Red Robin: Reported Results for Fiscal Q2-2021

Greenwood Village / CO. (rrgb) Red Robin Gourmet Burgers Inc., a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, reported financial results for the quarter ended July 11, 2021. Key highlights:

  • Restaurant revenue of USD 272.2 million and Restaurant Level Operating Profit as a percentage of restaurant revenue (a non-GAAP metric) of 15.7 percent;
  • Second quarter 2021 comparable restaurant revenue(1) increased 66.3 percent over the same period in 2020, and decreased 2.4 percent compared to the same period in 2019;
  • Average weekly sales per fiscal period grew by a total of USD 2,503 during the second quarter of 2021;
  • Off-premises sales comprised 32.8 percent, 63.8 percent and 12.5 percent of total food and beverage sales for the second quarters of 2021, 2020 and 2019, respectively;
  • By the end of the second fiscal quarter, restaurants that were able to operate at 100 percent indoor dining capacity and with full hours delivered a comparable restaurant revenue increase of 7.0 percent compared to 2019 and restaurant margin of 19.5 percent, representing an increase of 1.8 percent compared to 2019; and,
  • Restaurants that offered «Donatos» pizza outperformed the rest of the system by 550 basis points as compared to 2019 and outperformed our original restaurant sales growth target by 250 basis points. «Donatos» pizza generated sales of USD 2.9 million dollars in the second quarter of 2021.

Paul J. B. Murphy III, Red Robin’s President and Chief Executive Officer, said, «While we have reasons to be optimistic about the recovery, overall performance in the second quarter was below our expectation. Contributing factors included ongoing jurisdictional restrictions and challenging labour availability which resulted in reduced operating hours to ensure a quality Guest experience and reduce impact on our restaurant management teams. Notably, we generated strong sales and margins at restaurants where staffing levels supported elevated traffic compared to 2019. Specific initiatives that are addressing our staffing needs include national hiring events, technology enhancements to the application and hiring processes, and incremental hiring and training resources to grow staffing levels above 2019.»

Murphy continued, «Off-premises sales are holding at roughly a third of total sales mix, more than double pre-pandemic levels, demonstrating that Guests are enjoying the convenience of take-out and delivery even as dining room sales recover. While we continue to monitor developments regarding the COVID-19 variants, at this time we remain confident that we can capture heightened demand with full capacity, and restored staffing and operating hours, providing substantial opportunity for additional sales. Importantly, our conviction that «Donatos» will be a long-term growth driver is stronger than ever, with sales exceeding expectations and positioning Red Robin to deliver annual pizza sales of over USD 60 million and profitability of over USD 25 million by 2023.»

For additional information please read the Company’s PDF file below (85 KB):

20210819-RED-ROBIN-Q2-2021
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