Red Robin Gourmet Burgers ( (RRGB) ) has released its Q3 earnings. Here is a breakdown of the information Red Robin Gourmet Burgers presented to its investors.
Red Robin Gourmet Burgers, Inc., a full-service restaurant chain known for its gourmet burgers and casual dining experience, operates over 500 locations across the United States and Canada. The company offers a unique family-friendly atmosphere, serving a variety of food options including burgers, salads, and Donatos® pizza at select locations.
In the fiscal third quarter ending October 6, 2024, Red Robin reported a slight decrease in total revenues to $274.6 million, compared to the same period last year. Despite a challenging macroeconomic environment, the company saw an increase in comparable restaurant sales by 0.6% and continued growth in its revamped loyalty program, which now boasts 14.5 million members.
Key financial highlights include a net loss of $18.9 million for the quarter, a substantial increase from last year’s $8.2 million loss. Adjusted EBITDA also decreased to $2.1 million from $6.8 million last year. For the year to date, total revenues fell by $30.7 million, with a year-to-date net loss reaching $37.8 million compared to $7.5 million the previous year. The company executed a credit agreement amendment to extend financial covenant adjustments and enhance liquidity.
Despite these financial challenges, Red Robin’s management remains optimistic about its future, citing progress in its North Star Plan aimed at revitalizing the brand. CEO G.J. Hart highlighted improvements in guest satisfaction scores and the company’s ability to keep pace with industry traffic trends as positive indicators. The re-launched loyalty program is seen as a significant growth opportunity.
Looking forward, Red Robin aims to achieve total revenue of approximately $1.25 billion for fiscal 2024, with adjusted EBITDA projected between $35 million and $37.5 million. The company is focused on executing its strategic plan to drive sustainable long-term growth and enhance its market position in the casual dining industry.
