Red Robin Gourmet Burgers(RRGB) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the first quarter of fiscal 2025 were $392.4 million, an increase of$ 3.8 million compared to the same period last year[75]. - Net income for the first quarter was $1.2 million, a significant improvement from a net loss of$ 9.5 million in the prior year, representing a $10.7 million increase[75]. - Adjusted EBITDA rose to$ 27.9 million, reflecting a 108.2% increase from $13.4 million in the same quarter last year[75]. - Restaurant revenue rose by 1.9% to$ 385.8 million in Q1 fiscal 2025 from $378.6 million in Q1 fiscal 2024, with total restaurant operating costs decreasing by 1.9%[98]. - Restaurant level operating profit increased by 32.5% to$ 55.0 million in Q1 fiscal 2025, with a margin of 14.3% compared to 11.0% in Q1 fiscal 2024[102]. - Net income for Q1 fiscal 2025 was $1.25 million, a significant improvement from a net loss of$ 9.46 million in Q1 fiscal 2024[99]. - Adjusted EBITDA for Q1 fiscal 2025 was $27.9 million, up from$ 13.4 million in Q1 fiscal 2024[100]. Revenue Sources - Comparable restaurant revenue increased by 3.1%, with a total increase of $11.5 million, while non-comparable and closed restaurant revenue decreased by$ 4.3 million[74][75]. - Franchise revenue decreased by 16.0% to $4.5 million, primarily due to reduced franchisee contributions for marketing programs[84]. Cost Management - Labor costs as a percentage of restaurant revenue decreased to 37.1%, down from 39.3% in the same quarter last year, indicating improved efficiency[88]. - Cost of sales as a percentage of restaurant revenue decreased by 1.0% to 22.8%, driven by menu price increases and vendor contributions[86]. - Selling expenses decreased by 30.8% to$ 9.4 million in Q1 fiscal 2025 from $13.5 million in Q1 fiscal 2024, representing 2.4% of total revenues[95]. Cash Flow and Liquidity - Cash and cash equivalents decreased by$ 6.1 million to $33.3 million as of April 20, 2025, with total liquidity of approximately$ 59.2 million[103]. - Net cash provided by operating activities increased by $5.8 million to$ 19.6 million in Q1 fiscal 2025 compared to $13.7 million in Q1 fiscal 2024[105]. - Capital expenditures totaled$ 11.97 million in Q1 fiscal 2025, up from $8.25 million in Q1 fiscal 2024[107]. - Net cash flows used in financing activities decreased to$ 19.3 million in Q1 fiscal 2025 from $21.9 million in Q1 fiscal 2024[108]. Debt and Financing - As of April 20, 2025, the Company had outstanding borrowings of$ 164.8 million under the Credit Facility, with $35.0 million of available borrowing capacity[113]. - The Second Amendment to the Credit Agreement increased aggregate revolving commitments by$ 15.0 million to $40.0 million through the third quarter of 2025[111]. - The Company is subject to customary covenants under its Credit Facility, including a net total leverage ratio covenant, and was in compliance as of April 20, 2025[114]. - A 1.0% change in the effective interest rate on$ 171.7 million of borrowings would result in a pre-tax interest expense fluctuation of $1.7 million annually[124]. - Interest expense increased by$ 0.6 million to $8.1 million in Q1 fiscal 2025, with a weighted average interest rate of 14.1% compared to 13.2% in Q1 fiscal 2024[96]. Shareholder Actions - The Company has repurchased a total of 1,088,588 shares at an average price of$ 15.18 per share for an aggregate amount of $16.52 million since the share repurchase program began[116]. Operational Changes - The total number of restaurants decreased from 505 to 491, with 401 company-owned and 90 franchised locations as of April 20, 2025[76][77]. - Average weekly net sales volumes in company-owned restaurants increased by 4.1% to$ 59,483 compared to $57,139 in the prior year[82]. Risk Management - The Company continues to monitor interest rate risk and may use interest rate swaps to manage exposure to interest rate changes[125]. - A 1.0% increase in food and beverage costs would negatively impact cost of sales by approximately$ 2.9 million on an annualized basis[126]. Seasonal Trends - The business is subject to seasonal fluctuations, with historically higher sales during spring, summer, and winter holiday seasons[117]. Accounting and Compliance - The Company has no significant changes in critical accounting estimates since the last Annual Report[119]. - The Company operates with a working capital deficit, utilizing operating cash flows to fund capital expenditures and debt repayment[115].