Red Robin Gourmet Burgers(US:RRGB)2026-02-25 21:38Financial Performance - Total revenues for fiscal 2025 were $1.21 billion, a decrease of $38.3 million or 3.1% from fiscal 2024[169]. - Net loss for fiscal 2025 was $23.3 million, an improvement from a net loss of $77.5 million in fiscal 2024[169]. - Adjusted EBITDA increased by 52.8% to $69.7 million in fiscal 2025 compared to fiscal 2024[169]. - Restaurant revenue decreased by 2.8% to $1,189.8 million in fiscal 2025 from $1,224.3 million in fiscal 2024[193]. - Adjusted net income (loss) per diluted share was $(0.64) in fiscal 2025, compared to $(3.00) in fiscal 2024[199]. - Net cash provided by operating activities increased by $30.0 million to $37.0 million in fiscal 2025 compared to $7.0 million in fiscal 2024, driven by higher restaurant-level profitability and increased gift card sales[206]. Revenue Breakdown - Comparable restaurant revenue decreased by 0.3% in fiscal 2025, with a 3.8% decrease in guest count partially offset by a 3.5% increase in average guest check[173]. - Other revenue decreased by $3.0 million or 32.0% in fiscal 2025, primarily due to lower gift card breakage[175]. - Franchise revenue decreased by $0.9 million or 5.8% in fiscal 2025, driven by lower franchise royalties and marketing contributions[174]. Cost Management - Labor costs decreased by 8.8% to $437.2 million, with labor as a percentage of restaurant revenue decreasing by 2.5% to 36.7%[177]. - General and administrative expenses decreased by 6.7% to $76.3 million, reflecting lower headcount and costs associated with annual events[182]. - Selling expenses decreased by $5.4 million or 14.7% in fiscal 2025 compared to fiscal 2024, representing 2.6% of total revenues[183]. - Total restaurant operating costs decreased by 4.9% to $1,038.3 million in fiscal 2025, contributing to a restaurant level operating profit increase of 14.2%[193]. Operational Changes - The number of Company-owned restaurants decreased from 407 to 385, while franchised restaurants decreased from 91 to 90 during fiscal 2025[168]. - The company closed 22 locations in fiscal 2025, recognizing non-cash impairment charges of $2.7 million related to underperforming locations[184]. - The Company recognized non-cash impairment charges of $2.7 million in fiscal 2025, primarily related to four underperforming locations, compared to $32.8 million for 58 locations in fiscal 2024[219]. Capital Expenditures and Financing - Net cash used in investing activities was $24.6 million in fiscal 2025, a significant increase from $1.7 million in fiscal 2024, primarily due to higher capital expenditures[207]. - Total capital expenditures rose to $30.8 million in fiscal 2025 from $26.0 million in fiscal 2024, with investments in restaurant improvements and technology[207]. - Net cash used in financing activities was $22.3 million in fiscal 2025, compared to a cash inflow of $2.5 million in fiscal 2024, mainly due to debt repayments[208]. - As of December 28, 2025, the Company had $170.2 million in borrowings under its credit facility, with a variable interest rate exposure that could lead to a pre-tax interest expense fluctuation of $1.7 million for a 1.0% change in rates[225]. Compliance and Obligations - The Company is in compliance with all debt covenants under its credit facility as of December 28, 2025[212]. - The Company had total contractual obligations of $924.2 million as of December 28, 2025, including long-term debt obligations of $203.7 million and operating lease obligations of $498.1 million[216]. Commodity Price Risk Management - Approximately 53% of the Company's estimated annual food and beverage purchases were covered by fixed-price contracts as of December 28, 2025, to mitigate commodity price risks[227]. Interest and Taxation - Interest expense increased to $26.0 million in fiscal 2025 from $25.3 million in fiscal 2024, primarily due to a rise in the weighted average interest rate to 14.2%[186]. - Income tax provision was $0.3 million in fiscal 2025, compared to a benefit of $0.1 million in fiscal 2024, with an effective tax rate of 1.1%[188].