Red Robin Gourmet Burgers Inc (RRGB) Reports Q3 2023 Earnings: Net Loss Decreases by $4.5 Million
Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) reports a net loss of $8.2 million for Q3 2023, a decrease of $4.5 million from the same period in 2022.
Total revenues for Q3 2023 stand at $277.6 million, marking a decrease of $9.2 million compared to Q3 2022.
The company repaid $8.4 million of debt and repurchased $5 million of stock in Q3 2023.
Year-to-date, total revenues increased by $18.1 million to $994.0 million, and net loss decreased by $26.7 million to $7.5 million.
Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) released its earnings report for the fiscal third quarter ended October 1, 2023, on November 1, 2023. The company reported a net loss of $8.2 million, a decrease of $4.5 million from a net loss of $12.7 million during the same period in 2022. Total revenues for the quarter were $277.6 million, a decrease of $9.2 million compared to the third quarter of fiscal 2022.
Financial Highlights
Despite the decrease in total revenues, the company's "North Star" Five-Point Plan continues to gain traction. The company repaid $8.4 million of debt and repurchased $5 million of stock in the third quarter. The company also completed a Sale-Leaseback transaction for nine restaurants, generating net proceeds of approximately $30.4 million and a gain, net of expenses of $14.9 million.
Year-to-date, total revenues increased by $18.1 million to $994.0 million. The net loss decreased by $26.7 million to $7.5 million from a net loss of $34.2 million during the same period of 2022. The company also repaid $24.9 million of debt and repurchased $10.0 million of stock.
Company's Commentary
Red Robin's President and Chief Executive Officer, G.J. Hart, commented on the company's performance,
We have made tremendous progress in 2023, first investing in people and hospitality and recently launching quality upgrades to ingredients and offerings across our menu. The enhancements we are making across all touch points continue to resonate with our guests resulting in increases in satisfaction, and we expect will ultimately drive increased traffic counts."
Outlook for Fiscal 2023
The company provided guidance for fiscal 2023, projecting total revenue of at least $1.3 billion, an increase in comparable restaurant revenue of 1.0% to 3.0%, and adjusted EBITDA of $72.5 to $77.5 million.
Conclusion
Despite the decrease in total revenues for Q3 2023, Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) has shown significant progress in reducing its net loss. The company's "North Star" Five-Point Plan continues to gain traction, and the company's investments in people, hospitality, and menu upgrades are expected to drive increased traffic counts and customer satisfaction.
Explore the complete 8-K earnings release (here) from Red Robin Gourmet Burgers Inc for further details.
This article first appeared on GuruFocus.
