Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Second Quarter Ended July 9, 2023
Total revenues are $298.6 million, an increase of $4.6 million compared to 2022.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB), 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 second quarter ended July 9, 2023.
Highlights for the Second Quarter of Fiscal 2023, Compared to the Second Quarter of Fiscal 2022:
- Total revenues are $298.6 million, an increase of $4.6 million compared to 2022.
- Comparable restaurant revenue(1) increased 1.5%.
- Tenth consecutive quarter of comparable restaurant revenue(1) growth.
- Comparable restaurant dine-in sales(2) increased 5.9%.
- Net income is $3.9 million, an increase of $21.9 million compared to 2022.
- Adjusted EBITDA(3) (a non-GAAP metric) is $15.5 million, a $3.7 million increase compared to 2022.
- Completed Sale-Leaseback transaction for nine restaurants, generating net proceeds of approximately $28.5 million and a gain, net of expenses of $14.6 million.
- Repaid $15.5 million of debt and repurchased $5.0 million of stock.
Highlights for the Year to Date Period of Fiscal 2023, Compared to the Year to Date Period of Fiscal 2022:
- Total revenues are $716.5 million, an increase of $27.3 million compared to 2022.
- Comparable restaurant revenue(1) increased 5.5%.
- Comparable restaurant dine-in sales(2) increased 11.8%.
- Net income is $0.7 million, an increase of $22.2 million compared to 2022.
- Adjusted EBITDA(3) (a non-GAAP metric) is $51.5 million, an $11.6 million increase compared to 2022.
| (1) | Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated five full quarters as of the end of the period presented. |
| (2) | Comparable restaurant dine-in sales are calculated based on the Company’s point-of-sale sales data, which does not include adjustments for loyalty breakage. |
| (3) | See Schedule III for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to Net income (loss). |
G.J. Hart, Red Robin’s President and Chief Executive Officer said, "In the first half of 2023, we began executing the North Star plan by investing in our people, food, and hospitality. We are pleased with our traction so far, the clear improvement in guest satisfaction, and reinvigorated financial performance. Adjusted EBITDA is $51.5 million in just the first half of 2023, compared to $52.1 million in the entire year of 2022. The meaningful changes we have implemented are delivering on our promises to team members, guests, and investors. While we are in the early stages of the comeback of this iconic brand, we are confident in our strategic direction and see tremendous runway ahead."
Second Quarter 2023 Financial Summary
The following table presents financial results for the second fiscal quarter of 2023, compared to results from the same period in 2022:
|
|
| Twelve Weeks Ended | |||||||
|
|
| July 9, 2023 |
| July 10, 2022 |
| ||||
| Total revenues (millions) |
| $ | 298.6 |
|
| $ | 294.1 |
|
|
| Restaurant revenues (millions) |
|
| 293.3 |
|
|
| 288.6 |
|
|
| Net income (loss) (millions) |
|
| 3.9 |
|
|
| (18.0 | ) |
|
| Income (loss) from operations (millions) |
|
| 10.3 |
|
|
| (13.4 | ) |
|
| Income (loss) from operations as a percent of total revenues |
|
| 3.4 | % |
|
| (4.6 | )% |
|
| Restaurant Level Operating Profit (millions)(1) |
| $ | 36.9 |
|
| $ | 39.3 |
|
|
| Restaurant Level Operating Profit Margin(1) |
|
| 12.6 | % |
|
| 13.6 | % |
|
| Adjusted EBITDA (millions)(2) |
| $ | 15.5 |
|
| $ | 11.9 |
|
|
|
|
|
|
|
|
| ||||
| Net income (loss) per diluted share ($ per share) |
| $ | 0.24 |
|
| $ | (1.13 | ) |
|
| Adjusted income (loss) per diluted share ($ per share)(3) |
| $ | (0.24 | ) |
| $ | (0.75 | ) |
|
|
|
|
|
|
|
| ||||
| (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 July 9, 2023, Red Robin had outstanding borrowings under its credit facility of $197.5 million, in addition to amounts issued under letters of credit of $11.7 million, and liquidity of approximately $69.0 million, including cash and cash equivalents and available borrowing capacity under its credit facility.
Share Repurchase Activity
During the second quarter of fiscal 2023, the Company repurchased 382,017 shares of stock under its existing $75 million share repurchase program at an average price of $13.19 for a total of approximately $5.0 million. The Company’s Credit Agreement allows for an additional $5 million of share repurchases, for a total of $10 million. Pursuant to the repurchase program, purchases may be made from time to time at the Company's discretion and the Company is not obligated to acquire any particular amount of common stock.
Sale-Leaseback Activity
During the second quarter of fiscal 2023, the Company completed a $28.9 million Sale-Leaseback transaction with Essential Properties Realty Trust, Inc. (NYSE: EPRT) to sell and simultaneously lease-back nine owned properties.
The Company is currently marketing approximately 20 additional owned properties for potential Sale-Leaseback transactions and anticipates closing one or more transactions in 2023. The Company continues to expect to use net proceeds to repay debt, fund capital investments, and support share repurchase activity pursuant to the Company's Credit Agreement.
Acquisition of Five Red Robin Franchised Restaurants
During the second quarter of fiscal 2023, the Company acquired five Red Robin restaurants in the northeastern United States from a long-term franchisee who retired for $3.5 million. The acquisition is anticipated to add approximately $1 million of net, annual EBITDA contribution and is included in the Company's Initial, Prior, and Current Guidance.
Outlook for Fiscal 2023 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 Red Robin assumes no obligation to update or supplement this information.
The Company's Initial, Prior, and Current guidance metrics are as follows:
|
| Initial Guidance | Prior Guidance | Current Guidance |
| Total Revenue | Approximately $1.3 billion | At least $1.3 billion | At least $1.3 billion |
| Comparable Restaurant Revenue | N/A | Increase 2.0% to 4.0% | Increase 1.0% to 3.0% |
| Restaurant Level Operating Profit(1), inclusive of investments in the Guest experience | At least 13.0% | At least 13.5% | At least 13.5% |
| Selling, general and administrative costs, inclusive of incentive compensation costs | $120 to $125 million | $127 to $132 million | $127 to $132 million |
| Capital expenditures | $35 to $40 million | $45 to $50 million | $45 to $50 million |
| Adjusted EBITDA(1) | $62.5 to $72.5 million | $70 to $80 million | $72.5 to $82.5 million |
Fiscal 2023 includes 53 weeks versus 52 weeks in fiscal 2022.
| (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 from operations and Net income, 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 and income tax valuation adjustments. The reconciliations of Restaurant Level Operating Profit and Adjusted EBITDA to Income 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. |
Comparable Restaurant Revenue
The following table presents the percentage change in comparable restaurant revenue in the first and second quarter, and year to date period of fiscal 2023:
|
| Comparable Restaurant Increase (Decrease) Versus Prior Year | |||||
|
| Q1 2023 | Q2 2023 | Year to Date, | |||
| Guest Traffic | 0.6 | % | (6.0 | )% | (2.2 | )% |
|
|
|
|
| |||
| Average Guest Check |
|
|
| |||
| Menu Price Increase | 7.2 | % | 8.8 | % | 8.0 | % |
| Menu Mix | 0.8 | % | (2.1 | )% | (0.7 | )% |
| Discounts | — | % | 0.8 | % | 0.4 | % |
| Total Guest Check | 8.0 | % | 7.5 | % | 7.7 | % |
|
|
|
|
| |||
| Total Change in Comparable Restaurant Revenue | 8.6 | % | 1.5 | % | 5.5 | % |
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
|
|
| Twelve Weeks Ended |
| Twenty-Eight Weeks Ended | ||||||||||||
|
|
| July 9, 2023 |
| July 10, 2022 |
| July 9, 2023 |
| July 10, 2022 | ||||||||
| Revenues: |
|
|
|
|
|
|
|
| ||||||||
| Restaurant revenue |
| $ | 293,281 |
|
| $ | 288,621 |
|
| $ | 700,174 |
|
| $ | 669,218 |
|
| Franchise and other revenues |
|
| 5,367 |
|
|
| 5,435 |
|
|
| 16,286 |
|
|
| 19,912 |
|
| Total revenues |
|
| 298,648 |
|
|
| 294,056 |
|
|
| 716,460 |
|
|
| 689,130 |
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Costs and expenses: |
|
|
|
|
|
|
|
| ||||||||
| Restaurant operating costs (excluding depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
| ||||||||
| Cost of sales |
|
| 71,372 |
|
|
| 72,702 |
|
|
| 171,042 |
|
|
| 163,643 |
|
| Labor |
|
| 109,678 |
|
|
| 101,643 |
|
|
| 255,100 |
|
|
| 239,751 |
|
| Other operating |
|
| 51,842 |
|
|
| 52,003 |
|
|
| 123,892 |
|
|
| 119,867 |
|
| Occupancy |
|
| 23,482 |
|
|
| 22,980 |
|
|
| 53,283 |
|
|
| 53,579 |
|
| Depreciation and amortization |
|
| 15,756 |
|
|
| 17,637 |
|
|
| 37,581 |
|
|
| 41,556 |
|
| General and administrative |
|
| 20,667 |
|
|
| 18,730 |
|
|
| 47,466 |
|
|
| 43,167 |
|
| Selling |
|
| 6,196 |
|
|
| 13,365 |
|
|
| 13,921 |
|
|
| 23,308 |
|
| Pre-opening and acquisition costs |
|
| 4 |
|
|
| 235 |
|
|
| 586 |
|
|
| 297 |
|
| Other charges (gains), net |
|
| (10,607 | ) |
|
| 8,146 |
|
|
| (848 | ) |
|
| 13,453 |
|
| Total costs and expenses |
|
| 288,391 |
|
|
| 307,441 |
|
|
| 702,023 |
|
|
| 698,621 |
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Income (loss) from operations |
|
| 10,257 |
|
|
| (13,385 | ) |
|
| 14,437 |
|
|
| (9,491 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||
| Other expense: |
|
|
|
|
|
|
|
| ||||||||
| Interest expense, net and other |
|
| 6,179 |
|
|
| 4,147 |
|
|
| 13,597 |
|
|
| 11,560 |
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Income (loss) before income taxes |
|
| 4,078 |
|
|
| (17,532 | ) |
|
| 840 |
|
|
| (21,051 | ) |
| Income tax provision (benefit) |
|
| 156 |
|
|
| 434 |
|
|
| 176 |
|
|
| 496 |
|
| Net income (loss) |
| $ | 3,922 |
|
| $ | (17,966 | ) |
| $ | 664 |
|
| $ | (21,547 | ) |
| Earnings (loss) per share: |
|
|
|
|
|
|
|
| ||||||||
| Basic |
| $ | 0.24 |
|
| $ | (1.13 | ) |
| $ | 0.04 |
|
| $ | (1.37 | ) |
| Diluted |
| $ | 0.24 |
|
| $ | (1.13 | ) |
| $ | 0.04 |
|
| $ | (1.37 | ) |
| Weighted average shares outstanding: |
|
|
|
|
|
|
|
| ||||||||
| Basic |
|
| 16,037 |
|
|
| 15,830 |
|
|
| 16,014 |
|
|
| 15,783 |
|
| Diluted |
|
| 16,291 |
|
|
| 15,830 |
|
|
| 16,367 |
|
|
| 15,783 |
|
|
|
|
|
|
|
|
|
|
| ||||||||
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
| (Unaudited) | ||||||||
|
|
| July 9, 2023 |
| December 25, 2022 | ||||
| Assets: |
|
|
|
| ||||
| Current assets: |
|
|
|
| ||||
| Cash and cash equivalents |
| $ | 44,034 |
|
| $ | 48,826 |
|
| Accounts receivable, net |
|
| 12,723 |
|
|
| 21,427 |
|
| Inventories |
|
| 26,899 |
|
|
| 26,447 |
|
| Income tax receivable |
|
| 461 |
|
|
| 562 |
|
| Prepaid expenses and other current assets |
|
| 13,368 |
|
|
| 12,938 |
|
| Restricted cash |
|
| 12,213 |
|
|
| 9,380 |
|
| Total current assets |
|
| 109,698 |
|
|
| 119,580 |
|
| Property and equipment, net |
|
| 289,694 |
|
|
| 318,517 |
|
| Operating lease assets, net |
|
| 369,048 |
|
|
| 361,432 |
|
| Intangible assets, net |
|
| 17,944 |
|
|
| 17,727 |
|
| Other assets, net |
|
| 12,014 |
|
|
| 14,889 |
|
| Total assets |
| $ | 798,398 |
|
| $ | 832,145 |
|
|
|
|
|
|
| ||||
| Liabilities and stockholders' equity: |
|
|
|
| ||||
| Current liabilities: |
|
|
|
| ||||
| Accounts payable |
| $ | 25,890 |
|
| $ | 39,336 |
|
| Accrued payroll and payroll-related liabilities |
|
| 39,350 |
|
|
| 33,666 |
|
| Unearned revenue |
|
| 33,808 |
|
|
| 46,944 |
|
| Current portion of operating lease obligations |
|
| 49,213 |
|
|
| 47,394 |
|
| Current portion of long-term debt |
|
| 2,875 |
|
|
| 3,375 |
|
| Accrued liabilities and other |
|
| 53,208 |
|
|
| 49,498 |
|
| Total current liabilities |
|
| 204,344 |
|
|
| 220,213 |
|
| Long-term debt |
|
| 188,090 |
|
|
| 203,155 |
|
| Long-term portion of operating lease obligations |
|
| 391,370 |
|
|
| 393,157 |
|
| Other non-current liabilities |
|
| 11,568 |
|
|
| 13,831 |
|
| Total liabilities |
|
| 795,372 |
|
|
| 830,356 |
|
|
|
|
|
|
| ||||
| Stockholders' equity: |
|
|
|
| ||||
| Common stock; $0.001 par value: 45,000 shares authorized; 20,449 shares issued; 15,931 and 15,934 shares outstanding as of July 9, 2023 and December 25, 2022 |
|
| 20 |
|
|
| 20 |
|
| Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of July 9, 2023 and December 25, 2022 |
|
| — |
|
|
| — |
|
| Treasury stock 4,518 and 4,515 shares, at cost, as of July 9, 2023 and December 25, 2022 |
|
| (172,546 | ) |
|
| (182,810 | ) |
| Paid-in capital |
|
| 229,098 |
|
|
| 238,803 |
|
| Accumulated other comprehensive loss, net of tax |
|
| (22 | ) |
|
| (34 | ) |
| Accumulated deficit |
|
| (53,524 | ) |
|
| (54,190 | ) |
| Total stockholders' equity |
|
| 3,026 |
|
|
| 1,789 |
|
| Total liabilities and stockholders' equity |
| $ | 798,398 |
|
| $ | 832,145 |
|
|
|
| Twelve Weeks Ended | Twenty-Eight Weeks Ended | |||||||||||||
|
|
| July 9, 2023 | July 10, 2022 |
| July 9, 2023 | July 10, 2022 | ||||||||||
| Net income (loss) as reported |
| $ | 3,922 |
|
| $ | (17,966 | ) |
| $ | 664 |
|
| $ | (21,547 | ) |
| Gain on sale leaseback, net of expenses |
|
| (14,586 | ) |
|
| — |
|
|
| (14,586 | ) |
|
| — |
|
| Litigation contingencies |
|
| 1,240 |
|
|
| (1,806 | ) |
|
| 5,540 |
|
|
| (86 | ) |
| Restaurant closure costs, net |
|
| (112 | ) |
|
| 930 |
|
|
| 1,638 |
|
|
| 1,879 |
|
| Severance and executive transition |
|
| 962 |
|
|
| 129 |
|
|
| 2,854 |
|
|
| 129 |
|
| Asset impairment |
|
| 1,693 |
|
|
| 8,739 |
|
|
| 2,387 |
|
|
| 10,861 |
|
| Other (1) |
|
| 83 |
|
|
| — |
|
|
| 1,144 |
|
|
| — |
|
| Closed corporate office costs, net of sublease income |
|
| 113 |
|
|
| — |
|
|
| 175 |
|
|
| — |
|
| Other financing costs(2) |
|
| — |
|
|
| 61 |
|
|
| — |
|
|
| 370 |
|
| COVID-19 related charges |
|
| — |
|
|
| 93 |
|
|
| — |
|
|
| 300 |
|
| Change in estimate, gift card breakage(3) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (4,842 | ) |
| Write-off of unamortized debt issuance costs(4) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,727 |
|
| Income tax expense |
|
| 2,758 |
|
|
| (2,118 | ) |
|
| 220 |
|
|
| (2,688 | ) |
| Adjusted net income (loss) |
| $ | (3,927 | ) |
| $ | (11,938 | ) |
| $ | 36 |
|
| $ | (13,897 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||
| Basic loss per share: |
|
|
|
|
|
|
|
| ||||||||
| Net income (loss) as reported |
| $ | 0.24 |
|
| $ | (1.13 | ) |
| $ | 0.04 |
|
| $ | (1.37 | ) |
| Gain on sale leaseback, net of expenses |
|
| (0.91 | ) |
|
| — |
|
|
| (0.91 | ) |
|
| — |
|
| Litigation contingencies |
|
| 0.08 |
|
|
| (0.11 | ) |
|
| 0.35 |
|
|
| (0.01 | ) |
| Change in estimate, gift card breakage |
|
| (0.01 | ) |
|
| 0.06 |
|
|
| 0.10 |
|
|
| 0.12 |
|
| Restaurant closure costs, net |
|
| 0.06 |
|
|
| 0.01 |
|
|
| 0.18 |
|
|
| 0.01 |
|
| Write-off of unamortized debt issuance cost |
|
| 0.11 |
|
|
| 0.55 |
|
|
| 0.15 |
|
|
| 0.69 |
|
| Severance and executive transition |
|
| 0.01 |
|
|
| — |
|
|
| 0.07 |
|
|
| — |
|
| Income tax expense |
|
| 0.01 |
|
|
| — |
|
|
| 0.01 |
|
|
| — |
|
| Asset impairment |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.02 |
|
| Other |
|
| — |
|
|
| 0.01 |
|
|
| — |
|
|
| 0.02 |
|
| Other financing costs |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (0.31 | ) |
| COVID-19 related charges |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.11 |
|
| Closed corporate office costs, net of sublease income |
|
| 0.17 |
|
|
| (0.14 | ) |
|
| 0.01 |
|
|
| (0.17 | ) |
| Adjusted loss per share - basic |
| $ | (0.24 | ) |
| $ | (0.75 | ) |
| $ | — |
|
| $ | (0.85 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||
| Diluted loss per share: |
|
|
|
|
|
|
|
| ||||||||
| Net income (loss) as reported |
| $ | 0.24 |
|
| $ | (1.13 | ) |
| $ | 0.04 |
|
| $ | (1.37 | ) |
| Gain on sale leaseback, net of expenses |
|
| (0.91 | ) |
|
| — |
|
|
| (0.89 | ) |
|
| — |
|
| Litigation contingencies |
|
| 0.08 |
|
|
| (0.11 | ) |
|
| 0.34 |
|
|
| (0.01 | ) |
| Restaurant closure costs, net |
|
| (0.01 | ) |
|
| 0.06 |
|
|
| 0.10 |
|
|
| 0.12 |
|
| Severance and executive transition |
|
| 0.06 |
|
|
| 0.01 |
|
|
| 0.17 |
|
|
| 0.01 |
|
| Asset impairment |
|
| 0.11 |
|
|
| 0.55 |
|
|
| 0.15 |
|
|
| 0.69 |
|
| Other |
|
| 0.01 |
|
|
| — |
|
|
| 0.07 |
|
|
| — |
|
| Closed corporate office costs, net of sublease income |
|
| 0.01 |
|
|
| — |
|
|
| 0.01 |
|
|
| — |
|
| Other financing costs |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.02 |
|
| COVID-19 related charges |
|
| — |
|
|
| 0.01 |
|
|
| — |
|
|
| 0.02 |
|
| Change in estimate, gift card breakage |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (0.31 | ) |
| Write-off of unamortized debt issuance costs |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.11 |
|
| Income tax expense |
|
| 0.17 |
|
|
| (0.14 | ) |
|
| 0.01 |
|
|
| (0.17 | ) |
| Adjusted income (loss) per share - diluted |
| $ | (0.24 | ) |
| $ | (0.75 | ) |
| $ | — |
|
| $ | (0.85 | ) |
|
|
|
|
|
|
|
|
|
| ||||||||
| Weighted average shares outstanding: |
|
|
|
|
|
|
|
| ||||||||
| Basic |
|
| 16,037 |
|
|
| 15,830 |
|
|
| 16,014 |
|
|
| 15,783 |
|
| Diluted(5) |
|
| 16,037 |
|
|
| 15,830 |
|
|
| 16,367 |
|
|
| 15,783 |
|
| (1) | Other primarily includes non-cash charges related to terminated capital projects and disposals, and certain insurance claim proceeds. |
| (2) | Other financing costs includes legal and other charges related to the refinancing of our prior credit agreement in the first quarter of fiscal year 2022. |
| (3) | During the twenty-eight weeks ended July 10, 2022, the Company re-evaluated the estimated redemption pattern related to gift cards. The impact comprises $5.4 million included in Franchise royalties, fees, and other revenue partially offset by $0.6 million in gift card commission costs included in Selling on the Condensed Consolidated Statements of Operations. |
| (4) | Write-off of unamortized debt issuance costs related to the remaining unamortized debt issuance costs related to our legacy credit agreement with the completion of the refinancing of our Credit Agreement in the first quarter of fiscal year 2022. |
| (5) | For the 12 weeks ending July 9, 2023 and 28 weeks ending July 9, 2023, the impact of dilutive shares is excluded from the calculations as the adjustments for the quarter resulted in adjusted net income (loss). For diluted shares reported on the Condensed Consolidated Statement of Operations, the impact of dilutive shares is included due to the reported net income for the quarter. |
|
|
| Twelve Weeks Ended | Twenty-Eight Weeks Ended | |||||||||||||||||||||||||
|
|
| July 9, 2023 |
| July 10, 2022 |
| July 9, 2023 |
| July 10, 2022 | ||||||||||||||||||||
| Income from operations |
| $ | 10,257 |
|
| (13.6 | )% |
| $ | (13,385 | ) |
| (6.2 | )% |
| $ | 14,437 |
|
| (4.5 | )% |
| $ | (9,491 | ) |
| (3.2 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Franchise royalties, fees and other revenue |
|
| 5,367 |
|
| 4.0 | % |
|
| 5,435 |
|
| 2.4 | % |
|
| 16,286 |
|
| 2.8 | % |
|
| 19,912 |
|
| 2.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Other charges, net |
|
| (10,607 | ) |
| 10.6 |
|
|
| 8,146 |
|
| 2.4 |
|
|
| (848 | ) |
| 3.1 |
|
|
| 13,453 |
|
| 1.4 |
|
| Pre-opening costs |
|
| 4 |
|
| — |
|
|
| 235 |
|
| 0.2 |
|
|
| 586 |
|
| — |
|
|
| 297 |
|
| 0.1 |
|
| Selling |
|
| 6,196 |
|
| 4.9 |
|
|
| 13,365 |
|
| 5.5 |
|
|
| 13,921 |
|
| 4.1 |
|
|
| 23,308 |
|
| 4.1 |
|
| General and administrative expenses |
|
| 20,667 |
|
| 7.0 |
|
|
| 18,730 |
|
| 6.3 |
|
|
| 47,466 |
|
| 6.7 |
|
|
| 43,167 |
|
| 6.5 |
|
| Depreciation and amortization |
|
| 15,756 |
|
| 6.0 |
|
|
| 17,637 |
|
| 6.9 |
|
|
| 37,581 |
|
| 6.0 |
|
|
| 41,556 |
|
| 7.2 |
|
| Restaurant-level operating profit | $ | 36,907 |
|
|
| $ | 39,293 |
| $ | 96,857 |
|
| $ | 92,378 |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Income (loss) from operations as a percentage of total revenues |
|
| 3.4 | % |
|
|
|
| (4.6 | )% |
|
|
|
| (4.5 | )% |
|
|
|
| (3.2 | )% |
|
| ||||
| Restaurant-level operating profit margin (as a percentage of restaurant revenue) |
|
| 12.6 | % |
|
|
|
| 13.6 | % |
|
|
|
| 13.8 | % |
|
|
|
| 13.8 | % |
|
| ||||
|
| Twelve Weeks Ended |
| Twenty-Eight Weeks Ended | |||||||||||||
|
| July 9, 2023 |
| July 10, 2022 |
| July 9, 2023 |
| July 10, 2022 |
| ||||||||
| Net income (loss) as reported | $ | 3,922 |
|
| $ | (17,966 | ) |
| $ | 664 |
|
| $ | (21,547 | ) |
|
| Interest expense, net |
| 6,305 |
|
|
| 3,630 |
|
|
| 13,881 |
|
|
| 10,718 |
|
|
| Income tax provision (benefit) |
| 156 |
|
|
| 434 |
|
|
| 176 |
|
|
| 496 |
|
|
| Depreciation and amortization |
| 15,756 |
|
|
| 17,637 |
|
|
| 37,581 |
|
|
| 41,556 |
|
|
| EBITDA |
| 26,139 |
|
|
| 3,735 |
|
|
| 52,302 |
|
|
| 31,223 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Change in accounting estimate, gift card breakage |
| — |
|
|
| — |
|
|
| — |
|
|
| (4,842 | ) |
|
| Other charges, net: |
|
|
|
|
|
|
|
| ||||||||
| Gain on sale leaseback, net of expenses |
| (14,586 | ) |
|
| — |
|
|
| (14,586 | ) |
|
| — |
|
|
| Litigation contingencies |
| 1,240 |
|
|
| (1,806 | ) |
|
| 5,540 |
|
|
| (86 | ) |
|
| Restaurant closure costs, net |
| (112 | ) |
|
| 930 |
|
|
| 1,638 |
|
|
| 1,879 |
|
|
| Severance and executive transition |
| 962 |
|
|
| 129 |
|
|
| 2,854 |
|
|
| 129 |
|
|
| Asset impairment |
| 1,693 |
|
|
| 8,739 |
|
|
| 2,387 |
|
|
| 10,861 |
|
|
| Other |
| 83 |
|
|
| — |
|
|
| 1,144 |
|
|
| — |
|
|
| Closed corporate office costs, net of sublease income |
| 113 |
|
|
| — |
|
|
| 175 |
|
|
| — |
|
|
| Other financing costs |
| — |
|
|
| 61 |
|
|
| — |
|
|
| 370 |
|
|
| COVID-19 related charges |
| — |
|
|
| 93 |
|
|
| — |
|
|
| 300 |
|
|
| Adjusted EBITDA | $ | 15,532 |
|
| $ | 11,881 |
|
| $ | 51,454 |
|
| $ | 39,834 |
|
|