Thu, Aug 22, 8:36 PM (145 days ago)
For the second quarter ended July 14, 2024, Red Robin Gourmet Burgers, Inc. reported total revenues of $300.2 million, a slight increase from $298.6 million in the prior year, while year-to-date revenues fell to $688.7 million from $716.5 million. The company experienced a net loss of $9.5 million, contrasting with a net income of $3.9 million in the same quarter last year. Adjusted EBITDA also declined to $11.8 million from $15.5 million year-over-year. Key operational metrics revealed a comparable restaurant revenue decline of 0.8%, which improved to a 1.4% increase when accounting for a deferred revenue benefit from a loyalty program change. Labor costs increased, attributed to strategic investments and higher insurance costs, leading to a rise in labor as a percentage of restaurant revenue. Cash flow from operations decreased to $14.2 million, down from $18.2 million, while investing activities yielded $9.4 million, primarily from reduced capital expenditures and sale-leaseback transactions. The company amended its credit agreement to enhance liquidity and flexibility, increasing the revolving credit capacity to $40 million. Overall, the financial outlook remains cautious due to declining revenues and increased operating costs.