Red Robin Gourmet Burgers(RRGB) - 2025 Q2 - Quarterly Results

Red Robin Gourmet Burgers, Inc. Announces "First Choice" Plan and Updated Q2 Outlook The company announces its "First Choice" strategic plan and provides an updated financial outlook for Q2 2025 Introduction and "First Choice" Plan Overview The company introduces its "First Choice" plan to drive long-term value through strategic initiatives - The "First Choice" plan is an integrated strategy to make Red Robin the top choice for guests, team members, and investors[3] - The plan aims to generate resources to strengthen the balance sheet, fund marketing and technology investments, and consistently deliver value and a great guest experience[3] - The expected outcomes are sustainable guest count growth, increased profitability, and generation of free cash flow[3] Core Components of the "First Choice" Plan The plan is built on five pillars: operations, traffic, cost management, restaurant upgrades, and culture - Hold Serve: Maintain operational efficiencies, food quality, and expense management established under the North Star Plan[5][6][7] - Drive Traffic: Implement a new marketing plan to inspire new and returning guests and deliver consistent value[7][11] - Find Money: Reduce system-wide expenses, tactically refranchise select restaurants, and lower debt to fund key initiatives[8][11] - Fix Restaurants: Address deferred maintenance, improve guest-facing surroundings, and invest in new technology[9][11] - Win Together: Cultivate a guest-centric, high-performance culture that attracts, retains, and develops top industry talent[9][11] Updated Second Quarter 2025 Financial Outlook The company updates its Q2 2025 outlook, forecasting lower sales but higher Adjusted EBITDA Q2 2025 Financial Outlook Update | Metric | Previous Outlook | Updated Outlook | | :--- | :--- | :--- | | Comparable Restaurant Sales | Decrease of ~3% | Decrease of ~4% | | Adjusted EBITDA | $13M - $16M | > $16M | - Profitability improvements in the first half of 2025 have already surpassed the full-year 2024 results, driven by operational excellence and cost-saving initiatives[12] - The improved financial position will enable accelerated investments in initiatives aimed at driving guest traffic[12] Investor Conference Call and Webcast An investor call is scheduled for July 15th to discuss the new plan and updated financial outlook - An investor conference call is scheduled for July 15th at 8:30 a.m. ET to discuss the new strategic plan and financial expectations[13] - A replay of the call will be available by phone until Tuesday, July 22, 2025, and the webcast will be archived on the company's investor relations website[14][15] About Red Robin Gourmet Burgers, Inc. The company is a casual dining chain with nearly 500 locations known for its gourmet burgers - Red Robin is a casual dining chain with nearly 500 restaurants in the U.S. and Canada, operating under both company-owned and franchise models[16] - The menu features a wide array of burgers, appetizers, entrees, and desserts, with Donatos® pizza available at some locations[16] Forward-Looking Statements The report contains forward-looking statements subject to significant risks and uncertainties - The document contains forward-looking statements concerning the "First Choice" plan and financial outlook, which are not guarantees of future performance[17] - A wide range of risks could impact actual results, including the ability to implement the plan, economic conditions, competition, capital availability, IT system failures, and supply chain disruptions[18]