In This Article:
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Total Revenue: $274.6 million, down from $277.6 million in Q3 2023.
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Comparable Restaurant Revenue: Increased by 0.6%.
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Restaurant Level Operating Profit: 9% of restaurant revenue, a decrease of 210 basis points from Q3 2023.
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Adjusted EBITDA: $2.1 million, a decline of $4.7 million from Q3 2023.
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Cash and Cash Equivalents: $22 million at the end of the third quarter.
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Outstanding Principal Balance: $187.9 million under the credit agreement.
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Guidance for 2024: Total revenue of approximately $1.25 billion and adjusted EBITDA of $35 million to $37.5 million.
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Capital Expenditures: Expected to be approximately $25 million for 2024.
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Store Closures: Closure of nine restaurants over the past year.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) reported a comparable restaurant revenue increase of 0.6%, exceeding the industry average.
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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.
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Marketing strategies, including dynamic digital and social media, have effectively driven traffic to Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) restaurants.
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The company has made substantial improvements in guest satisfaction scores, which are now above the industry average.
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Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) has implemented cost-saving measures in the supply chain and operations, contributing to improved financial performance.
Negative Points
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Total revenues for the third quarter decreased to $274.6 million from $277.6 million in the previous year, primarily due to restaurant closures.
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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.
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Approximately 70 restaurants are not generating positive restaurant-level profitability, creating a drag on overall company performance.
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The company anticipates a net cost in the near term due to promotional offers, impacting short-term profitability.
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Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) faces challenges from inflation and a competitive environment, which have affected consumer spending and traffic.
Q & A Highlights
Q: Is the Cheeseburger Day triple play promotion expanding to other days, and is this part of the incremental discounting factored into the guidance? A: Yes, the Cheeseburger Day triple play promotion is expanding to Monday and Wednesday, stacking on top of existing promotions like Monster Mondays and Kids Days on Wednesdays. This is part of the incremental discounting factored into the guidance. (G.J. Hart, CEO)