Q1 2024 Red Robin Gourmet Burgers Inc Earnings Call Transcript
Key Points
- Red Robin Gourmet Burgers Inc (RRGB) reported positive comparable restaurant sales in the first five weeks of the second quarter, despite a headwind from the removal of virtual brands.
- The company has seen significant improvements in guest satisfaction scores, with overall satisfaction now in line with the industry average.
- The revamped Red Robin Royalty program has shown promising early results, with new members visiting more frequently.
- The company has made substantial progress on its North Star Five Point Plan, including operational improvements and cost savings.
- Marketing initiatives, including the 'Leave Room for Fun' campaign, have shown positive early results, with increased brand perception and intent to visit.
- Total revenues for the first quarter decreased by $29.3 million compared to the same period last year, primarily due to a 6.5% decline in comparable restaurant revenue.
- Restaurant-level operating profit as a percentage of restaurant revenue decreased by 370 basis points, driven by strategic investments in labor and food quality.
- Inflationary pressures are expected to continue, with anticipated inflation across all cost categories in the range of 3% to 4% for 2024.
- The elimination of virtual brand offerings has resulted in a 200 to 250 basis point sales headwind.
- General and administrative costs and selling expenses have increased, reflecting investments in marketing and community partnership events.
Good afternoon, everyone, and welcome to the Red Robin Gourmet Burgers, Inc. First Quarter 2024 earnings call. This conference is being recorded during management's presentation and in response to your questions, they will be making forward-looking statements about the Company's business outlook and expectations. These forward-looking statements and all other statements that are not historical facts reflect management's beliefs and predictions as of today and therefore are subject to risks and uncertainties as described in the Company's SEC filings.
Management will also discuss non-GAAP financial measures as part of today's conference. These non-GAAP measures are not prepared in accordance with generally accepted accounting principle. What are intended to illustrate alternative measures of the Company's operating performance that may be used. Reconciliations of the non-GAAP financial measures to the most direct comparable GAAP measures can be found in the earnings release. The company has posted its first quarter 2024 earnings release on its website at ir dot Red Robin.
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