Red Robin reports US$285.2M Q4 2024 revenue, down US$23.8m year-over-year

USA – Leading casual dining chain Red Robin Gourmet Burgers has reported Q4 2024 revenue of US$285.2 million, marking a US$23.8 million decline from the US$309 million recorded during the same period last year.

Red Robin’s Q4 fiscal 2024 results were significantly affected by the quarter operating over 12 weeks instead of 13, as was the case in Q4 2023.

Total revenue for 2024 reached US$1.25 billion, reflecting a decrease of US$54.5 million compared to the previous year.

The net loss for Q4 widened to US$39.7 million from US$13.7 million in Q4 2023, pushing the full-year net loss to US$77.5 million, a notable increase from US$21.2 million in 2023.

Adjusted EBITDA and Revenue Trends

Despite these losses, Q4 adjusted EBITDA rose to US$12.7 million, up 19%, though full-year adjusted EBITDA fell sharply by 43.7% to US$38.8 million.

Comparable restaurant revenue in Q4 increased by 3.4% when excluding deferred loyalty revenue adjustments, or 1.8% including them; however, on an annual basis, it declined by 1.2%, highlighting ongoing challenges in a competitive market.

Operational Actions and Financial Position

As of 29 December 2024, the company had US$189.5 million in outstanding credit facility borrowings and maintained liquidity of US$50.7 million, which includes cash and available borrowing capacity.

During Q4 2024, Red Robin closed one restaurant and is now reviewing 70 underperforming locations for potential closure.

The company incurred US$32.4 million in asset impairments and closure charges and plans to sell three properties for US$5.8 million in Q1 fiscal 2025, with these assets classified as held for sale as of 29 December 2024.

Outlook for Fiscal 2025 and CEO Commentary

For fiscal 2025, Red Robin expects total revenue between US$1.225 billion and US$1.250 billion, with restaurant-level operating profit projected at 12% to 13%.

Adjusted EBITDA, excluding stock-based compensation, is forecast to reach between US$60 million and US$65 million, with capital expenditures anticipated to be in the range of US$25 million to US$30 million.

President and CEO GJ Hart noted that despite 2024’s financial shortfalls, significant improvements in guest experience and cost-saving initiatives have begun to bear fruit, evidenced by a 600-basis point improvement in traffic trends and a 19% increase in Q4 adjusted EBITDA.

Hart expressed confidence that these strategic adjustments position the company to unlock the full potential of its iconic brand.

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