ENGLEWOOD, Colo. – Gourmet red Robin (NASDAQ:) Burgers, Inc. (NASDAQ:RRGB) reported wider-than-expected losses for the second quarter, sending its shares tumbling 9% in after-hours trading on Thursday.
The casual dining chain posted an adjusted loss of $0.47 per share for the second quarter, missing analysts’ estimates for a loss of $0.42 per share. Revenue came in at $300.2 million, beating expectations of $294.37 million but only marginally higher than $298.6 million a year ago.
Comparable restaurant sales decreased 0.8%, excluding a deferred sales benefit related to changes to the company’s loyalty program. Including this benefit, comparable sales increased by 1.4% year-on-year.
Red Robin CEO GJ Hart acknowledged that results and lowered full-year expectations were “not what we expected,” citing a broader slowdown in the restaurant industry that masked progress on the company’s turnaround initiatives .
For fiscal 2024, Red Robin now expects total revenue of about $1.25 billion, slightly above the consensus estimate of $1.246 billion but implying minimal growth from 2023. The company also lowered its adjusted EBITDA forecast to a range of $40 -$45 million.
“With this progress, we expect to meet or exceed industry averages in attendance for the remainder of the year,” Hart said, highlighting improvements in guest satisfaction scores and recent positive comparable sales trends.
Red Robin also announced that it has amended its credit agreement to revise financial covenants and expand revolver capacity, providing additional flexibility as it executes its turnaround strategy.
The company ended the second quarter with $23.1 million in cash and $167.9 million in borrowings outstanding under its credit facility.
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