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Red Robin's Fiscal First Quarter Performance

Englewood, Colorado - In a much-anticipated announcement, Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) declared its financial results for the first quarter ended April 20, 2025. The iconic full-service restaurant chain, renowned for its gourmet burgers and family-friendly ambiance, has showcased a remarkable turnaround in performance over the past year.

Key Highlights

1. Revenue Growth: The total revenues for the first quarter reached $392.4 million, reflecting an increase of $3.8 million from the same period last year.
2. Restaurant Revenue Surge: Comparable restaurant revenue surged by 3.1% despite challenges posed by fluctuating guest traffic.
3. Net Income Improvement: Net income reported was $1.2 million, marking a significant rebound from a net loss of $9.5 million in the previous year, representing a $10.7 million shift.
4. Adjusted EBITDA: The company's adjusted EBITDA skyrocketed to $27.9 million, an astonishing 108.2% increase from last year’s figures, indicating effective cost management and operational efficiencies.
5. Strategic Asset Sales: During the quarter, Red Robin completed the sale of three owned properties for gross proceeds of $5.8 million, significantly contributing to reducing long-term debt by $17.8 million.

Comments from Leadership

CEO David Pace expressed optimism regarding the strong start to the fiscal year, stating, “We are pleased with our strong start to the year as we delivered increases in both sales and profits during the first quarter.” He attributed these results to investments in food quality and hospitality made over the past few years, adding, “Nevertheless, we are far from claiming victory. There is still more work to be done as we continue the comeback journey of this beloved brand.”

Strategic Focus Areas

Looking ahead, Pace laid out four strategic priorities for the company:

• - Enhancing operational execution and guest experience
• - Restoring sustainable traffic growth through refined marketing strategies
• - Fortifying the financial position by managing debt and increasing cash flow
• - Re-investing in restaurant facilities to ensure they reflect the upgraded food quality and dining experience

Financial Summary

Balance Sheet Insights

As of April 20, 2025, Red Robin’s outstanding borrowings under its credit facility were $171.7 million, a decrease from late 2024. Liquidity stood at approximately $59.2 million, reflecting reasonable cash management tactics that have bolstered the company’s financial stability.

Outlook for 2025

Red Robin's outlook for the remainder of fiscal 2025 suggests sustained momentum despite some anticipated challenges, such as headwinds in comparable restaurant revenue due to non-recurring benefits from the loyalty program last year. The company has set projections for total revenue to range between $1.21 to $1.23 billion, with an expected adjusted EBITDA of $60 to $65 million.

Conclusion

The latest numbers from Red Robin indicate a positive trajectory, backed by strategic growth, improved financial health, and a robust commitment to enhancing customer experience. With continued focus on operational excellence and aggressive marketing, Red Robin aims to reinforce its position as a market leader in the casual dining segment. As always, fans of the brand can look forward to more gourmet dining experiences ahead, as Red Robin continues its journey to reclaim its place as a favored dining destination.

The company will host an investor conference call to delve deeper into these results, allowing stakeholders and analysts to gather insights into the company’s performance and strategic direction for the future.