Dec 26, 2021

Red Robin Q4 2021 Earnings Report

Red Robin's financial performance improved compared to 2020, driven by increased restaurant revenue and comparable restaurant revenue.

Key Takeaways

Red Robin reported a net loss of $21.3 million for the fourth quarter of 2021, an improvement of $18.0 million compared to 2020. Restaurant revenue increased by 41.5% to $276.7 million, and comparable restaurant revenue increased by 40.1%. The company's adjusted EBITDA also improved by $15.3 million to $8.9 million.

Restaurant revenue increased 41.5% compared to 2020, reaching $276.7 million.

Comparable restaurant revenue increased 40.1% compared to 2020.

Net loss improved by $18.0 million compared to 2020, totaling $21.3 million.

Adjusted EBITDA improved by $15.3 million compared to 2020, reaching $8.9 million.

Total Revenue
$283M
Previous year: $201M
+41.0%
EPS
-$1.03
Previous year: -$1.79
-42.5%
Gross Profit
$94.4M
Previous year: $57.6M
+63.9%
Cash and Equivalents
$22.8M
Previous year: $16.1M
+41.2%
Total Assets
$929M
Previous year: $975M
-4.7%

Red Robin

Red Robin

Forward Guidance

Red Robin provided guidance for full year 2022, assuming no significant disruptions from COVID-19 or geopolitical events. They expect mid-to-high single digit commodity and restaurant labor cost inflation, selling, general and administrative costs between $145 and $155 million, adjusted EBITDA between $80 and $90 million, and capital expenditures of $40 to $50 million.

Positive Outlook

  • Continued investment in maintaining restaurants and systems.
  • Modest new restaurant growth.
  • Donatos® expansion to approximately 50 restaurants.
  • Improvements to operational technology solutions.
  • Off-premises execution enhancements.

Challenges Ahead

  • Mid-to-high single digit commodity and restaurant labor cost inflation.
  • Margin pressures expected to persist during 2022.
  • Potential disruptions from COVID-19.
  • Impact of geopolitical events.
  • Other factors affecting the macroeconomic environment.