Red Robin (RRGB) Q2 Earnings Lag Estimates, Revenues Beat

Core Insights - Red Robin Gourmet Burgers, Inc. (RRGB) reported mixed second-quarter fiscal 2024 results, with earnings missing expectations while revenues exceeded them, leading to a 14% decline in shares post-results due to lowered guidance amid industry slowdown [1][2][6] Financial Performance - The company recorded an adjusted loss per share of 48 cents, wider than the Zacks Consensus Estimate of a loss of 41 cents, compared to a loss of 24 cents in the prior-year quarter [2] - Quarterly revenues reached $300.2 million, surpassing the consensus mark of $296 million, reflecting a year-over-year increase of 0.5% [2] - Comparable restaurant revenues increased by 1.4% year over year [2] Operating Metrics - The restaurant-level operating profit margin was 11.8%, down from 12.6% in the prior-year quarter and slightly below the projected 11.9% [3] - Restaurant labor costs rose by 3.9% year over year to $113.9 million, exceeding the projection of $112.2 million [3] - Other operating costs were reported at $51.7 million, slightly lower than the prior-year figure of $51.8 million and below the projection of $54.3 million [4] EBITDA and Cash Position - Adjusted EBITDA for the quarter was $11.8 million, down from $15.5 million in the prior-year quarter and below the estimate of $14.1 million [4] - As of July 14, 2024, cash and cash equivalents stood at $23.1 million, a slight decrease from $23.6 million as of December 31, 2023 [5] - Long-term debt decreased to $162.3 million from $182.6 million in the prior-year quarter [5] 2024 Guidance - For fiscal 2024, total revenues are now expected to be approximately $1.25 billion, down from a previous range of $1.25-$1.275 billion [6] - Restaurant-level operating profit is anticipated to be between 11-11.5%, reduced from the previous expectation of 12.5-13.5% [6] - Adjusted EBITDA is now expected to be in the range of $40-$45 million, down from the previous expectation of $60-$70 million [6]