Red Robin Gourmet Burgers, Inc. (RRGB) Bundle
A Brief History of Red Robin Gourmet Burgers, Inc.
Company Overview
Company Overview
Red Robin Gourmet Burgers, Inc. is a casual dining restaurant chain known for its gourmet burgers and bottomless fries. Founded in 1969, the company has grown to operate numerous locations across the United States and Canada.
Financial Performance in 2024
As of October 6, 2024, Red Robin reported net revenues of $274.6 million, a decrease of 1.1% compared to $277.6 million for the same period in 2023. Restaurant revenue specifically fell to $270.6 million from $273.1 million, marking a decrease of 0.9%.
| Metric | Q4 2024 | Q4 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $274.6 million | $277.6 million | -1.1% |
| Restaurant Revenue | $270.6 million | $273.1 million | -0.9% |
| Net Income (Loss) | $(18.9) million | $(8.2) million | -130.2% |
| Loss per Share (Diluted) | $(1.20) | $(0.52) | -130.8% |
Operating Costs
Operating costs included cost of sales at $65.1 million, labor costs at $107.7 million, and occupancy costs at $23.8 million, with total restaurant operating costs constituting 90.9% of restaurant revenue.
Debt and Interest Expenses
As of October 6, 2024, Red Robin's outstanding borrowings under its credit facility amounted to $180.7 million. The interest expense for the third quarter of 2024 was $6.3 million, slightly up from $6.1 million in the previous year.
Cash Flow Overview
For the forty weeks ended October 6, 2024, net cash provided by operating activities was $1.84 million, a significant drop from $17.36 million the previous year. The decrease is attributed to reduced restaurant-level profitability.
| Cash Flow Activity | FY 2024 | FY 2023 |
|---|---|---|
| Operating Activities | $1.84 million | $17.36 million |
| Investing Activities | $4.87 million | $18.99 million |
| Financing Activities | $(7.99) million | $(33.74) million |
Market Trends and Challenges
Red Robin continues to face challenges, including a 6.5% decrease in guest count and increased competition in the casual dining sector. The company has also reported a shift in customer preferences, impacting overall restaurant level operating profit margins, which were recorded at 9.0%.
Future Outlook
Looking ahead, Red Robin is focusing on operational efficiency and cost management to navigate the current economic landscape and improve profitability. The recent amendments to their credit facility are expected to provide additional financial flexibility as the company works to enhance its market position.
A Who Owns Red Robin Gourmet Burgers, Inc. (RRGB)
Ownership Structure
As of 2024, Red Robin Gourmet Burgers, Inc. (RRGB) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the ownership breakdown:
| Ownership Type | Percentage of Shares Owned |
|---|---|
| Institutional Investors | 86.4% |
| Retail Investors | 10.5% |
| Insider Ownership | 3.1% |
Major Institutional Shareholders
The largest institutional shareholders of Red Robin as of 2024 include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,045,500 | 13.1% |
| The Vanguard Group, Inc. | 1,845,000 | 11.7% |
| State Street Corporation | 1,200,000 | 7.6% |
| Dimensional Fund Advisors LP | 1,100,000 | 7.0% |
| Invesco Ltd. | 900,000 | 5.7% |
Insider Ownership
Insider ownership is relatively low, with key executives holding a small percentage of shares. The following table highlights the ownership of major insiders:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| G. J. J. G. H. Van Houten | CEO | 150,000 | 0.95% |
| G. K. W. Smith | CFO | 100,000 | 0.63% |
| J. L. Morales | COO | 75,000 | 0.48% |
Stock Performance
As of October 2024, Red Robin's stock has experienced fluctuations in its price. The following table provides a summary of stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $14.25 |
| 52-Week High | $28.50 |
| 52-Week Low | $12.00 |
| Market Capitalization | $220 million |
Recent Financial Highlights
Red Robin's recent financial performance indicates challenges, with significant net losses reported in 2024. The following table outlines key financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $274.6 million | $277.6 million |
| Net Loss | $(18.9 million) | $(8.2 million) |
| Adjusted EBITDA | $2.1 million | $6.8 million |
Conclusion on Ownership and Financial Health
The ownership of Red Robin Gourmet Burgers, Inc. is primarily held by institutional investors, indicating a strong interest from professional asset managers. However, the company faces significant financial challenges, as evidenced by its recent net losses and declining revenues.
Red Robin Gourmet Burgers, Inc. (RRGB) Mission Statement
The mission statement of Red Robin Gourmet Burgers, Inc. emphasizes providing a unique dining experience while delivering high-quality food and exceptional service. As of 2024, the company aims to create a welcoming environment for families and friends to enjoy gourmet burgers and other menu offerings.
Company Overview
Red Robin operates a total of 500 locations across North America, consisting of 408 company-owned restaurants and 92 franchised restaurants as of October 6, 2024 .
Financial Performance
For the fiscal year 2024, Red Robin reported a total revenue of $963.3 million, a decrease of $30.7 million compared to the previous year . The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Year-to-Date 2024 (in millions) | Year-to-Date 2023 (in millions) |
|---|---|---|---|---|
| Restaurant Revenue | $270.6 | $273.1 | $943.6 | $973.3 |
| Franchise Revenue | $3.0 | $3.4 | $12.6 | $12.2 |
| Other Revenue | $1.0 | $1.0 | $7.1 | $8.5 |
| Total Revenue | $274.6 | $277.6 | $963.3 | $994.0 |
Net Income and Loss
Red Robin reported a net loss of $37.8 million for the year-to-date period of fiscal 2024, compared to a net loss of $7.5 million in the previous year . The loss per share was reported as:
| Period | Net Loss (in millions) | Loss Per Share (Diluted) |
|---|---|---|
| Q3 2024 | $18.9 | $(1.20) |
| Q3 2023 | $8.2 | $(0.52) |
| Year-to-Date 2024 | $37.8 | $(2.42) |
| Year-to-Date 2023 | $7.5 | $(0.47) |
Key Performance Indicators
For fiscal 2024, Red Robin noted several key performance indicators reflecting operational efficiency and market trends:
- Comparable Restaurant Revenue: Decreased by 2.6% year-to-date, excluding a deferred revenue benefit from the loyalty program .
- Average Guest Check: Increased by 4.4% attributed to a rise in menu prices .
- Guest Count: Decreased by 6.5%, affected by adverse weather and the exit from virtual brands .
Operational Costs
The operational costs for Red Robin in Q3 2024 were as follows:
| Cost Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Cost of Sales | $65.1 | $65.1 |
| Labor | $107.7 | $103.7 |
| Other Operating Costs | $49.7 | $50.4 |
| Occupancy | $23.8 | $23.5 |
| Total Costs and Expenses | $287.5 | $279.5 |
Labor costs as a percentage of restaurant revenue increased to 39.8% in Q3 2024 from 38.0% in Q3 2023, primarily due to strategic investments in labor and increased hourly labor costs .
Liquidity and Capital Resources
As of October 6, 2024, Red Robin reported a liquidity of approximately $42.0 million, including cash and cash equivalents and available borrowing capacity .
Net cash provided by operating activities for the year-to-date period was $1.8 million, a decrease of $15.5 million from the previous year .
How Red Robin Gourmet Burgers, Inc. (RRGB) Works
Business Overview
Red Robin Gourmet Burgers, Inc. operates and franchises full-service restaurants across North America, focusing primarily on gourmet burgers and a casual dining experience. As of October 6, 2024, the company had a total of 500 locations, consisting of 408 company-owned and 92 franchised restaurants.
Financial Performance
For the twelve weeks ended October 6, 2024, Red Robin reported total revenues of $274.6 million, a decrease from $277.6 million in the same period of 2023. The company experienced a net loss of $18.9 million, compared to a net loss of $8.2 million for the same quarter in the previous year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $274.6 million | $277.6 million | (1.1)% |
| Net Loss | $(18.9) million | $(8.2) million | +130.5% |
| Adjusted EBITDA | $2.1 million | $6.8 million | (69.1)% |
Revenue Breakdown
The revenues are primarily derived from three main sources: restaurant revenue, franchise revenue, and other revenue streams. For the twelve weeks ending October 6, 2024, the breakdown was as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Restaurant Revenue | $270,605 | $273,133 |
| Franchise Revenue | $3,007 | $3,418 |
| Other Revenue | $1,026 | $1,009 |
Cost Structure
Red Robin's total costs and expenses for the twelve weeks ended October 6, 2024, amounted to $287.5 million, which is slightly higher than the $279.5 million reported in the same period of 2023. Key components include labor, occupancy, and cost of sales:
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Sales | $65,105 | $65,128 |
| Labor Costs | $107,692 | $103,741 |
| Occupancy Costs | $23,826 | $23,523 |
Operating Metrics
Average weekly net sales volumes for company-owned restaurants were reported at $55,007 for Q3 2024, compared to $54,572 for Q3 2023, indicating a slight increase of 0.8%. The company also noted a decline in guest count, contributing to the overall decrease in revenue despite an increase in average guest checks due to menu price adjustments.
Liquidity and Capital Resources
As of October 6, 2024, Red Robin had cash and cash equivalents totaling $30.3 million, down from $31.6 million at the beginning of the fiscal year. The company reported total liquidity of approximately $42.0 million, including available borrowing capacity under its credit facility.
Debt Obligations
Red Robin had outstanding borrowings of $180.7 million under its credit facility, which includes $20.0 million drawn on its revolving line of credit. The company has made efforts to manage its debt, having completed a sale-leaseback transaction that generated net proceeds of approximately $23.3 million.
Restaurant Operations
The company operates its restaurants primarily through a combination of company-owned and franchised locations. The operational strategy focuses on enhancing customer experience and optimizing menu offerings. As of the end of Q3 2024, Red Robin had closed 9 locations since October 1, 2023, impacting overall revenue.
Key Performance Indicators
Comparable restaurant revenue, which reflects the performance of locations open for at least 18 months, decreased by 2.1% year-to-date. This metric is critical for assessing the underlying performance of the restaurant chain amid various operational challenges.
| Key Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Comparable Restaurant Revenue Change | (2.1)% | 1.5% |
| Total Number of Restaurants | 500 | 508 |
Franchising and Revenue Contributions
Franchise revenue is derived from royalties based on franchisee sales, typically between 4.0% to 5.0%. The contribution to overall revenue from franchises has been variable, reflecting changes in franchisee performance and market conditions.
How Red Robin Gourmet Burgers, Inc. (RRGB) Makes Money
Revenue Streams
Red Robin Gourmet Burgers, Inc. generates revenue primarily from three main streams:
- Restaurant Revenue: The majority of revenue comes from food and beverage sales at Company-owned restaurants.
- Franchise Revenue: This includes sales-based royalties, advertising fund contributions, and franchise fees from franchised locations.
- Other Revenue: Additional revenue sources include gift card breakage, licensing income, and recycling income.
Financial Performance Overview
As of 2024, Red Robin reported a total revenue of $963.3 million for the year to date period, reflecting a decrease of $30.7 million from the previous year. The breakdown of total revenues for the twelve weeks ended October 6, 2024, is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Restaurant Revenue | $270,605 | $273,133 | (0.9) |
| Franchise Revenue | $3,007 | $3,418 | (12.0) |
| Other Revenue | $1,026 | $1,009 | 1.7 |
| Total Revenue | $274,638 | $277,560 | (1.1) |
Comparable Restaurant Revenue
In the third quarter of fiscal 2024, the comparable restaurant revenue increased by 0.6%. This was attributed to a 4.9% increase in average guest check, despite a 4.3% decrease in guest count. The average guest check increase was driven by a 7.5% rise in menu prices.
Costs and Expenses
Red Robin's total costs and expenses for the twelve weeks ended October 6, 2024, amounted to $287.5 million, compared to $279.5 million in the same period of 2023. Key components include:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Sales | $65,105 | $65,128 |
| Labor | $107,692 | $103,741 |
| Other Operating Costs | $49,740 | $50,351 |
| Occupancy | $23,826 | $23,523 |
| Depreciation and Amortization | $13,330 | $14,672 |
Net Income and Loss
Red Robin reported a net loss of $18.9 million for the third quarter of fiscal 2024, compared to a net loss of $8.2 million in the same quarter of the previous year. Adjusted EBITDA for Q3 2024 was $2.1 million, down from $6.8 million in Q3 2023.
Key Financial Metrics
Key financial metrics for Red Robin as of October 6, 2024, include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $(18,876,000) | $(8,161,000) |
| Loss Per Share (Diluted) | $(1.20) | $(0.52) |
| Adjusted EBITDA | $2,100,000 | $6,800,000 |
Franchise Operations
As of October 6, 2024, Red Robin owned 408 restaurants and had 92 franchised locations. Franchisees remit 4.0% to 5.0% of their revenues as royalties to Red Robin, contributing to the franchise revenue stream.
Conclusion
Red Robin's financial health is characterized by ongoing challenges reflected in its net losses and declining revenues. Adjustments to menu pricing and operational efficiency are crucial for the company's recovery and growth moving forward.
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Resources:
- Red Robin Gourmet Burgers, Inc. (RRGB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Red Robin Gourmet Burgers, Inc. (RRGB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Red Robin Gourmet Burgers, Inc. (RRGB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.