Red Robin Q4 Earnings Miss, Revenues Beat Estimates, Stock Up

Core Viewpoint - Red Robin Gourmet Burgers, Inc. (RRGB) reported mixed results for the fourth quarter of fiscal 2024, with earnings falling short of estimates while revenues exceeded expectations, although both metrics declined year over year [1][10]. Financial Performance - The adjusted loss per share for the fourth quarter was 94 cents, which was wider than the Zacks Consensus Estimate of a loss of 54 cents, compared to a loss of 66 cents in the same quarter last year [5]. - Quarterly revenues reached $285.2 million, surpassing the consensus mark of $281 million, but represented a 7.7% decline year over year. Comparable restaurant revenues increased by 1.8% year over year [6]. Operational Insights - The restaurant-level operating profit margin was 11.5% in the fourth quarter, down from 12.2% in the prior year, and below the projected 15.4% [7]. - Restaurant labor costs were $109.1 million, down from $114.7 million in the prior year, but higher than the projected $104.5 million [7]. - Other operating costs were $48.2 million, compared to $50.8 million in the prior year, slightly above the estimate of $47.2 million [8]. - Adjusted EBITDA for the fourth quarter was $12.7 million, an increase from $10.6 million in the prior year, and above the estimate of $11.3 million [8]. Financial Position - As of December 29, 2024, RRGB had cash and cash equivalents of $30.7 million, up from $23.6 million a year earlier. Long-term debt was $181.6 million, slightly down from $182.6 million in the prior year [9]. Fiscal 2024 Overview - Total revenues for fiscal 2024 were $1.25 billion, down from $1.3 billion in fiscal 2023. Adjusted EBITDA for the year was $38.8 million, compared to $68.9 million in fiscal 2023. The adjusted loss per share for the year was $3.34, compared to a loss of $1.44 in the previous year [10]. Fiscal 2025 Guidance - The company projects total revenues for fiscal 2025 to be between $1.225 billion and $1.250 billion, with restaurant-level operating profit expected to range from 12% to 13%. Adjusted EBITDA is anticipated to be between $60 million and $65 million [11].