Q3 2024 Red Robin Gourmet Burgers Inc Earnings Call Transcript
Key Points
- Red Robin Gourmet Burgers Inc (RRGB) reported a comparable restaurant revenue increase of 0.6%, exceeding the industry average.
- The company's Loyalty 2.0 program has been successful, with a significant increase in new member sign-ups and higher spending by loyalty members.
- Marketing strategies, including dynamic digital and social media, have effectively driven traffic to Red Robin Gourmet Burgers Inc (RRGB) restaurants.
- The company has made substantial improvements in guest satisfaction scores, which are now above the industry average.
- Red Robin Gourmet Burgers Inc (RRGB) has implemented cost-saving measures in the supply chain and operations, contributing to improved financial performance.
- Total revenues for the third quarter decreased to $274.6 million from $277.6 million in the previous year, primarily due to restaurant closures.
- Restaurant level operating profit decreased by 210 basis points compared to the third quarter of 2023, due to lower guest counts and increased discount levels.
- Approximately 70 restaurants are not generating positive restaurant-level profitability, creating a drag on overall company performance.
- The company anticipates a net cost in the near term due to promotional offers, impacting short-term profitability.
- Red Robin Gourmet Burgers Inc (RRGB) faces challenges from inflation and a competitive environment, which have affected consumer spending and traffic.
Good afternoon, everyone and Welcome to the Red Robin Gourmet Burgers Incorporated third 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 call.
These non-GAAP measures are not prepared in accordance with the 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 mostly directly comparable GAAP measures can be found in the earnings release. The company has posted its third quarter 2024 earnings release on its website at ir
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