Jul 11, 2021

Red Robin Q2 2021 Earnings Report

Reported financial results indicating a mixed performance with revenue increase but overall performance below expectations due to jurisdictional restrictions and labor availability.

Key Takeaways

Red Robin reported a revenue increase of 71.9% compared to the same period in 2020, but the overall performance was below expectations due to ongoing jurisdictional restrictions and challenging labor availability. The company is optimistic about recovery and focusing on staffing initiatives and growth drivers like Donatos pizza.

Restaurant revenue reached $272.2 million with a Restaurant Level Operating Profit of 15.7%.

Comparable restaurant revenue increased 66.3% compared to 2020 but decreased 2.4% compared to 2019.

Off-premises sales accounted for 32.8% of total food and beverage sales.

Restaurants with Donatos® pizza outperformed the rest of the system by 550 basis points compared to 2019.

Total Revenue
$277M
Previous year: $161M
+71.9%
EPS
-$0.22
Previous year: -$3.31
-93.4%
Gross Profit
$94.5M
Previous year: $38.8M
+143.3%
Cash and Equivalents
$25.6M
Previous year: $26.1M
-2.2%
Total Assets
$942M
Previous year: $1.03B
-8.6%

Red Robin

Red Robin

Forward Guidance

Due to the uncertainty caused by the on-going COVID-19 pandemic, limited guidance is being provided for fiscal year 2021.

Positive Outlook

  • Capital expenditures of $45 million to $55 million.
  • Continued investment in maintaining our restaurants and infrastructure with maintenance and systems capital.
  • Donatos® expansion to approximately 120 restaurants, including approximately 80 restaurants in the second half of the fiscal year.
  • Investment in digital guest and operational technology solutions.
  • Off-premises execution enhancements.

Challenges Ahead

  • Uncertainty caused by the on-going COVID-19 pandemic.
  • Limited guidance is being provided for fiscal year 2021.
  • Effective tax benefit between 1% to 5%.
  • Selling, general and administrative costs between $125 and $135 million.