Red Robin Gourmet Burgers(RRGB) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenues for Q2 2024 were $300.2 million, an increase of $1.5 million compared to Q2 2023[2] - Net loss for Q2 2024 was $9.5 million, compared to net income of $3.9 million in Q2 2023[2] - Adjusted EBITDA for Q2 2024 was $11.8 million, down from $15.5 million in Q2 2023[2] - Year-to-date total revenues were $688.7 million, a decrease of $27.8 million compared to the same period in 2023[2] - Total revenues for the twelve weeks ended July 14, 2024, were $300.154 million, a slight increase from $298.648 million in the same period last year, representing a growth of 0.5%[10] - Restaurant revenue increased to $294.457 million from $293.281 million year-over-year, indicating a growth of 0.4%[10] - Franchise revenue rose to $4.287 million, up 20.9% from $3.544 million in the prior year[10] - Reported net income for the twelve weeks ended July 14, 2024, was $(9,489) thousand, compared to a net income of $3,922 thousand for the same period in 2023[13] - Adjusted net income for the twenty-eight weeks ended July 14, 2024, was $(19,722) thousand, significantly lower than $36 thousand for the same period in 2023[13] Costs and Expenses - Total costs and expenses for the quarter were $304.715 million, compared to $288.390 million in the same period last year, reflecting an increase of 5.7%[10] - General and administrative expenses for the twelve weeks ended July 14, 2024, were $16,612 thousand, compared to $20,111 thousand in the same period last year[16] - Total interest expense for the twelve weeks ended July 14, 2024, was $4,997 thousand, compared to $6,305 thousand in the same period last year[17] - The company incurred litigation contingencies of $356 thousand for the twelve weeks ended July 14, 2024, compared to $1,240 thousand in the same period last year[17] - Asset impairment charges for the twelve weeks ended July 14, 2024, were $1,128 thousand, consistent with the prior year[13] Balance Sheet - Total assets decreased to $689.132 million as of July 14, 2024, down from $741.934 million at the end of 2023, a decline of 7.1%[11] - Total liabilities were $725.675 million, a decrease from $762.376 million at the end of 2023, indicating a reduction of 4.8%[11] - Cash and cash equivalents slightly decreased to $23.135 million from $23.634 million at the end of 2023[11] Share Performance - Basic and diluted loss per share for the quarter was $(0.61), compared to earnings of $0.24 per share in the same period last year[10] - The weighted average diluted shares outstanding for the twelve weeks ended July 14, 2024, were 15,680 thousand, down from 16,291 thousand in the prior year[13] - The company reported a loss per share of $(0.61) for the twelve weeks ended July 14, 2024, compared to earnings of $0.24 per share in the same period last year[13] Business Strategy and Outlook - Updated guidance for fiscal 2024 includes total revenue of approximately $1.250 billion and adjusted EBITDA of $40.0 million to $45.0 million[5] - The company completed a sale-leaseback transaction for ten restaurants, generating net proceeds of approximately $23.3 million[2] - The second amendment to the credit agreement provides additional flexibility to support the execution of the company's North Star business strategy[4] Guest Experience - The company has seen guest satisfaction scores increase to levels not achieved since 2016, indicating improvements in guest experience[2] - Restaurant-level operating profit margin for the twelve weeks ended July 14, 2024, was 11.8%, down from 12.6% in the same period last year[15] - EBITDA for the twelve weeks ended July 14, 2024, was $8,870 thousand, a decrease from $26,139 thousand in the prior year[17]