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 and year ended December 27, 2020.
Fourth Quarter 2020 Financial Summary Compared to Fourth Quarter 2019
- Total revenues were USD 201.1 million, a decrease of 33.6 percent, primarily due to the impacts of the Covid-19 pandemic including related state and local dining room restrictions;
- Comparable restaurant revenue decreased 29.0 percent;
- Off-premise sales increased 131.8 percent and comprised 43.9 percent of total food and beverage sales, with approximately 80 percent of off-premise orders driven through digital channels;
- Net loss was USD 39.3 million compared to net loss of USD 7.7 million;
- GAAP loss per diluted share was USD 2.53 compared to GAAP loss per diluted share of USD 0.60;
- Adjusted loss per diluted share was USD 1.79 compared to adjusted loss per diluted share of USD 0.36 (see Schedule I);
- Adjusted Ebitda was a loss of USD 6.4 million compared to adjusted Ebitda of USD 26.7 million (see Schedule III); and
- The Company received USD 49.4 million in cash tax refunds, including interest, and expects to generate approximately USD 16 million of additional cash refunds within the next twelve months.
Paul J. B. Murphy III, Red Robin’s President and Chief Executive Officer, said, «2020 was a challenging year for our Team Members, for the Communities and Guests that we serve, and for our business. However, not only did Red Robin persevere, we took advantage of the opportunity created by the pandemic to improve our Guest experience and strengthen our enterprise business model. We implemented our Total Guest Experience hospitality model, optimized our management labor structure, simplified our menu, and renegotiated our lease portfolio, all of which will enable us to generate more than 100 basis points of incremental enterprise-level margin improvement when we return to pre-Covid sales volumes. In the first quarter of 2021, we also secured a second amendment to our credit facility, which provides increased near-term flexibility as we continue to de-lever our balance sheet and strategically position the brand for the future.»
Murphy concluded, «There is no doubt that increased dining restrictions during the fourth quarter in California, Colorado, Oregon, and Washington had a significant, negative impact to our topline momentum. However, we are bullish as we look to the future reopening of these markets, which represented almost 40 percent of our 2019 restaurant sales. We are very encouraged by our recent sales trajectory, and as capacity restrictions loosen in these Western markets, we believe our geographic mix will drive sales growth that outpaces the industry. In addition, we are confident that the continued rollout of Donatos®, which we expect will generate over USD 60 million in annual pizza sales by 2023, higher off-premise sales, record Guest satisfaction scores, and other Company sales drivers will augment our strengthening business results and create and grow long-term value for our shareholders.»
For additional information please read the Company’s PDF file below (90 KB):20210303-RED-ROBIN-Q4-2020