ENGLEWOOD, Colo. - Red Robin Gourmet (NASDAQ:RRGB) Burgers, Inc. (NASDAQ:RRGB) reported wider-than-expected losses for the second quarter, sending shares tumbling 9% in after-hours trading on Thursday.
The casual dining chain posted an adjusted loss of $0.47 per share for Q2, missing analyst estimates for a loss of $0.42 per share. Revenue came in at $300.2 million, surpassing expectations of $294.37 million but up only marginally from $298.6 million a year ago.
Comparable restaurant revenue declined 0.8% excluding a deferred revenue benefit related to changes in the company's loyalty program. Including this benefit, comparable sales rose 1.4% YoY.
Red Robin CEO G.J. Hart acknowledged the results and reduced full-year guidance 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 approximately $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 continue to expect to meet or exceed the industry average on traffic through the remainder of the year," Hart said, highlighting improvements in guest satisfaction scores and recent positive comparable sales trends.
Red Robin also announced 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 Q2 with $23.1 million in cash and $167.9 million in outstanding borrowings under its credit facility.
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