Red Robin Gourmet Burgers (RRGB) Q3 2024 earnings summary

Executive summary

• Third quarter revenues were $274.6 million, down year-over-year, with comparable restaurant revenue up 0.6% and net loss widening to $18.9 million from $8.2 million last year.

• Loyalty program membership grew to 14.5 million, supporting improved guest satisfaction and engagement.

• Guest satisfaction scores (OSAT) rose over 13 points since the North Star Plan began, reaching the highest levels since at least 2016 and surpassing industry averages.

• Strategic shift away from deep discounting toward enhancing guest experience and value proposition, supported by targeted promotions and marketing.

• Management remains focused on executing the North Star Plan for sustainable long-term growth despite macroeconomic headwinds.

Financial highlights

• Q3 2024 total revenues were $274.6 million, down from $277.6 million in Q3 2023, mainly due to restaurant closures.

• Comparable restaurant revenue increased 0.6% in Q3, driven by a 4.9% increase in average guest check, offset by a 4.3% decrease in guest count.

• Restaurant-level operating profit margin was 9.0% in Q3, down 210 basis points year-over-year.

• Adjusted EBITDA was $2.1 million in Q3, down from $6.8 million last year; year-to-date Adjusted EBITDA was $26.1 million, down from $58.3 million.

• Q3 net loss was $18.9 million ($1.20 per diluted share), compared to $8.2 million loss ($0.52 per share) in Q3 2023.

Outlook and guidance

• Fiscal 2024 total revenue expected to be approximately $1.25 billion.

• Restaurant-level operating profit margin projected at least 10.5% for the year.

• Adjusted EBITDA guidance for 2024 is $35.0 million to $37.5 million.

• Capital expenditures for 2024 expected to be $25 million.

• Q4 expectations: traffic to decline ~4%, PPA to increase ~6%, and a 1.5% headwind from deferred loyalty revenue.