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].

Core Viewpoint - Red Robin Gourmet Burgers, Inc. has announced its "First Choice" plan aimed at enhancing long-term shareholder value and provided an updated financial outlook for the second quarter of fiscal 2025 [1][2]. Group 1: First Choice Plan - The "First Choice" plan is designed to make Red Robin the preferred choice for guests, team members, and investors through coordinated initiatives [2][3]. - Key components of the plan include protecting the foundations of the previous North Star Plan, driving traffic through creative engagement, managing expenses to reduce debt, investing in restaurant facilities, and fostering a high-performance work environment [3][4]. Group 2: Financial Outlook - The company expects second quarter comparable restaurant sales to decrease by approximately 4%, slightly worse than the previous expectation of a 3% decrease [5]. - Adjusted EBITDA is anticipated to exceed prior expectations of $13 million to $16 million, indicating improved profitability [5][6]. - The first half of 2025 is projected to show Adjusted EBITDA surpassing the full-year results of 2024, reflecting operational excellence and cost efficiency [6]. Group 3: Investor Communication - An investor conference call is scheduled for July 15, 2025, to discuss the "First Choice" plan and updated financial expectations [7]. - The call will be accessible via phone and will also be webcast live, with a replay available shortly after the call [8].