On May 29, 2024, Red Robin Gourmet Burgers Inc (RRGB, Financial) released its 8-K filing for the fiscal first quarter ended April 21, 2024. Red Robin Gourmet Burgers Inc is a restaurant operator that develops, operates, and franchises casual-dining and fast-casual restaurants in North America. The company's brands include Red Robin, Red Robin Gourmet Burgers, Red Robin America's Gourmet Burgers and Spirits, Red Robin Burger Works, YUMMM, Red Robin Gourmet Burgers and Brews, and Red Robin Royalty names and logos.
Performance Overview
Red Robin Gourmet Burgers Inc (RRGB, Financial) reported total revenues of $388.5 million for the first quarter of fiscal 2024, a decrease of $29.3 million compared to the same period last year. This figure fell short of the analyst estimate of $392.73 million. The company also reported a net loss of $9.5 million, widening from a net loss of $3.3 million in the first quarter of fiscal 2023. The adjusted EBITDA for the quarter was $12.2 million, down from $35.9 million in the previous year.
Key Financial Metrics
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Total Revenues | $388.5 million | $417.8 million |
| Net Loss | $(9.5) million | $(3.3) million |
| Adjusted EBITDA | $12.2 million | $35.9 million |
| Net Loss per Diluted Share | $(0.61) | $(0.20) |
Challenges and Achievements
The company faced several challenges during the quarter, including a 6.5% decrease in comparable restaurant revenue and a 9.4% decline in guest traffic. Despite these setbacks, Red Robin Gourmet Burgers Inc (RRGB, Financial) managed to repay approximately $21.2 million of debt and completed a sale-leaseback transaction for ten restaurants, generating net proceeds of approximately $23.4 million.
"Almost 18 months ago, we launched our North Star Five-Point plan grounded in a commitment to a great guest experience through investments in service and food quality. We expect the investment to deliver gains in sales and profits, and drive long-term shareholder value," said G.J. Hart, Red Robin’s President and Chief Executive Officer.
Income Statement Highlights
Red Robin Gourmet Burgers Inc (RRGB, Financial) reported restaurant revenues of $378.6 million, down from $406.9 million in the same period last year. The company's restaurant-level operating profit margin decreased to 11.0% from 14.7% in the previous year. The cost of sales was $90.2 million, and labor costs were $149.0 million, both showing a slight decrease compared to the previous year.
Balance Sheet and Liquidity
As of April 21, 2024, Red Robin Gourmet Burgers Inc (RRGB, Financial) had outstanding borrowings under its credit facility of $167.9 million and liquidity of approximately $55.6 million, including cash and cash equivalents and available borrowing capacity under its credit facility. The company also reported total assets of $717.1 million and total liabilities of $746.2 million.
Outlook and Guidance
Looking ahead, Red Robin Gourmet Burgers Inc (RRGB, Financial) reiterated its fiscal 2024 guidance, expecting total revenue between $1.250 billion and $1.275 billion, with a low single-digit percentage decline in comparable restaurant revenue. The company also anticipates a restaurant-level operating profit margin of 12.5% to 13.5% and adjusted EBITDA between $60 million and $70 million.
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Explore the complete 8-K earnings release (here) from Red Robin Gourmet Burgers Inc for further details.
