Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $265.1 million, down from $274.6 million in Q3 2024, reflecting a comparable restaurant revenue decline of 1.2% [18][19] - Restaurant-level operating profit as a percentage of restaurant revenue increased by 90 basis points year-over-year to 9.9%, driven by labor efficiency gains [19] - Adjusted EBITDA for Q3 2025 was $7.6 million, an increase of $3.4 million compared to Q3 2024, attributed to cost efficiency gains and menu price increases [20] Business Line Data and Key Metrics Changes - The off-premise business accounted for approximately 25% of sales in Q3 2025, with traffic growth of 2.9% [11] - The Big Yum Burger deal launched in Q3 contributed to a 250-basis point sequential traffic improvement from Q2 to Q3 [7][19] - The company achieved a 1.7% increase in net menu price, offset by a 3% decline in guest traffic [18] Market Data and Key Metrics Changes - Guest traffic run rate improved from approximately down 7% at the beginning of Q3 to negative 1.4% by the end of the quarter [8] - The company expects comparable restaurant sales to decline approximately 3% in Q4 2025 [21][22] Company Strategy and Development Direction - The company is focused on its "first choice plan" to enhance guest experience, operational efficiency, and profitability [4][5] - A data-driven marketing initiative was launched to engage guests more personally and effectively, with plans to expand this approach [10][39] - The company is exploring various options to strengthen its balance sheet, including debt refinancing and refranchising efforts [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while guest traffic trends have slowed recently, they remain optimistic about regaining traction as marketing spend increases [22][23] - The company is committed to maintaining a balance between investment priorities and profitability, expecting G&A savings of $3-$4 million in 2025 [12][20] - Management expressed confidence in the operational improvements and the positive impact of the Big Yum initiative on traffic trends [24][25] Other Important Information - The company completed refreshes in 20 restaurants during Q3, which are expected to enhance guest experience and drive sales [15][16] - Management announced the appointment of Jesse Griffith as Chief Operations Officer, recognizing the contributions of the operations team [26] Q&A Session Summary Question: Can you provide insights on the Big Yum initiative and its impact on sales? - The Big Yum deal is mixing at about 8% of total sales, performing as expected [28][29] Question: What are the expectations for food and beverage costs moving forward? - The company anticipates maintaining a 25% cost of goods in Q4, with measures in place to mitigate beef inflation [29] Question: What was the financial cost of extending the current debt agreement? - The extension cost was 50 basis points, deemed reasonable for the additional time [30] Question: How is the refranchising initiative progressing? - Interest in refranchising remains strong, with proposals being evaluated, but no firm announcements yet [31] Question: What are the expectations for G&A sustainability? - G&A levels are expected to remain similar to Q3, reflecting efficiencies captured this year [45] Question: Can you elaborate on the comp guidance for Q4? - The company expects same-store sales and traffic to decline by 3% in Q4, with a mix of menu price increases and traffic impacts [47]

Red Robin Gourmet Burgers (RRGB) Conference Call Summary Company Overview - **Company**: Red Robin Gourmet Burgers Incorporated (RRGB) - **Date of Call**: July 15, 2025 - **Key Speaker**: Dave Fies, President and CEO Core Industry Insights - **Industry**: Casual Dining - **Current Trends**: The casual dining sector has been experiencing traffic declines over the past several years, necessitating a strategic shift in marketing and customer engagement efforts [7][18]. Key Points and Arguments First Choice Plan - **Objective**: To position Red Robin for long-term success and strengthen its financial foundation [4][16]. - **Pillars of the Plan**: 1. **Hold Serve**: Build on the foundations established under the North Star plan, focusing on food quality and hospitality [4][6]. 2. **Drive Traffic**: Increase guest engagement and visitation through creative marketing strategies [4][7]. 3. **Find Money**: Manage expenses and assets to reduce debt and allow for critical investments [4][10]. 4. **Fix Restaurants**: Invest in physical locations to enhance the dining experience [4][14]. 5. **Win Together**: Foster a high-performance culture to attract and retain top talent [4][15]. Financial Performance - **Second Quarter Expectations**: Comparable restaurant sales are expected to decrease by approximately 4%, slightly below previous expectations of a 3% decrease [18]. - **Adjusted EBITDA**: Expected to exceed prior expectations of $13 million to $16 million, indicating positive momentum from the managing partner program [19]. Marketing Initiatives - **Big Yum! Deal**: Launching a promotional offer to drive traffic, featuring a Red's Double Tavern burger, a bottomless side, and a beverage for $9.99 [8][22]. - **Targeted Marketing Plan**: A more sophisticated marketing strategy is planned for implementation by the end of 2025, focusing on data analytics to understand guest preferences [9][56]. Cost Management - **G&A Savings**: Estimated annual reduction of approximately $10 million in general and administrative expenses [12][48]. - **Labor Efficiency**: Labor costs are expected to improve, with a target of being below 37% in Q2 [28][29]. Refranchising Strategy - **Tactical Refranchising**: Aimed at generating proceeds to reduce debt and reinvest in the business, with no material impact expected in 2025 [12][19]. - **Franchisee Opportunities**: Current franchisees may expand their holdings, while the majority of restaurants will remain company-owned [13][51]. Restaurant Improvements - **Physical Upgrades**: Initial investments will address deferred maintenance, with potential for broader renovations in the future [14][62]. - **Guest Experience Focus**: Emphasis on creating a guest-focused culture to enhance the overall dining experience [38][39]. Additional Important Insights - **Competitive Environment**: The company acknowledges the need to remain competitive in pricing while avoiding excessive discounting that could dilute brand value [25][65]. - **Ownership Mindset**: The Managing Partner Program has fostered a culture of accountability and performance among restaurant operators, contributing to improved profitability [34][35]. Conclusion - **Outlook**: The management expresses confidence in the First Choice Plan and its ability to drive sustainable growth and shareholder value, with updates expected in future earnings calls [17][68].