeds
will be used to repay debt, fund capital investments, and
repurchase shares of company stock, subject to the terms of the
Company's Credit Agreement and approval by the Board of Directors.
Red Robin expects the evaluation process to be complete in the
first quarter of 2023 and if pursued, a transaction to be finalized
in the first or second quarter of 2023.
ICR Conference and Jefferies Summit Participation
Red Robin is hosting a fireside chat at the 25th Annual ICR
Investor Conference at the JW Marriott Orlando Grande Lakes today
at 10:00 AM Eastern Time. The Company will also be participating in
a pre-recorded fireside chat at the Jefferies 12th Annual Winter
Restaurant, Foodservice, Gaming, Lodging & Leisure Summit,
which will be available for on-demand viewing beginning on January
21, 2023. These webcasts will be available from the Company's
website at ir.redrobin.com/news-events/ir-calendar. Red Robin will
be meeting with institutional investors at both conferences –
January 9-10, 2023 and January 23-24, 2023, respectively.
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 regarding the Company's future
performance; “North Star” strategic plan; preliminary results
including revenue; Adjusted EBITDA projections; potential
Sale-Leaseback transactions, timing and anticipated uses of
proceeds including potential share repurchase; capital expenditures
including investment in our restaurants and systems, new restaurant
growth; pricing expectations; 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
effectiveness of the Company's strategic initiatives, including
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
impact of COVID-19 and new variants on our results of operations,
staffing levels, supply chain, and liquidity; the effectiveness and
timing of the Company's marketing strategies and promotions; menu
changes and pricing strategy; the implementation, rollout, and
timing of technology solutions; our ability to achieve revenue and
cost savings; 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.
(1)
Comparable restaurant revenue represents
revenue from Company-owned restaurants that have operated five full
quarters as of the end of the period presented.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230109005309/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
investor@redrobin.com (203) 682-8253
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