After U.S. markets closed for trading yesterday afternoon, full-service and family-friendly restaurant chain Red Robin Gourmet Burgers Inc. (RRGB:NASDAQ), which presents patrons with a wide selection of high-quality gourmet burgers, announced financial results for its first fiscal quarter of 2022 ended April 17, 2022.
The company reported that during Q1/22 its restaurant revenue increased by 19.4% to $380.6 million, compared to $318.7 million Q1/21. The firm stated that comparable restaurant revenue during the quarter came in 19.7% higher versus the prior year's corresponding quarter. Red Robin advised that the increase was attributed to an increase in the total of the average Guest's check of 12.8% together with a 6.9% increase in Guest count.
The firm explained that about 6% of the increase in the average check amount was due to the increasing number of orders for Donatos® pizza which is now available at around 200 of its restaurants.
Red Robin stated for Q1/22, it recorded a net loss of $3.1 million, or $0.20 per diluted share, versus a net loss of $8.7 million, or $0.56 per diluted share in Q1/21.
The company explained that the decrease in net loss in Q1/22 represents a $5.6 million improvement over Q1/21 and was due to a $61.9 million increase in restaurant revenue that was offset in part by higher commodity, staffing, and marketing costs.
The firm added that during Q1/22 it had adjusted EBITDA of $28.0 million, compared to $27.4 million in Q1/21.
The company's President and CEO Paul J. B. Murphy III commented, "We have now added Donatos® pizza to almost half our company restaurants, and in the first quarter we generated total pizza sales of more than $7 million, and checks with pizza were higher on average by more than $10. Our integrated and seamless digital ecosystem, which includes a newly designed website and the recent launch of our first app, will drive trial and frequency as we increase marketing to a broader audience during the second quarter and beyond."
Murphy stated that the firm's Red Robin Royalty® loyalty program has grown to 10.6 million members which is expected to contribute significantly to delivering all-time high levels of guest engagement.
The company discussed its business outlook and advised that it is reaffirming its FY/22 adjusted EBITDA guidance which it expects will be between $80 and $90 million. The firm indicated that it estimates that thru FY/22 it will experience mid-to-high single-digit restaurant labor cost inflation and it expects total SG&A costs of $145-155 million.
Red Robin is a casual dining restaurant chain based in Greenwood Village, Colo. The company's menu offers customers a variety of burger combination choices along with a host of appetizers, salads, entrees, side favorites such as its Bottomless Steak Fries®, desserts, and its signature shakes and other beverages. In addition, the firm also serves Donatos® pizza at select locations. The company operates 546 restaurants in 44 U.S. states and in British Columbia, Canada. Of these 546 Red Robin locations, 443 (81.0%) are company-owned and the remaining 103 (19.0%) are operated by franchisees.
Red Robin started the day with a market cap of around $135.9 million with approximately 15.8 million shares outstanding and a short interest of about 14.7%. RRGB shares opened 19% higher today at $10.25 (+$1.64, +19.05%) over yesterday's $8.61 closing price. The stock traded today between $10.05 and $11.03 per share and closed at $10.77 (+$2.16, +25.09%).
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