Exhibit 99.1
Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Fourth Quarter and Fiscal Year Ended December 31, 2023
1.6% increase in fiscal 2023 comparable restaurant revenue
$57.7 million improvement in net loss and a 33% increase in Adjusted EBITDA during fiscal 2023


Englewood, CO – February 28, 2024 – Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the fiscal fourth quarter and year ended December 31, 2023.
Highlights for the Fourth Quarter Fiscal of 2023 Compared to the Fourth Quarter Fiscal of 2022:
•Total revenues are $309.0 million, an increase of $19.4 million, inclusive of an additional week in the quarter.
•Comparable restaurant revenue(1) decreased 2.7%.
•Net loss is $13.7 million, an improvement of $31.0 million from a net loss of $44.7 million during the same period of 2022.
•Adjusted EBITDA(2) is $10.6 million, a 26% increase.
Highlights for Fiscal 2023 Compared to Fiscal 2022:
•Total revenues are $1.3 billion, an increase of $37.5 million.
•The fifty-third week in 2023 contributed $24.5 million of restaurant revenue.
•Comparable restaurant revenue(1) increased 1.6%.
•Net loss is $21.2 million, an improvement of $57.7 million from a net loss of $78.9 million during 2022.
•Adjusted EBITDA(2) is $68.9 million, a 33% increase.
•Completed two Sale-Leaseback transactions, generating net proceeds of $58.8 million and a gain, net of expenses of $29.4 million.
•Repaid $24.9 million of debt and repurchased $10.0 million of stock.
(1)    Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated five full quarters as of the 52 weeks ending December 24, 2023. The comparable restaurant base includes 408 and 406 restaurants in the fourth quarter and full year, respectively, out of the total 415 Company-owned restaurants.
(2)    See below for a reconciliation of adjusted EBITDA, a non-GAAP measure, to Net loss.
G.J. Hart, Red Robin’s President and Chief Executive Officer said, “2023 was a successful transformational year for our iconic brand. Operationally, we made significant investments in what we serve and how we serve it to ensure the Guest experience at Red Robin is a memorable one and we continue to receive positive feedback from Guests. Financially, we made substantial progress by delivering a 1.6% increase in comparable restaurant revenue, a 33% increase in Adjusted EBITDA, and we strengthened our balance sheet by completing two tranches of sale-leaseback transactions to reduce our long-term debt by almost $25 million dollars.”
Hart concluded, “While we have made significant progress across all points of our North Star Plan, 2023 was only the first step of our multi-year strategy. In 2024 we expect continued operational execution of a great Guest experience, additional marketing support and new campaigns to communicate the upgrades we have made, the launch of our new loyalty program, and aligning incentives under our Partner compensation model, will accelerate our path to achieve our goal - to bring Guests back into our restaurants for connection over craveable food that only Red Robin can provide.”
Fourth Quarter and Full Year 2023 Financial Summary Compared to 2022:
The following table presents financial results for the fiscal fourth quarter and full year of 2023, compared to results from the same period in 2022:


Thirteen Weeks EndedTwelve Weeks EndedFifty-Three Weeks EndedFifty-Two Weeks Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
Total revenues (millions)$309.0 $289.6 $1,303.0 $1,265.5 
Restaurant revenues (millions)301.0 278.6 $1,274.3 $1,230.2 
Net loss (millions)(13.7)(44.7)$(21.2)$(78.9)
Income (loss) from operations (millions)(8.0)(39.9)$4.5 $(57.5)
Income (loss) from operations as a percent of total revenues(2.6)%(13.8)%0.3 %(4.5)%
Restaurant Level Operating Profit (millions)(1)
$36.8 $31.6 $164.0 $159.5 
Restaurant Level Operating Profit Margin(1)
12.2 %11.3 %12.9 %13.0 %
Adjusted EBITDA (millions)(2)
$10.6 $8.4 $68.9 $51.7 
Net loss per diluted share ($ per share)$(0.87)$(2.81)$(1.34)$(4.98)
Adjusted loss per diluted share ($ per share)(3)
$(0.66)$(1.38)$(1.44)$(3.32)
(1)    See Schedule II for a reconciliation of Restaurant Level Operating Profit and Restaurant Level Operating Profit Margin, non-GAAP measures, to Income (loss) from operations and Income (loss) from operations as a percentage of total revenues, respectively.
(2)    See Schedule III for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to Net income (loss).
(3)    See Schedule I for a reconciliation of Adjusted income (loss) per diluted share, a non-GAAP measure, to Net income (loss) per diluted share.
Balance Sheet and Liquidity
As of December 31, 2023, the Company had outstanding borrowings under its credit facility of $189.1 million, in addition to amounts issued under letters of credit of $7.7 million, and liquidity of approximately $48.6 million including cash and cash equivalents and available borrowing capacity under its credit facility.
Sale-Leaseback Update
The Company anticipates it will complete a Sale-Leaseback transaction to sell and simultaneously lease-back from eight (8) to eleven (11) owned properties during the first quarter of fiscal 2024. Red Robin expects the transaction to generate gross proceeds of $20 million to $26 million and to use net proceeds from the transaction to repay debt.
Outlook for Fiscal 2024 and Guidance Policy
The Company provides guidance of select information related to the Company’s financial and operating performance, and such measures may differ from year to year. The projections are as of this date and the Company assumes no obligation to update or supplement this information.
The Company's Fiscal 2024 guidance metrics are as follows:
•Total revenue of $1.250 billion to $1.275 billion, including comparable restaurant revenue of a low single digit percentage decline.
•Restaurant level operating profit(1) of 12.5% to 13.5%, inclusive of investments in the Guest experience and rent expenses related to the sale leaseback transactions;
•Adjusted EBITDA of $60 million to $70 million(1);
•Capital expenditures of $25 million to $35 million.
Fiscal 2024 includes 52 weeks versus 53 weeks in fiscal 2023.
(1)    The Company has not provided a reconciliation of its Restaurant Level Operating Profit or Adjusted EBITDA outlook to the most comparable GAAP measure of Income (loss) from operations and Net income (loss), respectively. Providing Income (loss) from operations and Net Income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in Income from operations and Net income (loss), including asset impairments, gains (losses) on asset dispositions and income tax valuation adjustments. The reconciliations of Restaurant Level Operating Profit and Adjusted EBITDA to Income (loss) from operations and Net income (loss), respectively, for the historical periods presented herein is indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance. Please refer to the historical period Reconciliation of Income (loss) from operations to Restaurant Level Operating Profit and Net income (loss) to EBITDA and Adjusted EBITDA included on Schedule II and Schedule III of this release, respectively.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its fourth quarter and full year 2023 results, and outlook for fiscal 2024 today at 4:30 p.m. ET. The conference call can be accessed live over the phone by dialing 201-689-8560 which will be answered by an operator or by clicking Call Me. The conference call should be accessed at least 10 minutes prior to its scheduled start.
A replay will be available from approximately two hours after the end of the call and can be accessed by dialing 412-317-6671; the conference ID is 13744318. The replay will be available through March 6, 2024.
The call will be webcast live and later archived from the Company’s Investor Relations website.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)


Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to Guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos® pizza at select locations. It's now easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering, or you can download our new app for easy customization, access to the Red Robin Royalty® dashboard and more. There are more than 500 Red Robin restaurants across the United States and Canada, including those operating under franchise agreements. Red Robin… YUMMM®!
Forward-Looking Statements
Forward-looking statements in this press release regarding the Company's future performance; the implementation of the Company’s “North Star” plan and the anticipated impacts thereof; the completion of the Sale-Leaseback transaction and anticipated use of proceeds of such transaction; our new marketing program; the launch of our new loyalty program; operations simplification efforts; cost savings; our ability to drive traffic and bring Guests into the restaurant; efforts to grow sales; our ability to build upon investments and transformational changes, including product and menu enhancements and changes to the staffing model and compensation programs; anticipated uses of capital and planned investments; and statements under the heading “Outlook for Fiscal 2024 and Guidance Policy,” including with respect to total revenue, comparable restaurant revenue, restaurant level operating profit, selling, general and administrative costs, capital expenditures and Adjusted EBITDA; and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as "expect," "believe," "anticipate," "intend," "plan," "project," "could," "should," "will," "outlook" or "estimate," or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to the following: the effectiveness of the Company's strategic initiatives, including our “North Star” plan, labor and service models, and operational improvement initiatives and our ability to execute on such strategic initiatives; the global and domestic economic and geopolitical environment; our ability to effectively compete in the industry and attract and retain Guests; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; a privacy or security breach or a failure of our information technology systems; the effectiveness and timing of the Company's marketing and branding strategies, including the loyalty program and social media platforms; changes in consumer preferences; leasing space including and the location of such leases in areas of declining traffic; changes in cost and availability of commodities; interruptions in the delivery of food and other products from third parties; pricing increases and labor costs; changes in consumer behavior or preference; expanding our restaurant base; maintaining and improving our existing restaurants; the transition and retention of our key personnel; our ability to recruit, staff, train, and retain our workforce; operating conditions, including adverse weather conditions, natural disasters, pandemics and other events affecting the regions where our restaurants are operated; actions taken by our franchisees that could harm our business or reputation; negative publicity regarding food safety or health concerns; protection of our intellectual property rights; changes in federal, state, or local laws and regulations affecting the operation of our restaurants; and an increase in litigation or legal claims by team members, franchisees, customers, vendors, stockholders. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements and risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.
For media relations questions contact:
Kathleen Bush, Red Robin Gourmet Burgers, Inc.
kbush@redrobin.com
(303) 846-5114
For investor relations questions contact:
Jeff Priester, ICR
jeff.priester@icrinc.com
(332) 242-4370
Comparable Restaurant Revenue
The following table presents the comparable restaurant revenue in each quarter and the Full Year ("FY") total for fiscal 2023 compared to results from the same period in 2022:


Comparable Restaurant Increase (Decrease) Over Prior Year
Q1 2023
Q2 2023
Q3 2023
Q4 2023
FY 2023
Guest Traffic0.6 %(6.0)%(10.4)%(7.6)%(5.2)%
Average Guest Check
Menu Price Increase7.2 %8.8 %7.7 %6.3 %7.5 %
Menu Mix0.8 %(2.1)%(2.8)%(2.4)%(1.6)%
Discounts— %0.8 %2.1 %1.0 %0.9 %
Total Guest Check8.0 %7.5 %7.0 %4.9 %6.8 %
Total Change in Comparable Restaurant Revenue8.6 %1.5 %(3.4)%(2.7)%1.6 %


RED ROBIN GOURMET BURGERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Thirteen Weeks EndedTwelve Weeks EndedFifty-Three Weeks EndedFifty-Two Weeks Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
Revenues:
Restaurant revenue$300,987 $278,556 $1,274,294 $1,230,189 
Franchise royalties, fees, and other revenue8,038 11,044 28,752 35,345 
Total revenues309,025 289,600 1,303,046 1,265,534 
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales72,791 72,226 308,962 306,509 
Labor114,697 100,292 473,538 440,564 
Other operating50,755 51,979 224,999 224,704 
Occupancy25,955 22,462 102,761 98,868 
Depreciation and amortization13,938 17,321 66,190 76,245 
General and administrative22,703 20,246 89,360 84,912 
Selling12,078 14,198 34,770 51,700 
Pre-opening costs2 55 587 568 
Other charges, net4,063 30,725 (2,663)38,961 
Total costs and expenses316,982 329,504 1,298,504 1,323,031 
Income (loss) from operations(7,957)(39,904)4,542 (57,497)
Other expense:
Interest expense, net and other5,919 4,487 25,460 20,639 
Loss before income taxes(13,876)(44,391)(20,918)(78,136)
Income tax provision (benefit)(143)294 310 747 
Net loss$(13,733)$(44,685)$(21,228)$(78,883)
Loss per share:
Basic$(0.87)$(2.81)$(1.34)$(4.98)
Diluted$(0.87)$(2.81)$(1.34)$(4.98)
Weighted average shares outstanding:
Basic15,806 15,922 15,835 15,840 
Diluted15,806 15,922 15,835 15,840 



RED ROBIN GOURMET BURGERS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
December 31, 2023December 25, 2022
Assets:
Current assets:
Cash and cash equivalents$23,634 $48,826 
Accounts receivable, net21,592 21,989 
Inventories26,839 26,447 
Prepaid expenses and other current assets11,785 12,938 
Restricted cash7,931 9,380 
Total current assets91,781 119,580 
Property and equipment, net261,258 318,517 
Operating lease assets, net361,609 361,432 
Intangible assets, net15,491 17,727 
Other assets, net11,795 14,889 
Total assets$741,934 $832,145 
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable$27,726 $39,336 
Accrued payroll and payroll-related liabilities32,524 33,666 
Unearned revenue36,067 46,944 
Current portion of operating lease obligations43,819 47,394 
Current portion of long-term debt— 3,375 
Accrued liabilities and other46,201 49,498 
Total current liabilities186,337 220,213 
Long-term debt182,594 203,155 
Long-term portion of operating lease obligations383,439 393,157 
Other non-current liabilities10,006 13,831 
Total liabilities762,376 830,356 
Stockholders' equity:
Common stock; $0.001 par value: 45,000 shares authorized; 20,449 shares issued; 15,528 and 15,934 shares outstanding as of December 31, 2023 and December 25, 2022
20 20 
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and December 25, 2022
— — 
Treasury stock 4,921 and 4,515 shares, at cost as of December 31, 2023 and December 25, 2022
(174,702)(182,810)
Paid-in capital229,680 238,803 
Accumulated other comprehensive loss, net of tax(22)(34)
Accumulated deficit(75,418)(54,190)
Total stockholders' equity(20,442)1,789 
Total liabilities and stockholders' equity$741,934 $832,145 


Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally Accepted Accounting Principles ("GAAP") throughout this press release, the Company has provided Adjusted EBITDA, Adjusted net income (loss) and Adjusted net income (loss) per share - diluted, which are non-GAAP measurements. We define EBITDA as net income (loss) before interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA, Adjusted net income (loss) and Adjusted net income (loss) per share-diluted are supplemental measures of our performance that are not required by or presented in accordance with GAAP. We believe these non-GAAP measures give the reader additional insight into the ongoing operational results of the Company, and are intended to supplement the presentation of the Company's financial results in accordance with GAAP. Adjusted EBITDA, Adjusted net income (loss) and Adjusted net income (loss) per share-diluted exclude the impact of non-operating or nonrecurring items including changes in estimate, asset impairments, litigation contingencies, gains (losses) on debt extinguishment, restaurant and office closure costs, gains on sale leaseback transactions, severance and executive transition costs and other non-recurring, non-cash or discrete items; net of income tax impacts. Other companies may define these non-GAAP measures differently, and as a result may not be directly comparable to those of other companies. Management believes this supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein.
The Company believes restaurant level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant level operating efficiency and performance. The Company defines restaurant level operating profit to be income from operations less franchise royalties, fees and other revenue, plus other charges (gains), net, pre-opening costs, selling costs, general and administrative expenses, and depreciation and amortization. The measure includes restaurant level occupancy costs that include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes costs associated with selling, general, and administrative functions, pre-opening costs, as well as, other charges (gains), net because these costs are non-operating or nonrecurring and therefore not related to the ongoing operations of its restaurants. Restaurant level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income (loss) from operations as an indicator of financial performance. Restaurant level operating profit as presented may not be comparable to other similarly titled measures of other companies in the Company's industry.


Schedule I
Reconciliation of Net income (loss) to Non-GAAP Adjusted Net income (loss) and Adjusted income (loss) per share - diluted
(In thousands, except per share data, unaudited)
Thirteen Weeks EndedTwelve Weeks EndedFifty-Three Weeks EndedFifty-Two Weeks Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
Net loss as reported$(13,733)$(44,685)$(21,228)$(78,883)
Gift card breakage(1)
480 — 480 (5,246)
Write-off of unamortized debt issuance costs(2)
— — — 1,727 
Other charges, net:
Asset impairment1,942 25,486 9,130 38,534 
Gain on sale of restaurant property, net(129)— (29,543)(9,204)
Severance and executive transition224 326 3,419 2,280 
Other financing costs(3)
— 70 — 1,462 
Restaurant closure costs, net1,516 519 3,062 828 
Closed corporate office costs, net of sublease income162 209 416 475 
Litigation contingencies— 4,101 9,140 4,148 
Asset disposal and other
348 14 1,713 438 
Income tax effect(1,181)(7,989)568 (9,215)
Adjusted net loss$(10,371)$(21,949)$(22,843)$(52,656)
Diluted loss per share:
Net loss as reported$(0.87)$(2.81)$(1.34)$(4.98)
Gift card breakage0.03 — 0.03 (0.33)
Write-off of unamortized debt issuance costs— — — 0.11 
Other charges (gains), net:
Asset impairment0.12 1.60 0.58 2.43 
Gain on sale of restaurant property, net(0.01)— (1.87)(0.58)
Severance and executive transition0.01 0.02 0.22 0.14 
Other financing costs— — — 0.09 
Restaurant closure costs, net0.10 0.03 0.19 0.05 
Closed corporate office costs, net of sublease income0.01 0.01 0.03 0.03 
Litigation contingencies— 0.26 0.58 0.26 
Asset disposal and other0.02 0.01 0.11 0.03 
Income tax effect(0.07)(0.50)0.04 (0.58)
Adjusted loss per share - diluted$(0.66)$(1.38)$(1.44)$(3.32)
Weighted average shares outstanding:
Basic15,806 15,922 15,835 15,840 
Diluted(4)
15,806 15,922 15,835 15,840 
(1)    During 2022, the Company re-evaluated the estimated redemption pattern related to gift cards. The impact of this change in estimate comprised $5.9 million included in Other revenue, partially offset by $0.6 million in gift card commission costs included in Selling, general, and administrative expenses on the Consolidated Statements of Operations.
(2)     During 2022, the Company completed the refinancing of our Credit Facility and reported a non-cash charge associated with the write-off of unamortized debt issuance costs related to the remaining unamortized debt issuance costs.
(3)    Other financing costs includes legal and other charges related to the refinancing of our Credit Facility in 2022.
(4)    The impact of dilutive shares is excluded due to the reported net loss for all periods presented.


Schedule II
Reconciliation of Income (Loss) from Operations to Non-GAAP Restaurant-Level Operating Profit
(In thousands, unaudited)
Thirteen Weeks EndedTwelve Weeks EndedFifty-Three Weeks EndedFifty-Two Weeks Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
Income (loss) from operations$(7,957)(2.6)%$(39,904)(13.8)%$4,542 0.3%$(57,497)(4.5)%
Less:
Franchise royalties, fees and other revenue8,038 2.6%11,044 3.8%28,752 2.2%35,345 2.8%
Add:
Other charges, net4,063 1.330,725 10.6(2,663)(0.2)38,961 3.1
Pre-opening costs2 —55 —587 —568 —
Selling12,078 3.914,198 4.934,770 2.751,700 4.1
General and administrative expenses22,703 7.320,246 7.089,360 6.984,912 6.7
Depreciation and amortization13,938 4.517,321 6.066,190 5.176,245 6.0
Restaurant-level operating profit$36,789 12.2%$31,597 11.3%$164,034 12.9%$159,544 13.0%
Income (loss) from operations as a percentage of total revenues(2.6)%(13.8)%0.3%(4.5)%
Restaurant-level operating profit margin (as a percentage of restaurant revenue)12.2%11.3%12.9%13.0%



Schedule III
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
(In thousands, unaudited)
Thirteen Weeks EndedTwelve Weeks EndedFifty-Three Weeks EndedFifty-Two Weeks Ended
December 31, 2023December 25, 2022December 31, 2023December 25, 2022
Net loss as reported$(13,733)$(44,685)$(21,228)$(78,883)
Interest expense, net6,030 4,745 25,796 19,882 
Income tax provision (benefit)(143)294 310 747 
Depreciation and amortization13,938 17,321 66,190 76,245 
EBITDA6,092 (22,325)71,068 17,991 
Gift card breakage(1)
480 — 480 (5,246)
Other charges, net:
Asset impairment1,942 25,486 9,130 38,534 
Gain on sale of restaurant property, net(129)— (29,543)(9,204)
Severance and executive transition224 326 3,419 2,280 
Other financing costs(2)
— 70 — 1,462 
Restaurant closure costs1,516 519 3,062 828 
Closed corporate office costs, net of sublease income162 209 416 475 
Litigation contingencies— 4,101 9,140 4,148 
Asset disposal and other348 14 1,713 438 
Adjusted EBITDA$10,635 $8,400 $68,885 $51,706 
(1)    During 2022, the Company re-evaluated the estimated redemption pattern related to gift cards. The impact of this change in estimate comprised $5.9 million included in Other revenue, partially offset by $0.6 million in gift card commission costs included in Selling, general, and administrative expenses on the Consolidated Statements of Operations.
(2)    Other financing costs includes legal and other charges related to the refinancing of our Credit Facility in 2022.