Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $392.4 million, compared to $388.5 million in Q1 2024, reflecting an increase [11] - Comparable restaurant revenue increased by 3.1%, driven by a 6.8% increase in net menu price, despite a 3.5% decline in guest traffic [12] - Restaurant level operating profit as a percentage of restaurant revenue was 14.3%, an increase of 330 basis points compared to Q1 2024 [12] - Adjusted EBITDA was $27.9 million, an increase of $14.5 million versus Q1 2024, attributed to cost efficiency gains and menu price increases [13] - General and administrative costs rose to $27 million from $25.8 million in Q1 2024, while selling expenses decreased to $9.4 million from $13.5 million [13] Business Line Data and Key Metrics Changes - The revamped Red Robin Royalty program had approximately 15.3 million members at the end of Q1 2025, contributing to increased guest engagement [9] Market Data and Key Metrics Changes - The company anticipates annual comparable restaurant sales to remain generally unchanged at approximately 0% for 2025 [15] - Guest traffic trends are expected to continue at a decline of approximately 4% for the remainder of the year [34] Company Strategy and Development Direction - The company aims to maintain improvements in guest experience while implementing strategies for sustainable growth in restaurant traffic and profitability [20] - Key priorities include retaining operational execution, returning to sustainable traffic growth, strengthening financial position by reducing debt, and reinvesting in restaurant facilities [21][22] - The company is focused on enhancing marketing strategies to restore Red Robin as a preferred dining option [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress but acknowledged the need for further improvements in guest experience [19] - The company is cautious about the broader macro and consumer environment, which has led to a more conservative outlook for the remainder of the year [15][16] Other Important Information - The company ended Q1 2025 with $24.2 million in cash and cash equivalents, $9.1 million in restricted cash, and $35 million available under its revolving line of credit [14] - The company plans to refinance a term loan maturing in Q1 2027 and has made progress in reducing debt [14][76] Q&A Session Summary Question: Profitability in Q1 and guidance for the year - Management noted that efficiency gains in labor contributed significantly to Q1 profitability, despite anticipated pressure from tariffs and traffic declines [30][32] Question: Menu price contribution and expectations for the rest of the year - Management expects menu price contribution to decline throughout the year, with projected check growth of about 4% in Q2 and Q3, and 2% in Q4 [37] Question: Loyalty program performance and future opportunities - Management indicated that the loyalty program is performing well, with significant opportunities for further growth and engagement [39][40] Question: Traffic trends and promotional performance - Management confirmed that traffic trends are consistent with previous expectations, and the Hot Honey promotion exceeded expectations [46][48] Question: Restaurant closures and timing - The company expects to close 10 to 15 restaurants throughout the year, with closures spread evenly over the remaining months [49] Question: Selling expenses and media spend outlook - Management expects selling expenses to remain around $30 million for the year, with some variability quarter to quarter [71]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $392.4 million, an increase from $388.5 million in Q1 2024, primarily driven by a 3.1% increase in comparable restaurant revenue and a 6.8% increase in net menu price, despite a 3.5% decline in guest traffic [10][11] - Adjusted EBITDA for Q1 2025 was $27.9 million, an increase of $14.5 million compared to Q1 2024, attributed to cost efficiency gains and menu price increases [12] - Restaurant level operating profit as a percentage of restaurant revenue was 14.3%, an increase of 330 basis points compared to the same quarter last year [11] Business Line Data and Key Metrics Changes - The revamped Red Robin Royalty program had approximately 15.3 million members at the end of Q1 2025, contributing to increased guest engagement and frequency of visits [8] - The company has focused on operational efficiency through its managing partner program, which incentivizes restaurant leaders to achieve strong financial results [7] Market Data and Key Metrics Changes - The company anticipates comparable restaurant sales to remain generally unchanged at approximately 0% for the year, with expectations of a decline of about 3% in Q2 2025 due to headwinds from the loyalty program changes [14][16] - Guest traffic was down 3.5% in Q1 2025, with expectations of a continued decline of approximately 4% for the remainder of the year [32][34] Company Strategy and Development Direction - The company aims to strengthen its financial position by reducing debt and increasing free cash flow generation, allowing for greater flexibility in investment opportunities [22] - Key priorities for 2025 include retaining operational improvements, returning to sustainable traffic growth, and reinvesting in restaurant facilities and atmosphere [19][20] - The company is focused on enhancing guest engagement and marketing strategies to restore Red Robin as a preferred dining option [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress but acknowledged the need for continued improvement in guest experience and traffic growth [18][19] - The broader macroeconomic environment and consumer trends have led to a more cautious outlook for the remainder of the year, prompting a reduction in revenue guidance [14][15] Other Important Information - The company ended Q1 2025 with $24.2 million in cash and cash equivalents, $9.1 million in restricted cash, and $35 million available under its revolving line of credit [13] - The company plans to close 10 to 15 restaurants by the end of the year, with closures expected to be evenly spread throughout the year [48] Q&A Session Summary Question: Profitability in Q1 and maintaining guidance - Management noted that efficiency gains in labor contributed significantly to Q1 profitability, despite anticipated pressure from tariffs and traffic declines [30][31] Question: Menu price contribution throughout the year - Management expects menu price contribution to decline throughout the year, projecting about 4% check growth in Q2, 4% in Q3, and 2% in Q4 [35] Question: Loyalty program effectiveness - Management confirmed that the loyalty program is performing well, with significant opportunities for further growth and engagement [39] Question: Traffic trends and promotions - Management indicated that traffic trends are consistent with previous expectations, and the Hot Honey promotion has exceeded expectations [46][47] Question: Selling expenses and media spend outlook - Management expects selling expenses to remain around $30 million for the year, with some variability quarter to quarter [68] Question: Refinancing debt outlook - Management is optimistic about refinancing opportunities following strong Q1 results, but no specific timeline was provided [72][73]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $285.2 million compared to $309 million in Q4 2023, primarily due to a reduction in operating weeks from 13 to 12 [31] - Comparable restaurant revenue increased by 3.4%, driven by an increase in guest check average, despite a decline in guest traffic [32] - Adjusted EBITDA rose to $12.7 million, an increase of $2 million from Q4 2023, attributed to reduced selling and G&A expenses [35] - Restaurant level operating profit as a percentage of restaurant revenue was 11.5%, a decrease of 70 basis points compared to the previous year [33] Business Line Data and Key Metrics Changes - Dine-in guest satisfaction scores improved by approximately 8 percentage points compared to 2023, surpassing the casual dining average [6] - The revamped Red Robin Royalty program added approximately 1.5 million members in 2024, ending the year with about 14.9 million members [7] - Loyalty transactions increased by 13%, indicating a rise in guest frequency and new member additions [15] Market Data and Key Metrics Changes - The company experienced sequential improvement in guest traffic trends throughout 2024, indicating successful implementation of the North Star plan [32] - The West Coast market saw significant pricing adjustments, which are expected to carry over into 2025 [49] Company Strategy and Development Direction - The company aims to further improve traffic trends and operational efficiency in 2025, focusing on guest engagement and loyalty programs [12][14] - New menu items, including the Hot Honey platform, are set to launch in March 2025, with expectations for ongoing innovation throughout the year [16][17] - The company plans to close 10 to 15 underperforming restaurants over the next five years, which is expected to enhance the overall strength of its remaining portfolio [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory, highlighting the successful transformation into an operations-focused company [44] - The company anticipates modestly positive same-store sales in 2025, despite a revenue headwind from restaurant closures [39] - Management emphasized the importance of balancing pricing strategies with guest experience to drive traffic growth [50] Other Important Information - The company expects capital expenditures of $25 million to $30 million in 2025, with a focus on generating free cash flow from operations [41][92] - The company has implemented new tools and dashboards to improve operational efficiency and drive profitability [22][23] Q&A Session Summary Question: Balance between driving frequency and improving margins - Management noted that pricing adjustments were primarily made on the West Coast and that they expect to maintain a balance between traffic growth and cost management [49][50] Question: Trends in menu mix and discounts - Management expects discounts to increase year-over-year in Q1 and Q2 but normalize in Q3 and Q4, with positive trends in add-on purchases indicating consumer health [55][56] Question: Quarter-to-date trends and momentum - Management indicated a good start to the year, with expectations for same-store sales around plus three for the quarter, despite weather impacts [66] Question: Restaurant level margin improvement sources - The majority of expected margin improvements are anticipated to come from labor efficiencies rather than cost of goods sold [70] Question: Initiatives to drive takeout sales - Management expressed satisfaction with third-party sales and plans to enhance digital engagement to improve this segment [73] Question: Marketing budget and changes - The marketing budget remains similar to last year, with a focus on a comprehensive program across various channels [76] Question: Loyalty program performance - The loyalty program has seen significant growth from both new and lapsed users, contributing positively to traffic trends [84][89] Question: Expected restaurant closures and timing - Management confirmed that the expected closures are included in the guidance and will be spread throughout the year [98] Question: Commodity cost insights - The commodity basket is expected to experience standard inflation, with ground beef seeing the most significant increases [100][102]