Red Robin Gourmet Burgers (RRGB) 10-Q 11 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 12, 2020	Aug. 10, 2020
Document and Entity Information
Entity Registrant Name	RED ROBIN GOURMET BURGERS, INC.
Entity Central Index Key	0001171759
Current Fiscal Year End Date	--12-27
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 12, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		15,540,955
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Document Quarterly Report	true
Document Transition Report	false
City Area Code	(303)
Local Phone Number	846-6000
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-1573084
Entity Address, Address Line One	6312 S. Fiddlers Green Circle
Entity Address, Address Line Two	Suite 200N
Entity Address, City or Town	Greenwood Village
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80111
Trading Symbol	RRGB
Security Exchange Name	NASDAQ
Common Stock, $0.001 par value	Common Stock, $0.001 par value
Entity File Number	001-34851
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jul. 12, 2020	Dec. 29, 2019
Current assets:
Cash and cash equivalents	$ 26,138,000	$ 30,045,000
Accounts receivable, net	8,989,000	22,372,000
Inventories	24,983,000	26,424,000
Prepaid expenses and other current assets	46,817,000	26,646,000
Total current assets	106,927,000	105,487,000
Property and equipment, net	461,350,000	518,013,000
Right of use assets, net	415,900,000	426,248,000
Goodwill	0	96,397,000
Intangible assets, net	26,537,000	29,975,000
Other assets, net	19,931,000	61,460,000
Total assets	1,030,645,000	1,237,580,000
Current liabilities:
Accounts payable	19,906,000	33,040,000
Accrued payroll and payroll-related liabilities	25,135,000	35,221,000
Unearned revenue	43,938,000	54,223,000
Current portion of lease obligations	62,068,000	42,699,000
Short-term Debt	9,692,000	0
Accrued liabilities and other	44,250,000	29,403,000
Total current liabilities	204,989,000	194,586,000
Long-term debt	197,798,000	206,875,000
Long-term portion of lease obligations	455,288,000	465,435,000
Other non-current liabilities	14,479,000	10,164,000
Total liabilities	872,554,000	877,060,000
Stockholders' equity
Common stock; $0.001 par value: 45,000 shares authorized; 20,449 and 17,851 shares issued; 15,547 and 12,923 shares outstanding as of July 12, 2020 and December 29, 2019	20,000	18,000
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of July 12, 2020 and December 29, 2019	0	0
Treasury stock 4,902 and 4,928 shares, at cost, as of July 12, 2020 and December 29, 2019	(199,945,000)	(202,313,000)
Paid-in capital	240,812,000	213,922,000
Accumulated other comprehensive loss, net of tax	(5,503,000)	(4,373,000)
Retained Earnings	122,707,000	353,266,000
Total stockholders' equity	158,091,000	360,520,000
Total liabilities and stockholders' equity	$ 1,030,645,000	$ 1,237,580,000
Common Stock, Shares Authorized	45,000,000	45,000,000
Common Stock, Shares, Issued	20,449,000	17,851,000
Common Stock, Shares, Outstanding	15,547,000	12,923,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 12, 2020	Dec. 29, 2019
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	45,000,000	45,000,000
Common Stock, Shares, Issued	20,449,000	17,851,000
Common Stock, Shares, Outstanding	15,547,000	12,923,000
Preferred Stock, Shares Authorized	3,000,000	3,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Treasury Stock, Shares	4,902,000	4,928,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019	Jul. 12, 2020	Jul. 14, 2019
Revenues:
Total revenues	$ 161,122	$ 307,981	$ 467,187	$ 717,847
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales	38,780	72,387	109,206	166,102
Labor	62,742	106,538	181,308	249,432
Other operating	34,663	43,000	86,954	98,565
Occupancy	20,758	25,458	54,415	60,478
Depreciation and amortization	20,560	21,369	48,880	49,807
Selling, general, and administrative expenses	19,697	35,234	61,199	83,350
Pre-opening costs	3	0	156	319
Other charges	14,501	16,847	133,880	19,245
Total costs and expenses	211,704	320,833	675,998	727,298
Loss from operations	(50,582)	(12,852)	(208,811)	(9,451)
Other expense:
Interest expense, net and other	1,979	2,153	5,349	5,391
Loss before income taxes	(52,561)	(15,005)	(214,160)	(14,842)
Income tax provision (benefit)	3,700	(15,986)	16,399	(16,462)
Net (loss) income	$ (56,261)	$ 981	$ (230,559)	$ 1,620
(Loss) earnings per share:
Basic (in dollars per share)	$ (4.09)	$ 0.08	$ (17.38)	$ 0.12
Diluted (in dollars per share)	$ (4.09)	$ 0.08	$ (17.38)	$ 0.12
Weighted average shares outstanding:
Basic (in shares)	13,741	12,970	13,262	12,969
Diluted (in shares)	13,741	13,043	13,262	13,047
Other comprehensive income (loss):
Foreign currency translation adjustment	$ 17	$ 406	$ (1,130)	$ 77
Other comprehensive income (loss), net of tax	17	406	(1,130)	77
Total comprehensive (loss) income	(56,244)	1,387	(231,689)	1,697
Restaurant revenue
Revenues:
Total revenues	160,144	302,418	461,578	702,902
Franchise and other revenues
Revenues:
Total revenues	$ 978	$ 5,563	$ 5,609	$ 14,945

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Paid-in Capital	Accumulated Other Comprehensive Loss, net of tax	Retained Earnings
Beginning balance (in shares) at Dec. 30, 2018		17,851	4,880
Beginning balance at Dec. 30, 2018	$ 382,805	$ 18	$ (201,505)	$ 212,752	$ (4,801)	$ 376,341
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan (in shares)			(32)
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan	140		$ 1,344	(1,204)
Acquisition of treasury stock (in shares)			31
Treasury Stock, Value, Acquired, Cost Method	(974)		$ (974)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	477			477
Net income	639					639
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(329)				(329)
Ending balance (in shares) at Apr. 21, 2019		17,851	4,879
Ending balance at Apr. 21, 2019	367,586	$ 18	$ (201,135)	212,025	(5,130)	361,808
Beginning balance (in shares) at Dec. 30, 2018		17,851	4,880
Beginning balance at Dec. 30, 2018	382,805	$ 18	$ (201,505)	212,752	(4,801)	376,341
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,620
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	77
Ending balance (in shares) at Jul. 14, 2019		17,851	4,866
Ending balance at Jul. 14, 2019	369,714	$ 18	$ (200,428)	212,059	(4,724)	362,789
Beginning balance (in shares) at Apr. 21, 2019		17,851	4,879
Beginning balance at Apr. 21, 2019	367,586	$ 18	$ (201,135)	212,025	(5,130)	361,808
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan (in shares)			(30)
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan	301		$ 1,208	(907)
Acquisition of treasury stock (in shares)			17
Treasury Stock, Value, Acquired, Cost Method	(501)		$ (501)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	981			941
Net income	981					981
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	406				406
Ending balance (in shares) at Jul. 14, 2019		17,851	4,866
Ending balance at Jul. 14, 2019	$ 369,714	$ 18	$ (200,428)	212,059	(4,724)	362,789
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Par or Stated Value Per Share	$ 0.001
Beginning balance (in shares) at Dec. 29, 2019		17,851	4,928
Beginning balance at Dec. 29, 2019	$ 360,520	$ 18	$ (202,313)	213,922	(4,373)	353,266
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan (in shares)			(39)
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan	217		$ 1,605	(1,388)
Acquisition of treasury stock (in shares)			72
Treasury Stock, Value, Acquired, Cost Method	(1,635)		$ (1,635)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	712			712
Net income	(174,298)					(174,298)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(1,147)				(1,147)
Ending balance (in shares) at Apr. 19, 2020		17,851	4,961
Ending balance at Apr. 19, 2020	184,369	$ 18	$ (202,343)	213,246	(5,520)	178,968
Beginning balance (in shares) at Dec. 29, 2019		17,851	4,928
Beginning balance at Dec. 29, 2019	360,520	$ 18	$ (202,313)	213,922	(4,373)	353,266
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(230,559)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(1,130)
Ending balance (in shares) at Jul. 12, 2020		20,449	4,902
Ending balance at Jul. 12, 2020	158,091	$ 20	$ (199,945)	240,812	(5,503)	122,707
Beginning balance (in shares) at Apr. 19, 2020		17,851	4,961
Beginning balance at Apr. 19, 2020	184,369	$ 18	$ (202,343)	213,246	(5,520)	178,968
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, $0.001 par value, net of stock issuance costs		2,598
Issuance of common stock, $0.001 par value, net of stock issuance costs	28,725	$ 2		28,723
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan (in shares)			(59)
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan	170		$ 2,398	(2,228)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,071			1,071
Net income	(56,261)					(56,261)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	17				17
Ending balance (in shares) at Jul. 12, 2020		20,449	4,902
Ending balance at Jul. 12, 2020	$ 158,091	$ 20	$ (199,945)	$ 240,812	$ (5,503)	$ 122,707
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Par or Stated Value Per Share	$ 0.001

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019
Cash flows from operating activities:
Net income	$ (230,559)	$ 1,620
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	48,880	49,807
Gift card breakage	(1,806)	(4,320)
Goodwill and restaurant asset impairment	116,193	14,064
Non-cash other charges	2,764	1,900
Deferred income tax provision (benefit)	42,686	(21,526)
Stock-based compensation expense	1,771	1,415
Other, net	393	560
Changes in operating assets and liabilities:
Accounts receivable	13,211	12,132
Prepaid expenses and other current assets	(18,807)	3,459
Lease assets, net of liabilities	17,666	1,502
Trade accounts payable and accrued liabilities	(9,374)	(7,388)
Unearned revenue	(8,479)	(11,343)
Other operating assets and liabilities, net	6,854	(136)
Net cash (used in) provided by operating activities	(18,607)	41,746
Cash flows from investing activities:
Purchases of property, equipment, and intangible assets	(11,456)	(21,168)
Proceeds from sales of real estate and property, plant, and equipment and other investing activities	43	178
Net cash used in investing activities	(11,413)	(20,990)
Cash flows from financing activities:
Borrowings of long-term debt	135,000	162,000
Payments of long-term debt and finance leases	(134,385)	(174,464)
Purchase of treasury stock	(1,635)	(1,475)
Debt issuance costs	(2,952)	0
Proceeds from Issuance of Common Stock	29,675	0
Proceeds from exercise of stock options and employee stock purchase plan	666	693
Net cash provided by (used in) financing activities	26,369	(13,246)
Effect of exchange rate changes on cash	(256)	115
Net change in cash and cash equivalents	(3,907)	7,625
Cash and cash equivalents, beginning of period	30,045	18,569
Cash and cash equivalents, end of period	26,138	26,194
Supplemental disclosure of cash flow information
Income taxes (refund received) paid	(3)
Income taxes (refund received) paid		2,742
Interest paid, net of amounts capitalized	4,915	5,482
Change in construction related payables	$ (1,449)	$ 1,883

Basis of Presentation and Recen

Basis of Presentation and Recent Accounting Pronouncements	6 Months Ended
	Jul. 12, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Recent Accounting Pronouncements	Basis of Presentation and Recent Accounting Pronouncements Red Robin Gourmet Burgers, Inc., a Delaware corporation, together with its subsidiaries ("Red Robin" or the "Company"), primarily operates, franchises, and develops full-service restaurants in North America. As of July 12, 2020, the Company owned and operated 450 restaurants located in 38 states. The Company also had 102 franchised full-service restaurants in 16 states and one Canadian province as of July 12, 2020. The Company operates its business as one operating and one reportable segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in the Company's annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 29, 2019 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2019, filed with the SEC on February 25, 2020. Our current and prior year periods, period end dates, and number of weeks included in the period are summarized in the table below: Periods Period End Date Number of Weeks in Period Current and Prior Fiscal Quarters: Second Quarter 2020 July 12, 2020 12 Second Quarter 2019 July 14, 2019 12 First Quarter 2020 April 19, 2020 16 First Quarter 2019 April 21, 2019 16 Current and Prior Fiscal Years: Fiscal Year 2020 December 27, 2020 52 Fiscal Year 2019 December 29, 2019 52 Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. For the twenty-eight weeks ended July 14, 2019, the Company reclassified the following within net cash (used in) provided by operating activities on the condensed consolidated statements of cash flows: $14.1 million from Non-cash other charges to Goodwill and restaurant asset impairment and $1.5 million from Other operating assets and liabilities, net to Lease assets, net of liabilities. Going Concern - Substantial Doubt Resolved As required by ASC Topic 205-40, Presentation of Financial Statements - Going Concern , management has assessed the Company's ability to continue as a going concern for one year from the financial statement issuance date for the fiscal quarter ended July 12, 2020. On May 29, 2020, the Company obtained the First Amendment to the Credit Agreement and Waiver (the "Amendment") to the Company's Amended and Restated Credit Agreement (the "Credit Facility"). The Amendment provided relief from our existing events of default under the Credit Facility and provided covenant relief subject to the successful completion of a $25 million capital raise on or before November 13, 2020, as further disclosed in Note 8, Borrowings . As of the issuance date of our first quarter 2020 financial statements, the Company disclosed, as required under applicable accounting standards, that substantial doubt existed surrounding the Company's ability to meet its obligations within one year of the issuance date of the first quarter Form 10-Q because the capital raise was outside of management's control at the time. On June 17, 2020, the Company issued 2.6 million shares of common stock raising proceeds of $28.7 million, net of stock issuance costs, through its at-the-market equity offering. The equity raise satisfied the terms of the Amendment, and management expects to remain in compliance with the Credit Facility covenants for at least twelve months from the issuance of the July 12, 2020 Form 10-Q. Management has concluded there is not a substantial doubt regarding the Company’s ability to continue as a going concern. Recent Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Update 2019-12, Income Taxes ("Topic 740") as part of its Simplification Initiative. This guidance provides amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for annual and interim reporting periods beginning after December 15, 2020, and early adoption is permitted. We are currently evaluating the full impact this guidance will have on our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's condensed consolidated financial statements.

COVID-19 Pandemic

COVID-19 Pandemic	4 Months Ended
	Apr. 19, 2020
Unusual or Infrequent Items, or Both [Abstract]
COVID-19 Pandemic	COVID-19 Pandemic Overview Due to the novel coronavirus ("COVID-19") pandemic, we have navigated and continue to navigate an unprecedented time for our business and industry as we collectively work to maintain the stable operation of our business. During the second quarter of 2020, the Company began re-opening dining rooms at Company-owned restaurants in accordance with local limits with re-opened restaurants operating at no higher than 50% occupant capacity. Re-opening dining rooms was executed with the health, safety, and well-being of Red Robin's Team Members, Guests, and communities in mind, and strict adherence to US Centers for Disease Control ("CDC"), state, and local guidelines as our top priority. The COVID-19 pandemic has had a material adverse effect on our business, and we expect the impact from COVID-19 will continue to negatively affect our business through the remainder of fiscal year 2020. Franchise Revenue In response to COVID-19's effect on our franchise operations, we temporarily abated franchise royalty payments and advertising contributions effective March 20, 2020. During periods of abated payments, franchise revenue was not recognized or collected from our franchisees. Abated royalty payments and advertising contributions will not be collected by the Company. The Company began charging and collecting partial franchise royalty payments and advertising contributions during the latter half of the second fiscal quarter of 2020. Franchised restaurants operate under contractual arrangements with the Company, and the payments specified in the franchise contracts are accounted for under ASC Topic 606, Revenue from Contracts with Customers . Rent In response to the impact of COVID-19 on our operations, beginning April 1, 2020 the Company stopped making full lease payments under its existing lease agreements. During the suspension of payments, the Company continued to recognize expenses and liabilities for lease obligations and corresponding right-of-use assets on the balance sheet in accordance with ASC Topic 842 . We are engaging in ongoing constructive discussions with landlords regarding the potential restructuring of lease payments and rent concessions. As of July 12, 2020, the Company has contractually negotiated rent concessions on certain leases. The types of rent concessions the Company has negotiated include early termination, early renewal, rent deferral, and rent abatement. For contractual rent concessions that do not substantially change the total cash flows of the lease, the Company has elected to account for these concessions assuming the existing lease agreements provide enforceable rights and obligations consistent with the relief issued by the Financial Accounting Standards Board titled ASC Topic 842 and ASC Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Relief") . For leases where the rent concession did not substantially change the total cash flows, the concession was accounted for as a remeasurement to the lease liability based on the original discount rate with a corresponding adjustment to the right-of-use asset. Additionally, the classification of the leases was not reassessed. The Company recorded an immaterial remeasurement to the lease liability and right-of-use asset resulting from contractual rent concessions under the FASB relief during the second fiscal quarter of 2020. For contractual rent concessions that substantially changed the total cash flows of the lease and did not qualify for the FASB relief, we applied the modification framework in accordance with ASC Topic 842 , Leases . The Company reassessed lease classification for rent concessions that did not qualify for the FASB relief, and it was concluded one lease changed from finance to operating and two leases changed from operating to finance. Based on updated discount rates, a $21.7 million remeasurement was recorded to increase the lease liability, a $21.7 million adjustment was recorded to increase the right-of-use asset, and an immaterial loss was recorded in Occupancy on the condensed consolidated statements of operations and comprehensive (loss) income. Contractual rent concessions granted to the Company did not grant the right to use additional assets not included in the original lease contracts, so no separate contracts were accounted for as part of the rent concession modifications. Goodwill We performed a goodwill impairment analysis during the first quarter of 2020 resulting in full impairment of our goodwill balance totaling $95.4 million. The goodwill impairment is included in Other charges on the condensed consolidated statements of operations and comprehensive (loss) income for the twenty-eight weeks ended July 12, 2020 and was measured as the amount by which the carrying amount of the reporting unit, including goodwill, exceeded its fair value. Restaurant Assets During the twelve weeks ended July 12, 2020, the Company recognized $5.3 million of impairment related to restaurant assets included in Other charges on the condensed consolidated statements of operations and comprehensive (loss) income resulting from the continuing and projected future results of 6 Company-owned restaurants. Restaurant asset impairment of $2.3 million was related to 4 permanently closed Company-owned restaurants and included in Restaurant closure and refranchising costs in Note 7, Other Charges . Additional restaurant asset impairment was recognized during the twelve weeks ended July 12, 2020 due to changes in management's forecast. Although current fiscal year to date results continue to align with management's forecast, the increase in reported COVID-19 cases across the United States and factors associated with the pandemic have changed management's expectation on the timing of the Company's recovery and projected results in future fiscal periods at certain restaurants. If reported COVID-19 cases continue to increase or other factors associated with the pandemic continue to develop, management's forecast could change in future periods requiring additional restaurant asset impairment. The Company recognized $15.5 million of impairment related to restaurant assets during the first quarter of 2020 resulting from the continuing and projected future results of 24 Company-owned restaurants. The restaurant asset impairment is included in Other charges on the condensed consolidated statements of operations and comprehensive (loss) income for the twenty-eight weeks ended July 12, 2020. Recoverability of restaurant assets, including restaurant sites, leasehold improvements, information technology systems, right-of-use assets, amortizable intangible assets, and other fixed assets, to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. Each restaurant's past and present operating performance was reviewed in combination with projected future results primarily through projected undiscounted cash flows that included management's current expectation of future financial impacts from COVID-19. If the restaurant assets were determined to be impaired through comparison of the assets carrying value to its undiscounted cash flows, the Company compared the carrying amount of each restaurant's assets to its fair value as estimated by management to calculate the impairment amount. The fair value of restaurant assets is generally determined using a discounted cash flow projection model, which is based on significant inputs not observed in the market and represents a level 3 fair value measurement. In certain cases, management uses other market information, when available, to estimate the fair value of a restaurant's assets. The restaurant asset impairment charges represent the excess of the carrying amount over the estimated fair value of the restaurant assets calculated using a discounted cash flow projection model. Income Tax The March 19, 2020 passage of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") created an opportunity for the Company to carry back 2019 and 2020 projected net operating losses ("NOL's"). As a result, $35 million of federal and state tax receivables are recorded in Prepaid expenses and other current assets on the condensed consolidated balance sheets as of July 12, 2020 and are expected to generate projected cash tax refunds in the range of $14 million to $17 million within the next 12 months. The remaining receivables will be carried forward as allowed under applicable taxing jurisdictions. As a result of these projected NOL carrybacks, approximately $58 million of the previously utilized FICA tip tax credits will be reinstated. As of July 12, 2020, the existing $79 million FICA tip credit carryforwards will be utilized based on projected future taxable income, however they are anticipated to be replaced by originating FICA tip credits that are not projected to be utilized in the carry forward period. Therefore, a $79 million valuation allowance has been established for the FICA tip credit carryforwards. $27 million of the valuation allowance was recognized during the twelve weeks ended July 12, 2020. To the extent future actual taxable income exceeds the current projections, the FICA tip credit carryforwards may become realizable. The Company's $90 million deferred tax assets are recorded net of the $79 million valuation allowance in Other assets, net on the condensed consolidated balance sheets as of July 12, 2020. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the future reversals of existing deferred tax liabilities and projected taxable income, including whether future originating deductible temporary differences are likely to be realized.

Revenue

Revenue	6 Months Ended
	Jul. 12, 2020
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of revenue In the following table, revenue is disaggregated by type of good or service (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Restaurant revenue $ 160,144 $ 302,418 $ 461,578 $ 702,902 Franchise revenue (1) 380 4,389 3,277 9,752 Gift card breakage 392 639 1,806 4,320 Other revenue 206 535 526 873 Total revenues $ 161,122 $ 307,981 $ 467,187 $ 717,847 ——————————————————— (1) The decrease in Franchise revenue is driven by the temporary abatement and non-collection of franchise payments. See Note 2, COVID-19 Pandemic , for further discussion. Contract liabilities Components of Unearned revenue in the accompanying condensed consolidated balance sheets are as follows (in thousands): July 12, 2020 December 29, 2019 Unearned gift card revenue $ 33,306 $ 43,544 Deferred loyalty revenue $ 10,632 $ 10,679 Revenue recognized in the condensed consolidated statements of operations and comprehensive (loss) income for the redemption of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands): Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 Gift card revenue $ 12,990 $ 18,380

Leases

Leases	6 Months Ended
	Jul. 12, 2020
Leases [Abstract]
Leases	Leases Leases are included in right-of-use assets, net, current portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of July 12, 2020 and December 29, 2019 as follows (in thousands): July 12, 2020 Finance Operating Total Right of use assets, net $ 11,340 $ 404,560 $ 415,900 Current portion of lease obligations 1,070 60,998 62,068 Long-term portion of lease obligations 12,532 442,756 455,288 Total $ 13,602 $ 503,754 $ 517,356 December 29, 2019 Finance Operating Total Right of use assets, net $ 7,552 $ 418,696 $ 426,248 Current portion of lease obligations 725 41,974 42,699 Long-term portion of lease obligations 8,822 456,613 465,435 Total $ 9,547 $ 498,587 $ 508,134 The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in Occupancy on our condensed consolidated statement of operations as follows (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Operating lease cost $ 14,949 $ 17,442 $ 36,939 $ 41,114 Finance lease cost: Amortization of right of use assets 185 193 388 441 Interest on lease liabilities 124 125 262 294 Total finance lease cost $ 309 $ 318 $ 650 $ 735 Variable lease cost 4,988 6,647 13,305 15,532 Total $ 20,246 $ 24,407 $ 50,894 $ 57,381 Maturities of our lease liabilities as of July 12, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 889 $ 49,486 $ 50,375 2021 1,393 75,225 76,618 2022 1,527 73,836 75,363 2023 1,406 71,959 73,365 2024 1,422 69,497 70,919 Thereafter 11,464 384,928 396,392 Total future lease liability $ 18,101 $ 724,931 $ 743,032 Less imputed interest 4,499 221,177 225,676 Fair value of lease liability $ 13,602 $ 503,754 $ 517,356 Supplemental cash flow information related to leases is as follows (in thousands, except other information): Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 17,188 $ 39,407 Finance leases 262 261 Cash flows from financing activities Cash paid related to lease liabilities Finance leases — 461 Cash paid for amounts included in the measurement of lease liabilities: $ 17,450 $ 40,129 Right of use assets obtained in exchange for operating lease obligations $ 19,781 $ 7,022 Right of use assets obtained in exchange for finance lease obligations $ 4,224 $ 1,669 Other information related to operating leases as follows: Weighted average remaining lease term 10.44 years 11.17 years Weighted average discount rate 7.25 % 7.35 % Other information related to financing leases as follows: Weighted average remaining lease term 12.22 years 11.79 years Weighted average discount rate 4.96 % 4.74 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jul. 12, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The following table presents goodwill as of July 12, 2020 and December 29, 2019 (in thousands): Balance, December 29, 2019 $ 96,397 Foreign currency translation adjustment (983) Goodwill impairment (1) (95,414) Balance, July 12, 2020 $ — ——————————————————— (1) See Note 2, COVID-19 Pandemic , for further discussion of goodwill impairment recognized during the twenty-eight weeks ended July 12, 2020. The following table presents intangible assets as of July 12, 2020 and December 29, 2019 (in thousands): July 12, 2020 December 29, 2019 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Franchise rights $ 50,584 $ (36,192) $ 14,392 $ 53,336 $ (35,896) $ 17,440 Leasehold interests 13,001 (9,056) 3,945 13,001 (8,794) 4,207 Liquor licenses and other 10,633 (9,893) 740 10,737 (9,869) 868 $ 74,218 $ (55,141) $ 19,077 $ 77,074 $ (54,559) $ 22,515 Indefinite-lived intangible assets: Liquor licenses and other $ 7,460 $ — $ 7,460 $ 7,460 $ — $ 7,460 Intangible assets, net $ 81,678 $ (55,141) $ 26,537 $ 84,534 $ (54,559) $ 29,975

(Loss) Earnings Per Share

(Loss) Earnings Per Share	6 Months Ended
	Jul. 12, 2020
Earnings Per Share [Abstract]
(Loss) Earnings Per Share	(Loss) Earnings Per Share Basic (loss) earnings per share amounts are calculated by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted (loss) earnings per share amounts are calculated based upon the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares are excluded from the computation in periods in which they have an anti-dilutive effect. Diluted (loss) earnings per share reflect the potential dilution that could occur if holders of options exercised their options into common stock. The Company uses the treasury stock method to calculate the effect of outstanding stock options. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Basic weighted average shares outstanding 13,741 12,970 13,262 12,969 Dilutive effect of stock options and awards — 73 — 78 Diluted weighted average shares outstanding 13,741 13,043 13,262 13,047 Awards excluded due to anti-dilutive effect on diluted earnings per share 865 378 317 457

Other Charges

Other Charges	6 Months Ended
	Jul. 12, 2020
Other Income and Expenses [Abstract]
Other Charges	Other Charges Other charges consist of the following (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Goodwill impairment $ — $ — $ 95,414 $ — Restaurant asset impairment 5,281 14,064 20,779 14,064 Restaurant closure and refranchising costs 7,602 1,001 9,008 1,305 Litigation contingencies — — 4,500 — Board and stockholder matter costs 967 1,152 2,449 1,152 Severance and executive transition — 370 881 2,364 COVID-19 related costs 651 — 849 — Executive retention — 260 — 360 Other charges $ 14,501 $ 16,847 $ 133,880 $ 19,245 The Company recognized non-cash impairment charges related to goodwill and assets at 10 and 34 Company-owned restaurants during the twelve and twenty-eight weeks ended July 14, 2020 resulting from quantitative impairment analyses; see Note 2, COVID-19 Pandemic, for further discussion. Non-cash impairment charges resulting from restaurant closures are included within Restaurant closure and refranchising costs. Restaurant closure and refranchising costs include the restaurant operating costs of the 35 Company-owned restaurants that remained temporarily closed due to the COVID-19 pandemic. Litigation contingencies include legal settlement costs related to two class action employment cases. Severance and executive transition in 2020 primarily relates to severance costs associated with the reduction in force of restaurant support center Team Members.

Borrowings

Borrowings	6 Months Ended
	Jul. 12, 2020
Debt Disclosure [Abstract]
Borrowings	Borrowings Total borrowings as of July 12, 2020 and December 29, 2019 were $207.5 million and $206.9 million. As of July 12, 2020, the current portion of long-term borrowings was $9.7 million; no borrowings as of December 29, 2019 were classified as current. On January 10, 2020, the Company replaced its prior credit facility with a new Amended and Restated Credit Agreement (the "Credit Facility") which provides for a $161.5 million revolving line of credit and a $138.5 million term loan, which requires quarterly principal payments at a rate of 7.0% per annum of the original principal balance, for a total borrowing capacity of $300 million. Borrowings under the Credit Facility are subject to interest rates based on the London Interbank Offered Rate ("LIBOR"). The publication of LIBOR is expected to discontinue in December 2021, however, we anticipate an amended credit agreement will be executed at the new applicable interest rate. The Credit Facility will mature on January 10, 2025. On May 29, 2020, the Company entered into the First Amendment to the Credit Agreement and Waiver (the "Amendment") which set forth the following: increased pricing under the Credit Facility, waiver of the lease adjusted leverage covenant ratio ("LALR ratio") and fixed charge coverage covenant ratio ("FCC ratio") for the remainder of fiscal year 2020, adjustments allowable during the first three fiscal quarters of 2021 to the LALR ratio, including increasing the maximum LALR ratio permitted and allowing the use of a seasonally adjusted annualized consolidated EBITDA in the LALR ratio calculation, and to the FCC ratio, including only being calculated for applicable periods since the beginning of 2021, and added various other additional covenant requirements. The covenant relief in the Amendment was contingent on the Company raising capital of at least $25 million. As a result of the Amendment, the Company repaid $59 million on the revolving line of credit such that the amount of the Company's consolidated cash on hand did not exceed $30 million as of the Amendment Effective Date; paid certain customary amendment fees to lenders and advisors totaling approximately $1.9 million, which were capitalized as deferred loan fees and will be amortized over the remaining term of the Credit Facility; and issued 2.6 million shares of common stock raising proceeds of $28.7 million, net of stock issuance costs, which were used to pay down the revolving line of credit as required by the Amendment. As of July 12, 2020, the Company had outstanding borrowings under the Credit Facility of $206.6 million, in addition to amounts issued under letters of credit of $7.5 million. The amounts issued under letters of credit reduce the amount available under the facility but were not recorded as debt. As of December 29, 2019, the Company had outstanding borrowings under the prior credit facility of $206.0 million, in addition to amounts issued under letters of credit of $7.5 million. Loan origination costs associated with the Credit Facility are included as deferred costs in Other assets, net in the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs were $3.7 million and $1.0 million as of July 12, 2020 and December 29, 2019.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 12, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts of the Company's cash and cash equivalents, accounts receivable, accounts payable, and current accrued expenses and other liabilities approximate fair value due to the short term nature or maturity of the instruments. The following tables present the Company's assets measured at fair value on a recurring basis included in Other assets, net on the accompanying condensed consolidated balance sheets as of July 12, 2020 and December 29, 2019 (in thousands): July 12, 2020 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,022 $ 6,022 $ — $ — Total assets measured at fair value $ 6,022 $ 6,022 $ — $ — December 29, 2019 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 7,337 $ 7,337 $ — $ — Total assets measured at fair value $ 7,337 $ 7,337 $ — $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the condensed consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, goodwill, and other intangible assets. These assets are measured at fair value if determined to be impaired. As of July 12, 2020, the Company measured non-financial assets for impairment using continuing and projected future cash flows, as discussed in Note 2, COVID-19 Pandemic , which were based on significant inputs not observable in the market and thus represented a level 3 fair value measurement. Based on our restaurant asset impairment analyses during fiscal year 2020, we impaired long-lived assets at 34 Company-owned restaurants with carrying values of $58 million. We determined the fair value of these long-lived restaurant assets to be $34.9 million. See Note 2, COVID-19 Pandemic , for discussion of the first quarter 2020 nonrecurring fair value measurement of goodwill and related impairment charges. Disclosures of Fair Value of Other Assets and Liabilities The Company's liability under its Credit Facility is carried at historical cost in the accompanying condensed consolidated balance sheets. Due to market interest rates decreasing during the second fiscal quarter of 2020, the Company determined the carrying value of the liability under its Credit Facility did not approximate fair value. The carrying value and fair value of the Credit Facility as of July 12, 2020 were $206.6 million and $217.6 million. As of December 29, 2019, the carrying value of the Credit Facility approximated fair value as the interest rate on the instrument approximated current market rates. The interest rate on the Credit Facility represents a level 2 fair value input.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 12, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies On July 14, 2017, a current hourly employee filed a class action lawsuit alleging that the Company failed to provide required meal breaks and rest periods and failed to reimburse business expenses, among other claims. The case is styled Manuel Vigueras v. Red Robin International, Inc. and is currently pending before the United States District Court in Santa Ana, California. In a related action, on September 21, 2017, a companion case, styled Genny Vasquez v. Red Robin International, Inc. was filed and is currently pending in California Superior Court in Santa Ana, California and involves claims under the California Private Attorneys' General Act that partially overlap the claims made in the Vigueras matter. In the first quarter of 2020, the Company reached a tentative settlement agreement resolving all claims and the cost of class administration in both cases for an aggregate $8.5 million. The Company is in the process of finalizing the settlement agreement, which will then be submitted to the court for approval. Court approval is required before any settlement agreement between the parties becomes final. An additional $4.5 million was accrued to reach the $8.5 million settlement amount during the first fiscal quarter of 2020. Amounts recorded in the periods presented for litigation contingencies are disclosed in Note 7, Other Charges . In the normal course of business, there are various claims in process, matters in litigation, and other contingencies. These include employment-related claims and claims alleging illness, injury, or other food quality, health, or operational issues. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. We review the adequacy of accruals and disclosures pertaining to litigation matters each quarter in consultation with legal counsel, and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements. While it is not possible to predict the outcome of these claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the condensed consolidated financial statements.

Basis of Presentation and Rec_2

Basis of Presentation and Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jul. 12, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in the Company's annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 29, 2019 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2019, filed with the SEC on February 25, 2020. Our current and prior year periods, period end dates, and number of weeks included in the period are summarized in the table below: Periods Period End Date Number of Weeks in Period Current and Prior Fiscal Quarters: Second Quarter 2020 July 12, 2020 12 Second Quarter 2019 July 14, 2019 12 First Quarter 2020 April 19, 2020 16 First Quarter 2019 April 21, 2019 16 Current and Prior Fiscal Years: Fiscal Year 2020 December 27, 2020 52 Fiscal Year 2019 December 29, 2019 52
Reclassifications	Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. For the twenty-eight weeks ended July 14, 2019, the Company reclassified the following within net cash (used in) provided by operating activities on the condensed consolidated statements of cash flows: $14.1 million from Non-cash other charges to Goodwill and restaurant asset impairment and $1.5 million from Other operating assets and liabilities, net to Lease assets, net of liabilities.
Substantial Doubt about Going Concern, Resolution of Conditions or Events	Going Concern - Substantial Doubt Resolved As required by ASC Topic 205-40, Presentation of Financial Statements - Going Concern , management has assessed the Company's ability to continue as a going concern for one year from the financial statement issuance date for the fiscal quarter ended July 12, 2020. On May 29, 2020, the Company obtained the First Amendment to the Credit Agreement and Waiver (the "Amendment") to the Company's Amended and Restated Credit Agreement (the "Credit Facility"). The Amendment provided relief from our existing events of default under the Credit Facility and provided covenant relief subject to the successful completion of a $25 million capital raise on or before November 13, 2020, as further disclosed in Note 8, Borrowings . As of the issuance date of our first quarter 2020 financial statements, the Company disclosed, as required under applicable accounting standards, that substantial doubt existed surrounding the Company's ability to meet its obligations within one year of the issuance date of the first quarter Form 10-Q because the capital raise was outside of management's control at the time.
Recent Accounting Pronouncements and Recently Adopted Accounting Standards	Recent Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Update 2019-12, Income Taxes ("Topic 740") as part of its Simplification Initiative. This guidance provides amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for annual and interim reporting periods beginning after December 15, 2020, and early adoption is permitted. We are currently evaluating the full impact this guidance will have on our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's condensed consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 12, 2020
Revenue from Contract with Customer [Abstract]
Schedule of revenue disaggregated by type of good or service	In the following table, revenue is disaggregated by type of good or service (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Restaurant revenue $ 160,144 $ 302,418 $ 461,578 $ 702,902 Franchise revenue (1) 380 4,389 3,277 9,752 Gift card breakage 392 639 1,806 4,320 Other revenue 206 535 526 873 Total revenues $ 161,122 $ 307,981 $ 467,187 $ 717,847 ——————————————————— (1) The decrease in Franchise revenue is driven by the temporary abatement and non-collection of franchise payments. See Note 2, COVID-19 Pandemic , for further discussion.
Schedule of components of unearned revenue	Components of Unearned revenue in the accompanying condensed consolidated balance sheets are as follows (in thousands): July 12, 2020 December 29, 2019 Unearned gift card revenue $ 33,306 $ 43,544 Deferred loyalty revenue $ 10,632 $ 10,679
Schedule of revenue recognized that were included in liability balances at the beginning of the fiscal year	Revenue recognized in the condensed consolidated statements of operations and comprehensive (loss) income for the redemption of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands): Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 Gift card revenue $ 12,990 $ 18,380

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 12, 2020
Leases [Abstract]
Schedule of Leased Assets and Liabilities	Leases are included in right-of-use assets, net, current portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of July 12, 2020 and December 29, 2019 as follows (in thousands): July 12, 2020 Finance Operating Total Right of use assets, net $ 11,340 $ 404,560 $ 415,900 Current portion of lease obligations 1,070 60,998 62,068 Long-term portion of lease obligations 12,532 442,756 455,288 Total $ 13,602 $ 503,754 $ 517,356 December 29, 2019 Finance Operating Total Right of use assets, net $ 7,552 $ 418,696 $ 426,248 Current portion of lease obligations 725 41,974 42,699 Long-term portion of lease obligations 8,822 456,613 465,435 Total $ 9,547 $ 498,587 $ 508,134
Lease cost	The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in Occupancy on our condensed consolidated statement of operations as follows (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Operating lease cost $ 14,949 $ 17,442 $ 36,939 $ 41,114 Finance lease cost: Amortization of right of use assets 185 193 388 441 Interest on lease liabilities 124 125 262 294 Total finance lease cost $ 309 $ 318 $ 650 $ 735 Variable lease cost 4,988 6,647 13,305 15,532 Total $ 20,246 $ 24,407 $ 50,894 $ 57,381
Schedule of operating lease maturities	Maturities of our lease liabilities as of July 12, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 889 $ 49,486 $ 50,375 2021 1,393 75,225 76,618 2022 1,527 73,836 75,363 2023 1,406 71,959 73,365 2024 1,422 69,497 70,919 Thereafter 11,464 384,928 396,392 Total future lease liability $ 18,101 $ 724,931 $ 743,032 Less imputed interest 4,499 221,177 225,676 Fair value of lease liability $ 13,602 $ 503,754 $ 517,356
Schedule of finance lease maturities	Maturities of our lease liabilities as of July 12, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 889 $ 49,486 $ 50,375 2021 1,393 75,225 76,618 2022 1,527 73,836 75,363 2023 1,406 71,959 73,365 2024 1,422 69,497 70,919 Thereafter 11,464 384,928 396,392 Total future lease liability $ 18,101 $ 724,931 $ 743,032 Less imputed interest 4,499 221,177 225,676 Fair value of lease liability $ 13,602 $ 503,754 $ 517,356
Supplemental cash flow related to leases	Supplemental cash flow information related to leases is as follows (in thousands, except other information): Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 17,188 $ 39,407 Finance leases 262 261 Cash flows from financing activities Cash paid related to lease liabilities Finance leases — 461 Cash paid for amounts included in the measurement of lease liabilities: $ 17,450 $ 40,129 Right of use assets obtained in exchange for operating lease obligations $ 19,781 $ 7,022 Right of use assets obtained in exchange for finance lease obligations $ 4,224 $ 1,669 Other information related to operating leases as follows: Weighted average remaining lease term 10.44 years 11.17 years Weighted average discount rate 7.25 % 7.35 % Other information related to financing leases as follows: Weighted average remaining lease term 12.22 years 11.79 years Weighted average discount rate 4.96 % 4.74 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jul. 12, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table presents goodwill as of July 12, 2020 and December 29, 2019 (in thousands): Balance, December 29, 2019 $ 96,397 Foreign currency translation adjustment (983) Goodwill impairment (1) (95,414) Balance, July 12, 2020 $ — ——————————————————— (1) See Note 2, COVID-19 Pandemic , for further discussion of goodwill impairment recognized during the twenty-eight weeks ended July 12, 2020.
Schedule of intangible assets subject to amortization	The following table presents intangible assets as of July 12, 2020 and December 29, 2019 (in thousands): July 12, 2020 December 29, 2019 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Franchise rights $ 50,584 $ (36,192) $ 14,392 $ 53,336 $ (35,896) $ 17,440 Leasehold interests 13,001 (9,056) 3,945 13,001 (8,794) 4,207 Liquor licenses and other 10,633 (9,893) 740 10,737 (9,869) 868 $ 74,218 $ (55,141) $ 19,077 $ 77,074 $ (54,559) $ 22,515 Indefinite-lived intangible assets: Liquor licenses and other $ 7,460 $ — $ 7,460 $ 7,460 $ — $ 7,460 Intangible assets, net $ 81,678 $ (55,141) $ 26,537 $ 84,534 $ (54,559) $ 29,975
Schedule of intangible assets not subject to amortization	The following table presents intangible assets as of July 12, 2020 and December 29, 2019 (in thousands): July 12, 2020 December 29, 2019 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Franchise rights $ 50,584 $ (36,192) $ 14,392 $ 53,336 $ (35,896) $ 17,440 Leasehold interests 13,001 (9,056) 3,945 13,001 (8,794) 4,207 Liquor licenses and other 10,633 (9,893) 740 10,737 (9,869) 868 $ 74,218 $ (55,141) $ 19,077 $ 77,074 $ (54,559) $ 22,515 Indefinite-lived intangible assets: Liquor licenses and other $ 7,460 $ — $ 7,460 $ 7,460 $ — $ 7,460 Intangible assets, net $ 81,678 $ (55,141) $ 26,537 $ 84,534 $ (54,559) $ 29,975

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	6 Months Ended
	Jul. 12, 2020
Earnings Per Share [Abstract]
Schedule of computations for basic and diluted earnings per share	Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Basic weighted average shares outstanding 13,741 12,970 13,262 12,969 Dilutive effect of stock options and awards — 73 — 78 Diluted weighted average shares outstanding 13,741 13,043 13,262 13,047 Awards excluded due to anti-dilutive effect on diluted earnings per share 865 378 317 457

Other Charges (Tables)

Other Charges (Tables)	6 Months Ended
	Jul. 12, 2020
Other Income and Expenses [Abstract]
Summary of other charges	Other charges consist of the following (in thousands): Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2020 July 14, 2019 July 12, 2020 July 14, 2019 Goodwill impairment $ — $ — $ 95,414 $ — Restaurant asset impairment 5,281 14,064 20,779 14,064 Restaurant closure and refranchising costs 7,602 1,001 9,008 1,305 Litigation contingencies — — 4,500 — Board and stockholder matter costs 967 1,152 2,449 1,152 Severance and executive transition — 370 881 2,364 COVID-19 related costs 651 — 849 — Executive retention — 260 — 360 Other charges $ 14,501 $ 16,847 $ 133,880 $ 19,245

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 12, 2020
Fair Value Disclosures [Abstract]
Schedule of fair value assets measured on recurring basis	The following tables present the Company's assets measured at fair value on a recurring basis included in Other assets, net on the accompanying condensed consolidated balance sheets as of July 12, 2020 and December 29, 2019 (in thousands): July 12, 2020 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,022 $ 6,022 $ — $ — Total assets measured at fair value $ 6,022 $ 6,022 $ — $ — December 29, 2019 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 7,337 $ 7,337 $ — $ — Total assets measured at fair value $ 7,337 $ 7,337 $ — $ —

Basis of Presentation and Rec_3

Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) shares in Thousands, $ in Thousands	Jun. 17, 2020USD ($)shares	Jul. 12, 2020USD ($)provincesegmentstaterestaurant	Jul. 14, 2019USD ($)
Number of operating segments | segment		1
Number of reportable segments | segment		1
Stock Issued During Period, Shares, New Issues (Shares) | shares	2,600
Goodwill and restaurant asset impairment		$ 116,193	$ 14,064
Lease assets, net of liabilities		17,666	$ 1,502
Debt Covenant, Required Capital Raise to Meet Minimum Liquidity Event		$ 25,000
Net Proceeds from Issuance of Common Shares	$ 28,700
Entity Operated Units [Member]
Number of restaurants | restaurant		450
Number of states in which restaurants are located | state		38
Franchised Units [Member]
Number of restaurants | restaurant		102
Number of states in which restaurants are located | state		16
Number of Canadian provinces in which restaurants are located | province		1

COVID-19 Pandemic (Details)

COVID-19 Pandemic (Details) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended
	Jul. 12, 2020USD ($)restaurant	Jul. 14, 2019USD ($)	Apr. 19, 2020USD ($)restaurant	Jul. 12, 2020USD ($)restaurant	Jul. 14, 2019USD ($)
Rent [Line Items]
Lease Classification, Finance to Operating	1			1
Lease Classification, Operating to Finance	2			2
Lease Modification, Liability Remeasurement	$ (21,700)			$ (21,700)
Lease Modification, Right of Use Asset Adjustment	21,700			21,700
Goodwill impairment	0	$ 0		95,414	$ 0
Restaurant asset impairment	5,281	$ 14,064	$ 15,500	$ 20,779	$ 14,064
Asset Impairment Charges, Closed Restaurants	$ 2,300
Number of restaurants impaired | restaurant	10		24	34
Income Taxes Receivable	$ 35,000			$ 35,000
Estimated Cash Tax Refund, Low End of Range	14,000			14,000
Estimated Cash Tax Refund, High End of Range	17,000			17,000
Previously utilized FICA tip credit				58,000
Valuation allowance attributable to FICA tip credits	79,000			79,000
Deferred Tax Asset, Valuation Allowance, Recognized in Period	27,000
Deferred Tax Assets, Deferred Income	$ 90,000			$ 90,000
Currently Operating Restaurants [Member]
Rent [Line Items]
Number of restaurants impaired | restaurant	6
Closed Restaurants [Member]
Rent [Line Items]
Number of restaurants impaired | restaurant	4

Revenue - Schedule of Revenue D

Revenue - Schedule of Revenue Disaggregation by Product Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019	Jul. 12, 2020	Jul. 14, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 161,122	$ 307,981	$ 467,187	$ 717,847
Restaurant revenue
Disaggregation of Revenue [Line Items]
Total revenues	160,144	302,418	461,578	702,902
Franchise revenue
Disaggregation of Revenue [Line Items]
Total revenues	380	4,389	3,277	9,752
Gift card breakage
Disaggregation of Revenue [Line Items]
Total revenues	392	639	1,806	4,320
Other revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 206	$ 535	$ 526	$ 873

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Thousands	Jul. 12, 2020	Dec. 29, 2019
Disaggregation of Revenue [Line Items]
Unearned revenue	$ 43,938	$ 54,223
Gift card revenue
Disaggregation of Revenue [Line Items]
Unearned revenue	33,306	43,544
Deferred loyalty revenue
Disaggregation of Revenue [Line Items]
Unearned revenue	$ 10,632	$ 10,679

Revenue - Schedule of Revenue R

Revenue - Schedule of Revenue Recognized Included in Liability Balances at Beginning of Fiscal Year (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019
Gift card revenue
Disaggregation of Revenue [Line Items]
Gift card revenue	$ 12,990	$ 18,380

Leases Additional Balance Sheet

Leases Additional Balance Sheet information (Details) - USD ($) $ in Thousands	Jul. 12, 2020	Dec. 29, 2019
Finance
Right of use assets, net	$ 11,340	$ 7,552
Finance Lease Liabilities
Current portion of lease obligations	1,070	725
Long-term portion of lease obligations	12,532	8,822
Total	13,602	9,547
Operating
Right of use assets, net	404,560	418,696
Operating Lease Liabilities
Current portion of lease obligations	60,998	41,974
Long-term portion of lease obligations	442,756	456,613
Total	503,754	498,587
Total
Right of use assets, net	415,900	426,248
Total
Current portion of lease obligations	62,068	42,699
Long-term portion of lease obligations	455,288	465,435
Total	$ 517,356	$ 508,134

Leases Lease Cost (Details)

Leases Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019	Jul. 12, 2020	Jul. 14, 2019
Leases [Abstract]
Operating lease cost	$ 14,949	$ 17,442	$ 36,939	$ 41,114
Finance lease cost:
Amortization of right of use assets	185	193	388	441
Interest on lease liabilities	124	125	262	294
Total finance lease cost	309	318	650	735
Variable lease cost	4,988	6,647	13,305	15,532
Total	$ 20,246	$ 24,407	$ 50,894	$ 57,381

Leases Schedules of Lease Matur

Leases Schedules of Lease Maturities (Details) - USD ($) $ in Thousands	Jul. 12, 2020	Dec. 29, 2019
Finance Leases
Remainder of 2020	$ 889
2021	1,393
2022	1,527
2023	1,406
2024	1,422
Thereafter	11,464
Total future lease liability	18,101
Less imputed interest	4,499
Total	13,602	$ 9,547
Operating Leases
Remainder of 2020	49,486
2021	75,225
2022	73,836
2023	71,959
2024	69,497
Thereafter	384,928
Total future lease liability	724,931
Less imputed interest	221,177
Fair value of lease liability	503,754	$ 498,587
Total
Remainder of 2020	50,375
2021	76,618
2022	75,363
2023	73,365
2024	70,919
Thereafter	396,392
Total future lease liability	743,032
Less imputed interest	225,676
Fair value of lease liability	$ 517,356

Leases Supplemental Cash Flow I

Leases Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019
Cash flows from operating activities
Operating leases	$ 17,188	$ 39,407
Finance leases	262	261
Cash flows from financing activities
Finance leases	0	461
Cash paid for amounts included in the measurement of lease liabilities:	17,450	40,129
Right of use assets obtained in exchange for operating lease obligations	19,781	7,022
Right of use assets obtained in exchange for finance lease obligations	$ 4,224	$ 1,669
Other information related to operating leases as follows:
Weighted average remaining lease term	10 years 5 months 8 days	11 years 2 months 1 day
Weighted average discount rate	7.25%	7.35%
Other information related to financing leases as follows:
Weighted average remaining lease term	12 years 2 months 19 days	11 years 9 months 14 days
Weighted average discount rate	4.96%	4.74%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019	Jul. 12, 2020	Jul. 14, 2019
Goodwill [Roll Forward]
Beginning balance			$ 96,397
Foreign currency translation adjustment			(983)
Goodwill impairment	$ 0	$ 0	(95,414)	$ 0
Ending balance	$ 0		$ 0

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 12, 2020	Dec. 29, 2019
Intangible Assets
Gross Carrying Amount	$ 74,218	$ 77,074
Accumulated Amortization	(55,141)	(54,559)
Net Carrying Amount	19,077	22,515
Intangible assets, gross carrying amount	81,678	84,534
Intangible assets, net carrying amount	26,537	29,975
Liquor licenses and other
Intangible Assets
Liquor licenses and other	7,460	7,460
Franchise rights
Intangible Assets
Gross Carrying Amount	50,584	53,336
Accumulated Amortization	(36,192)	(35,896)
Net Carrying Amount	14,392	17,440
Leasehold interests
Intangible Assets
Gross Carrying Amount	13,001	13,001
Accumulated Amortization	(9,056)	(8,794)
Net Carrying Amount	3,945	4,207
Liquor licenses and other
Intangible Assets
Gross Carrying Amount	10,633	10,737
Accumulated Amortization	(9,893)	(9,869)
Net Carrying Amount	$ 740	$ 868

(Loss) Earnings Per Share - Sum

(Loss) Earnings Per Share - Summary of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019	Jul. 12, 2020	Jul. 14, 2019
Earnings Per Share Reconciliation [Abstract]
Basic weighted average shares outstanding (in shares)	13,741	12,970	13,262	12,969
Dilutive effect of stock options and awards (in shares)	0	73	0	78
Diluted weighted average shares outstanding (in shares)	13,741	13,043	13,262	13,047
Awards excluded due to anti-dilutive effect on diluted earnings per share (in shares)	865	378	317	457

Other Charges - Summary of Othe

Other Charges - Summary of Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended
	Jul. 12, 2020	Jul. 14, 2019	Apr. 19, 2020	Jul. 12, 2020	Jul. 14, 2019
Property, Plant and Equipment [Line Items]
Goodwill impairment	$ 0	$ 0		$ 95,414	$ 0
Restaurant asset impairment	5,281	14,064	$ 15,500	20,779	14,064
Restaurant closure and refranchising costs	7,602	1,001		9,008	1,305
Litigation contingencies	0	0		4,500	0
Board and stockholder matter costs	967	1,152		2,449	1,152
Severance and executive transition	0	370		881	2,364
COVID-19 related costs	651	0		849	0
Executive retention	0	260		0	360
Other charges	$ 14,501	$ 16,847		$ 133,880	$ 19,245

Other Charges - Additional Info

Other Charges - Additional Information (Details) - restaurant	3 Months Ended	4 Months Ended	6 Months Ended
	Jul. 12, 2020	Apr. 19, 2020	Jul. 12, 2020
Other Income and Expenses [Abstract]
Number of restaurants impaired	10	24	34

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($)	May 29, 2020	Jul. 12, 2020	Jun. 17, 2020	Jan. 10, 2020	Dec. 29, 2019
Borrowings
Debt, Long-term and Short-term, Combined Amount		$ 207,500,000			$ 206,900,000
Outstanding borrowings considered short-term		(9,692,000)			0
Principal Repayment Rate				7.00%
Loan origination costs		3,700,000			1,000,000
Net Proceeds from Issuance of Common Shares			$ 28,700,000
Credit Facility
Borrowings
Term Loan Principal				$ 138,500,000
Debt Instrument, Face Amount				300,000,000
Credit Facility | Revolving credit facility
Borrowings
Amounts outstanding					206,000,000
Credit Facility | Letter of credit
Borrowings
Amounts outstanding					$ 7,500,000
Credit Facility | Line of credit
Borrowings
Amounts outstanding		206,600,000
Credit Facility | Letter of credit | Line of credit
Borrowings
Amounts outstanding		$ 7,500,000
Revolving credit facility | Revolving credit facility
Borrowings
Maximum borrowing capacity				$ 161,500,000
Amended Credit Agreement [Member]
Borrowings
Debt Covenant, Maximum Cash on Hand	$ 30,000,000
Repayments of Debt	59,000,000
Payments of Financing Costs	$ 1,900,000

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jul. 12, 2020	Dec. 29, 2019
Assets:
Investments in rabbi trust	$ 6,022	$ 7,337
Total assets measured at fair value	6,022	7,337
Level 1
Assets:
Investments in rabbi trust	6,022	7,337
Total assets measured at fair value	6,022	7,337
Level 2
Assets:
Investments in rabbi trust	0	0
Total assets measured at fair value	0	0
Level 3
Assets:
Investments in rabbi trust	0	0
Total assets measured at fair value	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Millions	3 Months Ended	4 Months Ended	6 Months Ended
	Jul. 12, 2020USD ($)restaurant	Apr. 19, 2020restaurant	Jul. 12, 2020USD ($)restaurant
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of restaurants impaired | restaurant	10	24	34
Restaurants
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Restaurants carrying value	$ 58		$ 58
Fair Value, Impaired Restaurant Assets	34.9		34.9
Credit Facility | Line of credit
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Long-term Debt, Fair Value	217.6		217.6
Amounts outstanding	$ 206.6		$ 206.6

Commitment and Contingencies (D

Commitment and Contingencies (Details) - Settled Litigation $ in Millions	3 Months Ended
	Jul. 12, 2020USD ($)
Loss Contingencies [Line Items]
Settlement of litigation	$ 8.5
Additional litigation expenses accrued	$ 4.5

Uncategorized Items - rrgb-2020

Label	Element	Value
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (15,172,000)
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (15,172,000)