Red Robin Gourmet Burgers (RRGB) Q2 2025 Earnings Call August 13, 2025 04:30 PM ET Speaker0Good afternoon, and welcome to the Red Robin Gourmet Burgers Incorporated Second Quarter twenty twenty five Earnings Call. This conference is being recorded. During management's presentation and in response to your questions, they will be making forward looking statements about the company's business outlook and expectations. These forward looking statements and all other statements that are not historical facts refle ...

Financial Performance - Total revenues for the second quarter of 2025 were $283.7 million, a decrease of $16.5 million compared to the same period in 2024 [4][7] - Comparable restaurant revenue decreased by 3.2%, but increased by 0.4% year-to-date when excluding deferred loyalty revenue [7][8] - Net income for the second quarter was $4.0 million, a significant improvement from a net loss of $9.5 million in the previous year [4][7] - Adjusted EBITDA increased by 64% to $22.4 million for the second quarter, and by 86% to $50.3 million year-to-date [4][7] Operational Highlights - The company has initiated its First Choice plan, which has already shown positive results, particularly with the Big YUMMM Burger Deal launched in July [3] - Restaurant-level operating profit margin improved to 14.5% in the second quarter, up from 11.8% in the same period last year [4][27] - The company reduced its outstanding borrowings under its credit facility by $20.3 million, bringing total borrowings to $169.2 million as of July 13, 2025 [5] Guidance and Outlook - The company anticipates total revenues for fiscal 2025 to be between $1.21 billion and $1.23 billion, with adjusted EBITDA projected between $60 million and $65 million [8] - Comparable restaurant sales are expected to decline approximately 3% to 4% for the remainder of fiscal 2025 [8] Restaurant Unit Data - As of July 13, 2025, the total number of restaurants was 487, down from 503 a year earlier, with 4 company-owned locations closed during the quarter [19]

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].