Q2 2024 Red Robin Gourmet Burgers Inc Earnings Call Transcript
Key Points
- Guest satisfaction scores have increased to levels not seen since 2016.
- Comparable restaurant revenue exceeded the industry average as measured by Black Box Intelligence.
- Significant improvements in order accuracy, taste of food, and friendliness of staff in the off-premise business.
- The revamped Red Robin Royalty program has seen a 156% increase in sign-ups compared to the same timeframe in 2023.
- Overall guest satisfaction has reached parity with the casual dining industry for the first time in almost nine years.
- Total revenues for the second quarter were only marginally higher than the same period last year ($300.2 million vs. $298.6 million).
- Comparable restaurant revenue decreased by 0.8% when excluding the benefit from the loyalty program.
- Restaurant-level operating profit as a percentage of restaurant revenue decreased by 80 basis points compared to the second quarter of 2023.
- Higher-than-expected inflation in commodities, particularly ground beef, chicken, and produce.
- Labor costs are elevated due to newer leaders and team members building mastery and efficiency in their roles.
Good afternoon, everyone, and welcome to the Red Robin Gourmet Burgers, Incorporated second-quarter 2024 earnings call. This conference is being recorded. During management's presentation and in response to your questions, we 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 a part of today's conference call. These non-GAAP measures are not prepared in accordance with Generally Accepted Accounting Principles but are intended to illustrate alternative measures of the company's operating performance that may be useful. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in the earnings release. The company has posted its second-quarter 2024 earnings release on its website at ir.redrobin.com.
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