The following is a summary of the Red Robin Gourmet Burgers, Inc. (RRGB) Q1 2024 Earnings Call Transcript:

Financial Performance:

• In Q1 2024, Red Robin reported revenues of $388.5 million, a decrease of $29.3 million from Q1 2023.

• Comparable restaurant revenue decreased by 6.5%, primarily due to the elimination of virtual brands and challenging industry conditions.

• Restaurant level operating profit was 11%, down 370 basis points from Q1 2023, with investments in labor and food quality impacting margins.

• Adjusted EBITDA was $12.2 million, influenced by strategic investments, top line headwinds, and increased selling costs.

Business Progress:

• Red Robin continues to progress on its North Star Five-Point plan aimed at operational focus, enhancing guest experience, reducing costs, optimizing guest engagement, and driving growth.

• Investments in operations include adding servers and kitchen managers, upgrading kitchen equipment, and introducing new gourmet burgers.

• The company has launched a new marketing strategy and revamped its loyalty program to improve guest engagement and visit frequency.

Opportunities:

• Red Robin focuses on enhancing guest experience and operational efficiency through its North Star Five-Point plan.

• The revamped loyalty program and new marketing strategies are expected to drive traffic and improve customer retention.

• Continued investments in operations and food quality are aimed at boosting competitiveness and customer satisfaction.

Risks:

• The elimination of virtual brands and challenging industry conditions pose risks to sales and revenue.

• Investments in labor and food quality, while foundational for long-term growth, currently pressure profit margins.

More details: Red Robin IR

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