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Red Robin’s Preliminary Fourth Quarter Results for 2024

In a recent press release, Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) announced its preliminary revenue results for the fourth quarter ending December 29, 2024. Despite facing a decline compared to the previous year, the company demonstrated resilience, particularly in comparable restaurant revenue, which achieved a notable growth of 3.4% when excluding the impacts of deferred loyalty revenue.

Financial Highlights

The total revenue for the fourth quarter is projected to reach approximately $285.2 million, reflecting a $23.8 million decrease from the previous year. This decline can largely be attributed to the operational calendar, as the fourth quarter of 2024 comprised 12 weeks of operations, in contrast to 13 weeks in the fourth quarter of 2023. Restaurant revenue was estimated at around $280.6 million, and franchise royalties along with additional revenues accounted for approximately $4.6 million.

G.J. Hart, President and CEO of Red Robin, expressed optimism regarding the company’s performance, remarking, "We expect our fourth quarter comparable restaurant revenue growth will beat our prior expectations. The momentum we experienced at the beginning of the quarter accelerated through year-end. This success can be attributed to the positive reception of our relaunched loyalty program and targeted promotional offers."

Strategic Initiatives

Hart elaborated on the company's strategic initiatives that bolstered revenue. The newly relaunched loyalty program is making strides in attracting both new and returning customers. Simultaneously, the 'Appointment Dining' promotions are designed to offer select, enticing deals on specific days of the week, successfully driving customer traffic during peak hours. Hart stated, "These initiatives are driving new and lapsed guests back into Red Robin restaurants to experience the enhancements we have made to both food quality and hospitality."

In the first two weeks of January 2025, Red Robin continued to experience strong growth in comparable restaurant revenue, signaling a successful start to the new year. Hart also took the moment to express gratitude to the over 20,000 team members nationwide for their dedication to providing excellent guest experiences.

Looking Ahead

It is essential to mention that the financial results presented are preliminary and unaudited, pending the conclusion of standard year-end accounting practices. Finalized financial statements for the fourth quarter and the entire fiscal year will be disclosed by February 2025.

As a beloved casual dining chain founded in 1969, Red Robin boasts approximately 500 locations across the United States and Canada. The company's menu not only features a wide variety of gourmet burgers but also includes salads, appetizers, entrees, and desserts, promising a casual and enjoyable dining experience for individuals and families alike. With options for online ordering, delivery, and catering, Red Robin continues to innovate and adapt to consumer preferences, solidifying its position in the competitive restaurant industry.

As Red Robin moves forward, it will be crucial for the company to maintain effective management of its restaurant operations while driving guest engagement through marketing strategies and quality improvements. As evident from their latest report, the focus on enhancing customer satisfaction through service and product quality remains at the forefront of Red Robin's business strategy as they navigate the dynamics of the restaurant landscape.