Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Reporting

v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 29, 2024
Segment Reporting [Abstract]  
Segment Reporting
17. Segment Reporting
In accordance with Segment Reporting, the Company uses the management approach for determining its reportable segments. The management approach is based upon the way that management reviews performance and allocates resources.
The Company has one operating and one reportable segment: restaurants. We manage our business activities on a consolidated basis, as Red Robin restaurants all have similar customers, sell similar products, and have a similar process to sell those products. We primarily derive our revenue in the United States through the sale of food and beverage through its Company-owned locations as well as earn franchise fees from franchise restaurants. The accounting policies of the restaurant segment are the same as those described in Note 1. Description of Business and Summary of Significant Accounting Policies.
Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer. The Company measures segment profit using consolidated Net income (loss). The CODM uses consolidated Net income (loss), as reported on our Consolidated Statements of Operations and Comprehensive Loss, in deciding whether to reinvest excess cash flow into the restaurant segment or into other parts of the Company. The CODM does not review assets in evaluating the results of the restaurant segment, and therefore, such information is not presented.
Financial information for the Company's reportable segment is as follows (in thousands):
Year Ended
December 29, 2024 December 31, 2023 December 25, 2022
Revenues:
Restaurant revenue $ 1,224,254  $ 1,274,294  $ 1,230,189 
Franchise revenue 14,941  15,867  19,306 
Other revenue 9,365  12,885  16,039 
Total revenues 1,248,560  1,303,046  1,265,534 
Costs and expenses:
Cost of sales
 292,392  308,962  306,509 
Labor 479,631  473,538  440,564 
Other operating
 216,242  224,999  224,704 
Occupancy 103,359  102,761  98,868 
General and administrative expenses 81,721  89,360  84,912 
Selling 36,719  34,770  51,700 
Other segment items(1)
33,848  (2,076) 39,529 
Depreciation and amortization
 57,729  66,190  76,245 
Interest expense, net and other
 24,550  25,460  20,639 
Income tax expense (benefit)
 (90) 310  747 
Segment net income (loss)
 $ (77,541) $ (21,228) $ (78,883)
(1) Other segment items consists primarily of impairment and other charges (gains) and pre-opening costs.