Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Third Quarter Ended October 6, 2024

Core Insights - Red Robin Gourmet Burgers, Inc. reported a comparable restaurant revenue increase of 0.6% for the third quarter of fiscal 2024, despite total revenues decreasing by $2.9 million to $274.6 million compared to the same period last year [2][4] - The company experienced a net loss of $18.9 million in the third quarter, compared to a net loss of $8.2 million in the previous year, indicating a significant decline in profitability [2][4] - The relaunch of the loyalty program has been successful, increasing membership to 14.5 million from 13.1 million year-over-year [2][4] Financial Performance - Total revenues for the year-to-date period of fiscal 2024 were $963.3 million, down $30.7 million from the previous year [3] - Adjusted EBITDA for the third quarter was $2.1 million, a decrease from $6.8 million in the same quarter last year [2][5] - Restaurant-level operating profit margin decreased to 9.0% in the third quarter from 11.1% in the prior year [5][21] Credit Agreement Amendments - The company executed an amendment to its credit agreement, extending financial covenant adjustments and expanding revolver capacity through the first quarter of fiscal 2026 [2][8] - The second amendment increased the maximum net total leverage ratio and revolving commitments, providing additional flexibility for the company's strategic initiatives [7][9] Operational Strategy - The company's North Star Plan is showing progress, with comparable restaurant revenue exceeding the industry average and guest satisfaction scores improving significantly [4] - The company aims to drive sustainable long-term growth and return to prominence in the industry, despite facing macroeconomic challenges [4] Outlook - The updated guidance for fiscal 2024 includes total revenue projections of approximately $1.250 billion and adjusted EBITDA of $35.0 million to $37.5 million [10][11] - The company plans to invest approximately $25 million in capital expenditures to enhance guest experience and operational efficiency [10]