Red Robin Gourmet Burgers(RRGB) - 2023 Q1 - Quarterly Report

Financial Performance - Total revenues for the sixteen weeks ended April 16, 2023, were $418.0 million, an increase of$ 22.4 million or 5.6% compared to the same period in 2022[60]. - Net loss remained unchanged at $3.1 million, with a GAAP loss per diluted share of$ 0.19 compared to $0.20 in 2022[61][65]. - Income from operations was$ 4.3 million, representing 1.0% of total revenues, slightly down from 1.1% in 2022[62][69]. - Adjusted EBITDA increased by $8.1 million to$ 36.1 million, reflecting strong operational performance[62][67]. - Adjusted income per diluted share was $0.25, a significant improvement from an adjusted loss of$ 0.12 in 2022[65]. Revenue Growth - Comparable restaurant revenue increased by 8.6%, marking the ninth consecutive quarter of positive growth[62]. - Restaurant revenue for the sixteen weeks ended April 16, 2023, was $406.9 million, a 6.9% increase from$ 380.6 million in the same period of 2022[75]. - Comparable restaurant revenue increased by 8.6%, driven by an 8.0% rise in average guest check and a 0.6% increase in guest count[76]. - Comparable restaurant dine-in sales surged by 16.4% during the quarter[62]. Operating Costs - Total restaurant operating costs increased by 18.5% to $346.9 million, with cost of sales rising by 9.6% and labor costs by 5.3%[63]. - Cost of sales rose to$ 99.7 million, representing 24.5% of restaurant revenue, an increase of 60 basis points compared to the prior year[80]. - Labor costs increased to $145.4 million, accounting for 35.7% of restaurant revenue, a decrease of 60 basis points year-over-year[81]. - Other operating costs were$ 72.1 million, or 17.7% of restaurant revenue, a slight decrease of 10 basis points from the previous year[83]. - Occupancy costs decreased to $29.8 million, representing 7.3% of restaurant revenue, down 70 basis points compared to the same period in 2022[84]. - Depreciation and amortization expenses were$ 21.8 million, or 5.2% of total revenues, a decrease of 80 basis points year-over-year[86]. Capital Expenditures and Cash Flow - Net cash provided by operating activities rose by $4.0 million to$ 17.3 million for the sixteen weeks ended April 16, 2023[97]. - Net cash used in investing activities increased by $6.5 million to$ 16.1 million, primarily due to accelerated Donatos installations and restaurant improvements[98]. - Total capital expenditures for the sixteen weeks ended April 16, 2023, were $16.1 million, up from$ 9.7 million in the prior year[98]. Debt and Liquidity - Total debt outstanding decreased by $1.0 million to$ 213.9 million as of April 16, 2023[105]. - The company had $10.0 million of available borrowing capacity under its Credit Facility as of April 16, 2023[102]. - As of April 16, 2023, the company had$ 213.0 million of borrowings subject to variable interest rates[118]. Interest and Tax - Interest expense for the sixteen weeks ended April 16, 2023, was $7.8 million, with a weighted average interest rate of 11.6%, up from 8.2% in the prior year[91]. - Interest income increased by$ 0.7 million to $0.4 million for the sixteen weeks ended April 16, 2023, compared to an expense of$ 0.3 million in the prior year[92]. - The effective tax rate decreased to 0.6% for the sixteen weeks ended April 16, 2023, from 2.0% in the same period of 2022[93]. Share Repurchase - The company repurchased 226,500 shares at an average price of $29.14 per share for a total of$ 6.6 million since the program's inception[107]. Commodity Dependency - The company's restaurant menus are highly dependent on select commodities, including ground beef, poultry, and potatoes[119]. - A 1.0% increase in food and beverage costs would negatively impact cost of sales by approximately $3.2 million on an annualized basis[119]. - A 1.0% change in the effective interest rate would result in a pre-tax interest expense fluctuation of$ 2.1 million on an annualized basis[118].