Red Robin Gourmet Burgers (RRGB) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenues were $300.2 million, up $1.5 million year-over-year, but net loss widened to $9.5 million from net income of $3.9 million last year.

• Comparable restaurant revenue increased 1.4% including loyalty benefit, but declined 0.8% excluding it.

• Adjusted EBITDA for Q2 was $11.8 million, down from $15.5 million in Q2 2023.

• Guest satisfaction scores reached their highest since 2016, with significant improvements in food quality, service, and overall experience.

• Loyalty program relaunch drove a 156% increase in sign-ups and higher guest frequency and spend.

Financial highlights

• Restaurant revenue for Q2 2024 was $294.5 million, up 0.4% year-over-year; franchise revenue rose 21% to $4.3 million.

• Restaurant level operating profit margin was 11.8% in Q2 2024, down from 12.6% last year.

• Labor costs increased to 38.7% of restaurant revenue, up 130 basis points year-over-year.

• Occupancy costs rose to 8.4% of restaurant revenue, up 40 basis points, due to increased fixed rents from sale-leasebacks.

• Cash and equivalents at quarter end were $23.1 million, with $167.9 million in outstanding credit agreement principal.

Outlook and guidance

• 2024 revenue guidance set at approximately $1.25 billion.

• Restaurant level operating profit margin expected at 11.0% to 11.5%.

• Adjusted EBITDA guidance lowered to $40–45 million, reflecting reduced traffic and higher costs.

• Capital expenditures projected at $25–30 million.

• Management expects future cash flows, borrowing capacity, and cash on hand to be sufficient for anticipated needs over the next 12 months.