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Dec 27, 2020
Red Robin Q4 2020 Earnings Report
Reported financial results, showing a decrease in total revenues and a net loss compared to the same quarter of the previous year, impacted by the COVID-19 pandemic.
Key Takeaways
Red Robin Gourmet Burgers, Inc. reported a decrease in total revenues and a net loss for the fourth quarter of 2020, primarily due to the impacts of the COVID-19 pandemic, including dining room restrictions. Off-premise sales increased significantly, but were not enough to offset the overall decline in revenue. The company received cash tax refunds and expects additional refunds in the coming year.
Total revenues decreased by 33.6% to $201.1 million due to COVID-19 impacts.
Comparable restaurant revenue decreased by 29.0%.
Off-premise sales increased by 131.8%, representing 43.9% of total food and beverage sales.
Net loss was $39.3 million, compared to a net loss of $7.7 million in the same quarter of the previous year.
Forward Guidance
Red Robin expects significant comparable restaurant revenue growth in 2021, driven by the recovery of Western markets, pent-up demand for casual dining, higher average guest check with increasing on-premise dining, and industry restaurant closures. The company also anticipates incremental growth from enterprise pricing, outdoor seating capacity expansions, restoration of full operating hours, and Donatos® expansion.
Positive Outlook
- Recovery of Western markets representing a meaningful portion of portfolio
- Pent up demand for casual dining
- Higher average Guest check with increasing on-premise dining
- Industry restaurant closures will drive significant comparable restaurant revenue growth in 2021
- Enterprise pricing, outdoor seating capacity expansions, restoration of full operating hours, and Donatos® expansion will generate incremental growth of mid-to-high single digit comparable restaurant revenue in 2021
Challenges Ahead
- Uncertainty caused by the on-going COVID-19 pandemic
- Supply chain disruption
Historical Earnings Impact
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Avg. Return Before/After Earnings
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