American casual dining chain Red Robin Gourmet Burgers has reported total revenue of $285.2m in the fourth quarter (Q4) of 2024, a decrease of $23.8m from $309m in the same period of the previous year.
The loss is mainly due to Q4 fiscal 2024 having 12 operating weeks compared to 13 in Q4 fiscal 2023. In 2024, total revenue was $1.25bn, down $54.5m.
Net loss for Q4 was $39.7m, compared to $13.7m in Q4 2023. For the full year, net loss increased to $77.5m from $21.2m in 2023.
Adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] for Q4 was $12.7m, up 19%, while full-year adjusted EBITDA was $38.8m, down 43.7%.
Comparable restaurant revenue rose 3.4% in Q4, excluding deferred loyalty revenue changes, or 1.8% including the impact. For the full year, it declined by 1.2%.
The company had $189.5m in outstanding credit facility borrowings and $50.7m in liquidity, including cash and available borrowing capacity, as of 29 December 2024.
The company closed one restaurant in Q4 fiscal 2024 and is reviewing 70 underperforming locations for potential closure. It incurred $32.4m in asset impairments and closure charges.
It plans to sell three properties for $5.8m in Q1 fiscal 2025, using the proceeds for debt repayment and general corporate purposes.
These properties are classified as assets held for sale as of 29 December 2024.
For fiscal 2025, the company expects total revenue between $1.225bn and $1.250bn, with a restaurant-level operating profit of between 12% and 13%.
Adjusted EBITDA (excluding stock-based compensation) is projected at between $60m and $65m, with capital expenditure of $25m to $30m.
Red Robin president and CEO GJ Hart said: “The last two years have been transformational years for Red Robin, and I’m proud to say we began to see the benefit of our work as we progressed through 2024, culminating in a 600-basis point improvement in traffic trends from the first quarter of the year to the fourth.
“We also gained traction in our cost-saving initiatives to translate our top-line momentum during the fourth quarter into a 19% increase in adjusted EBITDA.”
“While financial results for 2024 fell well below our original expectations, we’ve made substantial improvements to the guest experience and believe we still have a significant opportunity ahead of us to reach the full potential of our iconic brand.”
