Red Robin Gourmet Burgers (RRGB) 10-Q 2 Nov 22 2022 Q3 Quarterly report Financial data

COVER PAGE

COVER PAGE - shares	9 Months Ended
	Oct. 02, 2022	Oct. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 02, 2022
Document Transition Report	false
Entity File Number	001-34851
Entity Registrant Name	RED ROBIN GOURMET BURGERS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-1573084
Entity Address, Address Line One	10000 E. Geddes Avenue
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Englewood
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80112
City Area Code	(303)
Local Phone Number	846-6000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Stock, $0.001 par value	Common Stock, $0.001 par value
Trading Symbol	RRGB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		15,928,045
Entity Central Index Key	0001171759
Current Fiscal Year End Date	--12-25
Document Fiscal Year Focus	2022
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 26, 2021
Current assets:
Cash and cash equivalents	$ 50,040	$ 22,750
Accounts receivable, net	11,915	21,400
Inventories	25,212	25,219
Income tax receivable	754	15,824
Prepaid expenses and other current assets	13,044	16,963
Total current assets	109,055	102,156
Property and equipment, net	342,386	386,336
Operating lease assets, net	375,747	400,825
Intangible assets, net	19,320	21,292
Restricted cash	8,090	0
Other assets, net	14,434	18,389
Total assets	860,942	928,998
Current liabilities:
Accounts payable	33,814	32,510
Accrued payroll and payroll-related liabilities	34,040	32,584
Unearned revenue	37,539	54,214
Current portion of operating lease obligations	47,726	48,842
Current portion of long-term debt	2,000	9,692
Accrued liabilities and other	50,482	45,458
Total current liabilities	205,601	223,300
Long-term debt	189,320	167,263
Long-term portion of operating lease obligations	401,274	435,136
Other non-current liabilities	13,120	26,325
Total liabilities	809,315	852,024
Commitments and contingencies (see Note 8. Commitments and Contingencies)
Stockholders' equity
Common stock; $0.001 par value: 45,000 shares authorized; 20,449 shares issued; 15,900 and 15,722 shares outstanding as of October 2, 2022 and December 26, 2021	20	20
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of October 2, 2022 and December 26, 2021	0	0
Treasury stock 4,549 and 4,727 shares, at cost, as of October 2, 2022 and December 26, 2021	(184,169)	(192,803)
Paid-in capital	242,235	242,560
Accumulated other comprehensive income (loss), net of tax	(51)	1
Retained Earnings	(6,408)	27,196
Total stockholders' equity	51,627	76,974
Total liabilities and stockholders' equity	$ 860,942	$ 928,998

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Oct. 02, 2022	Dec. 26, 2021
Statement of Financial Position [Abstract]
Common stock, Par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	20,449,000
Common stock, shares outstanding	15,900,000	15,722,000
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, Par value (in dollars per share)	$ 0.001	$ 0.001
Treasury stock, shares	4,549,000	4,727,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Revenues:
Total revenues	$ 286,888	$ 275,444	$ 976,528	$ 878,694
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales	70,640	62,671	234,283	193,754
Labor	100,522	99,725	340,273	310,333
Other operating	52,858	51,462	172,725	156,102
Occupancy	22,828	22,519	76,406	74,233
Depreciation and amortization	17,368	18,881	58,924	63,984
Selling, General and Administrative Expense	35,692	30,343	102,168	89,299
Pre-opening costs	217	418	514	792
Other charges (gains), net	(5,217)	1,561	8,236	9,228
Total costs and expenses	294,908	287,580	993,529	897,725
Loss from operations	(8,020)	(12,136)	(17,001)	(19,031)
Other expense:
Interest expense, net and other	4,590	2,870	16,151	9,986
Loss before income taxes	(12,610)	(15,006)	(33,152)	(29,017)
Income tax provision (benefit)	(43)	(26)	453	(328)
Net loss	$ (12,567)	$ (14,980)	$ (33,605)	$ (28,689)
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ (0.79)	$ (0.95)	$ (2.12)	$ (1.83)
Diluted (in dollars per share)	$ (0.79)	$ (0.95)	$ (2.12)	$ (1.83)
Weighted average shares outstanding:
Basic (in shares)	15,892	15,709	15,816	15,647
Diluted (in shares)	15,892	15,709	15,816	15,647
Other comprehensive income (loss):
Foreign currency translation adjustment	$ (45)	$ (6)	$ (51)	$ 14
Other comprehensive income (loss), net of tax	(45)	(6)	(51)	14
Total comprehensive loss	(12,612)	(14,986)	(33,656)	(28,675)
Restaurant revenue
Revenues:
Total revenues	282,449	270,202	951,718	861,036
Franchise and other revenues
Revenues:
Total revenues	$ 4,439	$ 5,242	$ 24,810	$ 17,658

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 Income/(Loss), net of tax	Retained Earnings (Deficit)
Beginning balance (in shares) at Dec. 27, 2020		20,449
Beginning balance (in shares) at Dec. 27, 2020			4,901
Beginning balance at Dec. 27, 2020	$ 120,713	$ 20	$ (199,908)	$ 243,407	$ (4)	$ 77,198
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)			(74)
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans	(615)		$ 3,025	(3,640)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	880			880
Net loss	(8,713)					(8,713)
Other comprehensive income (loss), net of tax	21				21
Ending balance (in shares) at Apr. 18, 2021		20,449
Ending balance (in shares) at Apr. 18, 2021			4,827
Ending balance at Apr. 18, 2021	112,286	$ 20	$ (196,883)	240,647	17	68,485
Beginning balance (in shares) at Dec. 27, 2020		20,449
Beginning balance (in shares) at Dec. 27, 2020			4,901
Beginning balance at Dec. 27, 2020	120,713	$ 20	$ (199,908)	243,407	(4)	77,198
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,689)
Other comprehensive income (loss), net of tax	14
Ending balance (in shares) at Oct. 03, 2021		20,449
Ending balance (in shares) at Oct. 03, 2021			4,727
Ending balance at Oct. 03, 2021	96,165	$ 20	$ (192,819)	240,445	10	48,509
Beginning balance (in shares) at Apr. 18, 2021		20,449
Beginning balance (in shares) at Apr. 18, 2021			4,827
Beginning balance at Apr. 18, 2021	112,286	$ 20	$ (196,883)	240,647	17	68,485
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)			(95)
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans	297		$ 3,844	(3,547)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,577			1,577
Net loss	(4,996)					(4,996)
Other comprehensive income (loss), net of tax	(1)				(1)
Ending balance (in shares) at Jul. 11, 2021		20,449
Ending balance (in shares) at Jul. 11, 2021			4,732
Ending balance at Jul. 11, 2021	109,163	$ 20	$ (193,039)	238,677	16	63,489
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)			(5)
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans	(60)		$ 220	(280)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,048			2,048
Net loss	(14,980)					(14,980)
Other comprehensive income (loss), net of tax	(6)				(6)
Ending balance (in shares) at Oct. 03, 2021		20,449
Ending balance (in shares) at Oct. 03, 2021			4,727
Ending balance at Oct. 03, 2021	$ 96,165	$ 20	$ (192,819)	240,445	10	48,509
Beginning balance (in shares) at Dec. 26, 2021	15,722	20,449
Beginning balance (in shares) at Dec. 26, 2021	4,727		4,727
Beginning balance at Dec. 26, 2021	$ 76,974	$ 20	$ (192,803)	242,560	1	27,196
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)			(64)
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans	(65)		$ 2,781	(2,846)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	3,042			3,042
Net loss	(3,105)					(3,105)
Other comprehensive income (loss), net of tax	11				11
Ending balance (in shares) at Apr. 17, 2022		20,449
Ending balance (in shares) at Apr. 17, 2022			4,663
Ending balance at Apr. 17, 2022	$ 76,857	$ 20	$ (190,022)	242,756	12	24,091
Beginning balance (in shares) at Dec. 26, 2021	15,722	20,449
Beginning balance (in shares) at Dec. 26, 2021	4,727		4,727
Beginning balance at Dec. 26, 2021	$ 76,974	$ 20	$ (192,803)	242,560	1	27,196
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(33,605)
Other comprehensive income (loss), net of tax	$ (51)
Ending balance (in shares) at Oct. 02, 2022	15,900	20,449
Ending balance (in shares) at Oct. 02, 2022	4,549		4,549
Ending balance at Oct. 02, 2022	$ 51,627	$ 20	$ (184,169)	242,235	(51)	(6,408)
Beginning balance (in shares) at Apr. 17, 2022		20,449
Beginning balance (in shares) at Apr. 17, 2022			4,663
Beginning balance at Apr. 17, 2022	76,857	$ 20	$ (190,022)	242,756	12	24,091
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)			(113)
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans	126		$ 5,817	(5,691)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,542			2,542
Net loss	(17,932)					(17,932)
Other comprehensive income (loss), net of tax	(18)				(18)
Ending balance (in shares) at Jul. 10, 2022		20,449
Ending balance (in shares) at Jul. 10, 2022			4,550
Ending balance at Jul. 10, 2022	61,575	$ 20	$ (184,205)	239,607	(6)	6,159
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)			(1)
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans	(4)		$ 36	(40)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,668			2,668
Net loss	(12,567)					(12,567)
Other comprehensive income (loss), net of tax	$ (45)				(45)
Ending balance (in shares) at Oct. 02, 2022	15,900	20,449
Ending balance (in shares) at Oct. 02, 2022	4,549		4,549
Ending balance at Oct. 02, 2022	$ 51,627	$ 20	$ (184,169)	$ 242,235	$ (51)	$ (6,408)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Cash flows from operating activities:
Net loss	$ (33,605)	$ (28,689)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	58,924	63,984
Gift card breakage	(8,289)	(3,231)
Restaurant asset impairment	13,048	1,357
Non-cash other charges, net	(2,287)	319
Stock-based compensation expense	8,229	4,501
(Gain) loss on sale of property, plant, and equipment	(9,204)	0
Other, net	3,240	2,228
Changes in operating assets and liabilities:
Accounts receivable	9,487	4,544
Income tax receivable	15,163	520
Inventories	(217)	0
Prepaid expenses and other current assets	2,183	1,014
Operating lease assets, net of liabilities	(10,562)	(12,711)
Trade accounts payable and accrued liabilities	9,621	16,948
Unearned revenue	(8,386)	(4,286)
Other operating assets and liabilities, net	(8,545)	(8,881)
Net cash provided by operating activities	38,800	37,617
Cash flows from investing activities:
Purchases of property, equipment, and intangible assets	(27,036)	(19,987)
Proceeds from sales of property and equipment and other investing activities	8,739	20
Net cash used in investing activities	(18,297)	(19,967)
Cash flows from financing activities:
Borrowings of long-term debt	282,151	109,500
Payments of long-term debt and finance leases	(266,275)	(125,216)
Debt issuance costs	(4,869)	(870)
Proceeds related to real estate sale	3,856	0
Proceeds from other financing activities, net	58	549
Net cash provided by (used in) financing activities	14,921	(16,037)
Effect of exchange rate changes on cash	(44)	28
Net change in cash and cash equivalents, and restricted cash	35,380	1,641
Cash and cash equivalents, beginning of period	22,750	16,116
Cash and cash equivalents, end of period	58,130	17,757
Supplemental disclosure of cash flow information
Income tax refunds received, net	(14,729)	(840)
Interest paid, net of amounts capitalized	$ 11,387	$ 7,586

Basis of Presentation and Recen

Basis of Presentation and Recent Accounting Pronouncements	9 Months Ended
	Oct. 02, 2022
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 October 2, 2022, the Company owned and operated 424 restaurants located in 38 states. The Company also had 101 franchised full-service restaurants in 16 states and one Canadian province. 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 26, 2021 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 26, 2021 filed with the SEC on March 10, 2022. Our current, prior, and upcoming 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: First Quarter 2022 April 17, 2022 16 First Quarter 2021 April 18, 2021 16 Second Quarter 2022 July 10, 2022 12 Second Quarter 2021 July 11, 2021 12 Third Quarter 2022 October 2, 2022 12 Third Quarter 2021 October 3, 2021 12 Current and Prior Fiscal Years: Fiscal Year 2022 December 25, 2022 52 Fiscal Year 2021 December 26, 2021 52 Upcoming fiscal year: Fiscal Year 2023 December 31, 2023 53 Reclassifications Certain amounts presented have been reclassified within the October 3, 2021 Condensed Consolidated Statement of Cash Flows to conform with the current period presentation, including prior year reclassifications from Lease assets, net of liabilities to Other operating assets and liabilities. The reclassifications had no effect on the Company’s cash flows from operations. Change in Accounting Estimate - Gift Card Breakage As part of its annual assessment of gift card breakage and during the forty weeks ended October 2, 2022, the Company re-evaluated the estimated redemption pattern related to gift cards and aligned the recognition of gift card breakage to the updated estimated redemption pattern. As a result, the Company recognized $5.9 million of additional gift card breakage in Franchise and other revenues, partially offset by $0.6 million of associated commissions costs recognized in Selling, general and administrative expenses, in the first quarter of 2022. This change in accounting estimate decreased net loss by $5.2 million, or $0.33 per basic and diluted share for the forty weeks ended October 2, 2022. The Company does not expect the impact of this change in estimate to be material to its future financial statements. Recent Tax Legislation The CHIPS and Science Act of 2022 (CHIPS) and the Inflation Reduction Act (IRA) of 2022 were signed into law by President Biden on August 9, 2022 and August 16, 2022, respectively. The legislation introduces new options for monetizing certain credits, a corporate alternative minimum tax, and a stock repurchase excise tax. The Company is currently evaluating the impact of CHIPS and IRA, but at present does not expect that any of the provisions included in these acts would result in a material impact to our deferred tax assets, liabilities, or income taxes payable.

Revenue

Revenue	9 Months Ended
	Oct. 02, 2022
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 Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Restaurant revenue $ 282,449 $ 270,202 $ 951,718 $ 861,036 Franchise revenue 4,249 4,303 14,891 13,123 Gift card breakage (1) 190 438 8,290 3,231 Other revenue — 501 1,629 1,304 Total revenues $ 286,888 $ 275,444 $ 976,528 $ 878,694 (1) During the forty weeks ended October 2, 2022, the Company re-evaluated the estimated redemption pattern related to gift cards and aligned the recognition of gift card breakage revenue to the updated estimated redemption pattern. See Note 1. Basis of Presentation and Recent Accounting Pronouncements. Contract liabilities Components of Unearned revenue in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands): October 2, 2022 December 26, 2021 Unearned gift card revenue $ 23,971 $ 41,128 Deferred loyalty revenue $ 13,568 $ 13,086 Revenue recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the redemption and breakage of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands): Forty Weeks Ended October 2, 2022 October 3, 2021 Gift card revenue $ 19,788 $ 14,448

Leases

Leases	9 Months Ended
	Oct. 02, 2022
Leases [Abstract]
Leases	Leases The Company's finance and operating lease assets and liabilities as of October 2, 2022 and December 26, 2021 were as follows (in thousands): October 2, 2022 Finance (1) Operating (2) Lease assets, net (3) $ 7,233 $ 375,747 Current portion of lease obligations 1,015 47,726 Long-term portion of lease obligations 8,630 401,274 Total $ 9,645 $ 449,000 December 26, 2021 Finance (1) Operating (2) Lease assets, net (3) $ 9,664 $ 400,825 Current portion of lease obligations 1,194 48,842 Long-term portion of lease obligations 10,765 435,136 Total $ 11,959 $ 483,978 (1) Finance lease assets and obligations are included in Other assets, net, Accrued liabilities and other current liabilities, and Other non-current liabilities on our October 2, 2022 and December 26, 2021 Condensed Consolidated Balance Sheets. (2) Operating lease assets and obligations are included in Operating lease assets, net, Current portion of operating lease liabilities, and Long-term portion of operating lease liabilities on our October 2, 2022 and December 26, 2021 Condensed Consolidated Balance Sheets. (3) The Lease assets, net caption includes the right of use assets associated with the Company's Finance and Operating leases, net of the associated amortization of these right of use assets. 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 and Comprehensive Loss as follows (in thousands): Twelve Weeks Ended Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Operating lease cost $ 15,793 $ 16,061 $ 53,904 $ 53,765 Finance lease cost: Amortization of right of use assets 261 197 841 657 Interest on lease liabilities 111 131 408 407 Total finance lease cost $ 372 $ 328 $ 1,249 $ 1,064 Variable lease cost 4,130 4,496 15,136 15,271 Total $ 20,295 $ 20,885 $ 70,289 $ 70,100 Maturities of our lease liabilities as of October 2, 2022 were as follows (in thousands): Finance Leases Operating Leases Remainder of 2022 $ 260 $ 13,829 2023 1,386 76,978 2024 1,479 76,047 2025 1,189 71,921 2026 1,245 66,078 Thereafter 6,454 323,647 Total future lease payments $ 12,013 $ 628,500 Less imputed interest 2,368 179,500 Total lease liability $ 9,645 $ 449,000 Supplemental cash flow and other information related to leases is as follows (in thousands, except other information): Forty Weeks Ended October 2, 2022 October 3, 2021 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 65,943 $ 68,036 Finance leases 408 406 Cash flows from financing activities Cash paid related to lease liabilities Finance leases 1,048 1,447 Cash paid for amounts included in the measurement of lease liabilities: $ 67,399 $ 69,889 Right of use assets obtained in exchange for operating lease obligations $ 11,604 $ 27,483 Right of use assets obtained in exchange for finance lease obligations $ 541 $ 988 Other information related to operating leases as follows: Weighted average remaining lease term (years) 9.21 9.86 Weighted average discount rate 7.24 % 7.01 % Other information related to finance leases as follows: Weighted average remaining lease term (years) 10.49 11.04 Weighted average discount rate 4.89 % 4.56 %

Loss Per Share

Loss Per Share	9 Months Ended
	Oct. 02, 2022
Earnings Per Share [Abstract]
Loss Per Share	Loss Per ShareBasic loss per share amounts are calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss 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 per share reflects the potential dilution that could occur if holders of options exercised their options into common stock. As the Company was in a net loss position for each of the twelve and forty weeks ended October 2, 2022 and October 3, 2021, all potentially dilutive common shares are considered anti-dilutive. The Company uses the treasury stock method to calculate the effect of outstanding stock options and awards. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Twelve Weeks Ended Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Basic weighted average shares outstanding 15,892 15,709 15,816 15,647 Dilutive effect of stock options and awards — — — — Diluted weighted average shares outstanding 15,892 15,709 15,816 15,647 Awards excluded due to anti-dilutive effect on diluted loss per share 869 545 1,010 390

Other Charges (Gains), net

Other Charges (Gains), net	9 Months Ended
	Oct. 02, 2022
Other Income and Expenses [Abstract]
Other Charges, net	Other Charges (Gains), net Other charges (gains), net consisted of the following (in thousands): Twelve Weeks Ended Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Asset impairment $ 2,187 $ — $ 13,048 $ 1,357 Gain on sale of restaurant property (9,204) — (9,204) — Executive transition 1,825 — 1,954 — Other financing costs 1,022 — 1,392 — COVID-19 related charges 123 299 423 1,112 Restaurant closure costs (gains) (1,570) 1,102 309 5,301 Closed corporate office, net of sublease income 267 — 267 — Litigation contingencies 133 160 47 1,330 Board and stockholder matter costs — — — 128 Other charges (gains), net $ (5,217) $ 1,561 $ 8,236 $ 9,228 The Company recognized non-cash impairment charges primarily related to restaurant assets at one and ten Company-owned restaurants during the twelve and forty weeks ended October 2, 2022, respectively, and one Company-owned restaurant for the forty weeks ended October 3, 2021. During the second quarter of 2022 the Company closed on an agreement to sell a restaurant property that the Company owned and leased back on a short-term basis. The Company collected initial net proceeds from the purchaser-lessor of $3.9 million, which represented a portion of the total consideration received from the sale. The Company did not recognize a sale in the second quarter of 2022 as certain criteria to recognize a sale in accordance with ASC Topic 842, Leases , and ASC Topic 606, Revenue from Contracts with Customers , were not met. During third quarter of 2022, the Company received the remaining proceeds, upon which the lease terminated and the sale transaction was completed, and recognized a $9.2 million gain on the sale of the restaurant property . The initial net proceeds of $3.9 million are included within cash flows from financing activities and the final proceeds received of $8.5 million are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows for the forty weeks ended October 2, 2022. Executive transition costs include costs associated with transitioning to a new Chief Executive Officer. Other financing costs include fees related to the entry by the Company into the new Credit Agreement (as defined below) on March 4, 2022 that were not capitalized with the closing of the Credit Facility. See Note 6. Borrowings. COVID-19 related costs include the costs of purchasing personal protective equipment for restaurant Team Members and Guests and emergency sick pay provided to restaurant Team Members related to the COVID-19 pandemic. Restaurant closure costs (gains) include the ongoing restaurant operating costs of the Company-owned restaurants incurred for permanently closed restaurants and closed restaurant lease termination gains or losses. Closed corporate office, net of sublease income includes expense and sublease income related to a corporate office facility that was vacated and subleased. Litigation contingencies during the twelve and forty weeks ended October 2, 2022 include the impact of cash proceeds received by the Company related to certain legal claims. Litigation contingencies during the twelve and forty weeks ended October 2, 2022 and October 3, 2021 include legal settlement costs accrued related to pending or threatened litigation.

Borrowings

Borrowings	9 Months Ended
	Oct. 02, 2022
Debt Disclosure [Abstract]
Borrowings	Borrowings Borrowings as of October 2, 2022 and December 26, 2021 are summarized below (in thousands): October 2, 2022 Weighted December 26, 2021 Weighted Revolving line of credit $ — $ 57,000 Term loan 199,000 8.70 % 119,080 7.10 % Notes payable, non-current 875 875 Total borrowings 199,875 176,955 Less: unamortized debt issuance costs and discounts (1) 8,555 — Less: current portion of long-term debt 2,000 9,692 Long-term debt $ 189,320 $ 167,263 Revolving line of credit unamortized deferred financing charges (1) : $ 1,042 $ 2,015 (1) Loan origination costs associated with the Company's credit facility are included as deferred costs in Other assets, net for financing charges allocated to the Revolving line of credit, and Long-term debt for financing charges associated with the term loan in the accompanying Condensed Consolidated Balance Sheets. Credit Agreement On March 4, 2022, the Company replaced its prior amended and restated credit agreement (the "Prior Credit Agreement") with a new Credit Agreement (the "Credit Agreement") by and among the Company, Red Robin International, Inc., as the borrower, the lenders from time to time party thereto, the issuing banks from time to time party thereto, Fortress Credit Corp., as Administrative Agent and as Collateral Agent and JPMorgan Chase Bank, N.A., as Sole Lead Arranger and Sole Bookrunner. The five-year $225.0 million Credit Agreement provides for a $25.0 million revolving line of credit and a $200.0 million term loan (collectively, the "Credit Facility"). The borrower maintains the option to increase the Credit Agreement in the future, subject to lenders’ participation, by up to an additional $40.0 million in the aggregate on the terms and conditions set forth in the Credit Agreement. The Credit Facility will mature on March 4, 2027. No amortization is required with respect to the revolving Credit Facility. The term loans require quarterly principal payments in an aggregate annual amount equal to 1.0% of the original principal amount of the term loan. The Credit Agreement's interest rate references the Secured Overnight Financing Rate ("SOFR"), a new index calculated by short-term repurchase agreements and backed by U.S. Treasury securities, or the Alternate Base Rate ("ABR"), which represents the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.5% per annum, or (c) one-month term SOFR plus 1.0% per annum. The variable interest rate on the term loan was 10.31% as of October 2, 2022. Red Robin International, Inc. is the borrower under the Credit Agreement, and certain of its subsidiaries and the Company are guarantors of borrower’s obligations under the Credit Agreement. Borrowings under the Credit Agreement are secured by substantially all of the assets of the borrower and the guarantors, including the Company, and are available to: (i) refinance certain existing indebtedness of the borrower and its subsidiaries, (ii) pay any fees and expenses in connection with the Credit Agreement, and (iii) provide for the working capital and general corporate requirements of the Company, the borrower and its subsidiaries, including permitted acquisitions and capital expenditures, but excluding restricted payments. On March 4, 2022, Red Robin International, Inc., the Company, and the guarantors also entered into a Pledge and Security Agreement (the “Security Agreement”) granting to the Administrative Agent a first priority security interest in substantially all of the assets of the borrower and the guarantors to secure the obligations under the Credit Agreement. This new Security Agreement replaced the existing security agreement, dated January 10, 2020, which was entered into in connection with the Prior Credit Agreement. Red Robin International, Inc. as the borrower is obligated to pay customary fees to the agents, lenders and issuing banks under the Credit Agreement with respect to providing, maintaining, or administering, as applicable, the credit facilities. In connection with entry into the new Credit Agreement, the Company’s Prior Credit Agreement was terminated. In connection with such termination and new borrowings under the new Credit Agreement, the Company paid off all outstanding borrowings, accrued interest, and fees under the Prior Credit Agreement. The summary descriptions of the Credit Agreement and the Security Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the Credit Agreement and the Security Agreement, respectively, which were filed as exhibits to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 10, 2022. During the first quarter of 2022, the Company expensed approximately $1.7 million of deferred financing charges related to the extinguishment of the Prior Credit Agreement on March 4, 2022. These charges were recorded to interest expense, net and other on the Condensed Consolidated Statements of Operations and Comprehensive Loss for the forty weeks ended October 2, 2022. In association with the execution of the new Credit Agreement, the Company recognized $4.8 million of deferred financing charges, and $6.1 million of original issuance discount.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 02, 2022
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 Company maintains a rabbi trust to fund obligations under a deferred compensation plan. Amounts in the rabbi trust are invested in mutual funds, which are designated as trading securities and carried at fair value and are included in Other assets, net in the accompanying consolidated balance sheets. Fair market value of mutual funds is measured using level 1 inputs (quoted prices for identical assets in active markets). 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 October 2, 2022 and December 26, 2021 (in thousands): October 2, 2022 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 4,020 $ 4,020 $ — $ — Total assets measured at fair value $ 4,020 $ 4,020 $ — $ — December 26, 2021 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,276 $ 6,276 $ — $ — Total assets measured at fair value $ 6,276 $ 6,276 $ — $ — 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, right of use assets, and other intangible assets. These assets are measured at fair value if determined to be impaired. The Company has measured non-financial assets for impairment using continuing and projected future cash flows, which were based on significant inputs not observable in the market and thus represented a level 3 fair value measurement. See Note 5. Other Charges (Gains), net. We impaired long-lived restaurant assets with a carrying value (including right of use lease assets) of $5.8 million and $27.3 million, recognizing an impairment expense of $2.2 million and $13.0 million during the twelve and forty weeks ended October 2, 2022, respectively, related to the net book value of these long-lived restaurant assets. We determined the fair value of these long-lived assets to be $3.6 million and $14.3 million in the twelve and forty weeks ended October 2, 2022, respectively. The impairment was recorded as a result of quantitative impairment analyses. 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. As of October 2, 2022, the fair value of the credit facility was approximately $194.8 million and the principal amount carrying value was $199.0 million. The credit facility term loan is reported net of $8.6 million in unamortized discount and debt issuance costs in the Condensed Consolidated Balance Sheet as of October 2, 2022. The carrying value approximated the fair value of the credit facility as of December 26, 2021, 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	9 Months Ended
	Oct. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Because litigation is inherently unpredictable, assessing contingencies related to litigation is a complex process involving highly subjective judgment about potential outcomes of future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. Accordingly, we review the adequacy of accruals and disclosures 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 condensed consolidated financial statements. However, the ultimate resolution of litigated claims may differ from our current estimates. 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 from Guests or Team Members alleging illness, injury, food quality, health, or operational concerns. To date, none of these claims, certain of which are covered by insurance policies, have had a material effect on the Company. While it is not possible to predict the outcome of these suits, legal proceedings, and claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the financial statements and that the ultimate resolution of these matters will not have a material adverse effect on our financial position and results of operations. However, a significant increase in the number of these claims, or one or more successful claims resulting in greater liabilities than we currently anticipate, could materially and adversely affect our business, financial condition, results of operations, and cash flows. As of October 2, 2022, we had a balance of $4.5 million for loss contingencies included within Accrued liabilities and other on our Condensed Consolidated Balance Sheet. We ultimately may be subject to greater or less than the accrued amount. As of October 2, 2022, we had non-cancellable purchase commitments to certain vendors who provide food and beverages and other supplies to our restaurants, for an aggregate of $128.4 million. We expect to fulfill our commitments under these agreements in the normal course of business, and as such, no liability has been recorded.

Basis of Presentation and Rec_2

Basis of Presentation and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Oct. 02, 2022
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 26, 2021 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 26, 2021 filed with the SEC on March 10, 2022. Our current, prior, and upcoming 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: First Quarter 2022 April 17, 2022 16 First Quarter 2021 April 18, 2021 16 Second Quarter 2022 July 10, 2022 12 Second Quarter 2021 July 11, 2021 12 Third Quarter 2022 October 2, 2022 12 Third Quarter 2021 October 3, 2021 12 Current and Prior Fiscal Years: Fiscal Year 2022 December 25, 2022 52 Fiscal Year 2021 December 26, 2021 52 Upcoming fiscal year: Fiscal Year 2023 December 31, 2023 53
Reclassifications	Reclassifications Certain amounts presented have been reclassified within the October 3, 2021 Condensed Consolidated Statement of Cash Flows to conform with the current period presentation, including prior year reclassifications from Lease assets, net of liabilities to Other operating assets and liabilities. The reclassifications had no effect on the Company’s cash flows from operations.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Oct. 02, 2022
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 Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Restaurant revenue $ 282,449 $ 270,202 $ 951,718 $ 861,036 Franchise revenue 4,249 4,303 14,891 13,123 Gift card breakage (1) 190 438 8,290 3,231 Other revenue — 501 1,629 1,304 Total revenues $ 286,888 $ 275,444 $ 976,528 $ 878,694 (1) During the forty weeks ended October 2, 2022, the Company re-evaluated the estimated redemption pattern related to gift cards and aligned the recognition of gift card breakage revenue to the updated estimated redemption pattern. See Note 1. Basis of Presentation and Recent Accounting Pronouncements.
Schedule of unearned revenue and revenue recognized that were included in liability balances at the beginning of the fiscal year	Components of Unearned revenue in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands): October 2, 2022 December 26, 2021 Unearned gift card revenue $ 23,971 $ 41,128 Deferred loyalty revenue $ 13,568 $ 13,086 Revenue recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the redemption and breakage of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands): Forty Weeks Ended October 2, 2022 October 3, 2021 Gift card revenue $ 19,788 $ 14,448

Leases (Tables)

Leases (Tables)	9 Months Ended
	Oct. 02, 2022
Leases [Abstract]
Schedule of Leased Assets and Liabilities	The Company's finance and operating lease assets and liabilities as of October 2, 2022 and December 26, 2021 were as follows (in thousands): October 2, 2022 Finance (1) Operating (2) Lease assets, net (3) $ 7,233 $ 375,747 Current portion of lease obligations 1,015 47,726 Long-term portion of lease obligations 8,630 401,274 Total $ 9,645 $ 449,000 December 26, 2021 Finance (1) Operating (2) Lease assets, net (3) $ 9,664 $ 400,825 Current portion of lease obligations 1,194 48,842 Long-term portion of lease obligations 10,765 435,136 Total $ 11,959 $ 483,978 (1) Finance lease assets and obligations are included in Other assets, net, Accrued liabilities and other current liabilities, and Other non-current liabilities on our October 2, 2022 and December 26, 2021 Condensed Consolidated Balance Sheets. (2) Operating lease assets and obligations are included in Operating lease assets, net, Current portion of operating lease liabilities, and Long-term portion of operating lease liabilities on our October 2, 2022 and December 26, 2021 Condensed Consolidated Balance Sheets. (3) The Lease assets, net caption includes the right of use assets associated with the Company's Finance and Operating leases, net of the associated amortization of these right of use assets.
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 and Comprehensive Loss as follows (in thousands): Twelve Weeks Ended Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Operating lease cost $ 15,793 $ 16,061 $ 53,904 $ 53,765 Finance lease cost: Amortization of right of use assets 261 197 841 657 Interest on lease liabilities 111 131 408 407 Total finance lease cost $ 372 $ 328 $ 1,249 $ 1,064 Variable lease cost 4,130 4,496 15,136 15,271 Total $ 20,295 $ 20,885 $ 70,289 $ 70,100
Schedule of operating lease maturities	Maturities of our lease liabilities as of October 2, 2022 were as follows (in thousands): Finance Leases Operating Leases Remainder of 2022 $ 260 $ 13,829 2023 1,386 76,978 2024 1,479 76,047 2025 1,189 71,921 2026 1,245 66,078 Thereafter 6,454 323,647 Total future lease payments $ 12,013 $ 628,500 Less imputed interest 2,368 179,500 Total lease liability $ 9,645 $ 449,000
Schedule of finance lease maturities	Maturities of our lease liabilities as of October 2, 2022 were as follows (in thousands): Finance Leases Operating Leases Remainder of 2022 $ 260 $ 13,829 2023 1,386 76,978 2024 1,479 76,047 2025 1,189 71,921 2026 1,245 66,078 Thereafter 6,454 323,647 Total future lease payments $ 12,013 $ 628,500 Less imputed interest 2,368 179,500 Total lease liability $ 9,645 $ 449,000
Supplemental cash flow related to leases	Supplemental cash flow and other information related to leases is as follows (in thousands, except other information): Forty Weeks Ended October 2, 2022 October 3, 2021 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 65,943 $ 68,036 Finance leases 408 406 Cash flows from financing activities Cash paid related to lease liabilities Finance leases 1,048 1,447 Cash paid for amounts included in the measurement of lease liabilities: $ 67,399 $ 69,889 Right of use assets obtained in exchange for operating lease obligations $ 11,604 $ 27,483 Right of use assets obtained in exchange for finance lease obligations $ 541 $ 988 Other information related to operating leases as follows: Weighted average remaining lease term (years) 9.21 9.86 Weighted average discount rate 7.24 % 7.01 % Other information related to finance leases as follows: Weighted average remaining lease term (years) 10.49 11.04 Weighted average discount rate 4.89 % 4.56 %

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Oct. 02, 2022
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 Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Basic weighted average shares outstanding 15,892 15,709 15,816 15,647 Dilutive effect of stock options and awards — — — — Diluted weighted average shares outstanding 15,892 15,709 15,816 15,647 Awards excluded due to anti-dilutive effect on diluted loss per share 869 545 1,010 390

Other Charges (Gains), net (Tab

Other Charges (Gains), net (Tables)	9 Months Ended
	Oct. 02, 2022
Other Income and Expenses [Abstract]
Summary of Other Charges (Gains)	Other charges (gains), net consisted of the following (in thousands): Twelve Weeks Ended Forty Weeks Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Asset impairment $ 2,187 $ — $ 13,048 $ 1,357 Gain on sale of restaurant property (9,204) — (9,204) — Executive transition 1,825 — 1,954 — Other financing costs 1,022 — 1,392 — COVID-19 related charges 123 299 423 1,112 Restaurant closure costs (gains) (1,570) 1,102 309 5,301 Closed corporate office, net of sublease income 267 — 267 — Litigation contingencies 133 160 47 1,330 Board and stockholder matter costs — — — 128 Other charges (gains), net $ (5,217) $ 1,561 $ 8,236 $ 9,228

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 02, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Borrowings as of October 2, 2022 and December 26, 2021 are summarized below (in thousands): October 2, 2022 Weighted December 26, 2021 Weighted Revolving line of credit $ — $ 57,000 Term loan 199,000 8.70 % 119,080 7.10 % Notes payable, non-current 875 875 Total borrowings 199,875 176,955 Less: unamortized debt issuance costs and discounts (1) 8,555 — Less: current portion of long-term debt 2,000 9,692 Long-term debt $ 189,320 $ 167,263 Revolving line of credit unamortized deferred financing charges (1) : $ 1,042 $ 2,015

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 02, 2022
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 October 2, 2022 and December 26, 2021 (in thousands): October 2, 2022 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 4,020 $ 4,020 $ — $ — Total assets measured at fair value $ 4,020 $ 4,020 $ — $ — December 26, 2021 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,276 $ 6,276 $ — $ — Total assets measured at fair value $ 6,276 $ 6,276 $ — $ —

Basis of Presentation and Rec_3

Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended				4 Months Ended		9 Months Ended
	Oct. 02, 2022 USD ($) state restaurant $ / shares	Jul. 10, 2022 USD ($)	Oct. 03, 2021 USD ($) $ / shares	Jul. 11, 2021 USD ($)	Apr. 17, 2022 USD ($)	Apr. 18, 2021 USD ($)	Oct. 02, 2022 USD ($) state province segment restaurant $ / shares	Oct. 03, 2021 USD ($) $ / shares
Number of operating segments | segment							1
Number of reportable segments | segment							1
Gift card breakage							$ 8,289	$ 3,231
Net loss	$ (12,567)	$ (17,932)	$ (14,980)	$ (4,996)	$ (3,105)	$ (8,713)	$ (33,605)	$ (28,689)
Basic (in dollars per share) | $ / shares	$ (0.79)		$ (0.95)				$ (2.12)	$ (1.83)
Gift card breakage
Gift card breakage							$ 5,900
Commission costs							600
Net loss							$ 5,200
Basic (in dollars per share) | $ / shares							$ (0.33)
Entity Operated Units
Number of restaurants | restaurant	424						424
Number of states in which restaurants are located | state	38						38
Franchised Units
Number of restaurants | restaurant	101						101
Number of states in which restaurants are located | state	16						16
Number of Canadian provinces in which restaurants are located | province							1

Revenue - Schedule of Revenue D

Revenue - Schedule of Revenue Disaggregation by Product Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Disaggregation of Revenue [Line Items]
Total revenues	$ 286,888	$ 275,444	$ 976,528	$ 878,694
Restaurant revenue
Disaggregation of Revenue [Line Items]
Total revenues	282,449	270,202	951,718	861,036
Franchise revenue
Disaggregation of Revenue [Line Items]
Total revenues	4,249	4,303	14,891	13,123
Gift card breakage
Disaggregation of Revenue [Line Items]
Total revenues	190	438	8,290	3,231
Other revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 0	$ 501	$ 1,629	$ 1,304

Revenue - Contract Liabilities

Revenue - Contract Liabilities (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 26, 2021
Disaggregation of Revenue [Line Items]
Unearned revenue	$ 37,539	$ 54,214
Gift card revenue
Disaggregation of Revenue [Line Items]
Unearned revenue	23,971	41,128
Deferred loyalty revenue
Disaggregation of Revenue [Line Items]
Unearned revenue	$ 13,568	$ 13,086

Revenue - Schedule of Revenue R

Revenue - Schedule of Revenue Recognized Included in Liability Balances at Beginning of Fiscal Year (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Gift card revenue
Disaggregation of Revenue [Line Items]
Gift card revenue	$ 19,788	$ 14,448

Leases - Additional Balance She

Leases - Additional Balance Sheet information (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 26, 2021
Finance
Operating lease assets, net	$ 7,233	$ 9,664
Finance Lease Liabilities
Current portion of operating lease obligations	1,015	1,194
Long-term portion of operating lease obligations	8,630	10,765
Total	9,645	11,959
Operating
Operating lease assets, net	375,747	400,825
Operating Lease Liabilities
Current portion of operating lease obligations	47,726	48,842
Long-term portion of operating lease obligations	401,274	435,136
Total	$ 449,000	$ 483,978

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Leases [Abstract]
Operating lease cost	$ 15,793	$ 16,061	$ 53,904	$ 53,765
Finance lease cost:
Amortization of right of use assets	261	197	841	657
Interest on lease liabilities	111	131	408	407
Total finance lease cost	372	328	1,249	1,064
Variable lease cost	4,130	4,496	15,136	15,271
Total	$ 20,295	$ 20,885	$ 70,289	$ 70,100

Leases - Schedules of Lease Mat

Leases - Schedules of Lease Maturities (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 26, 2021
Finance Leases
Remainder of 2022	$ 260
2023	1,386
2024	1,479
2025	1,189
2026	1,245
Thereafter	6,454
Total future lease payments	12,013
Less imputed interest	2,368
Total lease liability	9,645	$ 11,959
Operating Leases
Remainder of 2022	13,829
2023	76,978
2024	76,047
2025	71,921
2026	66,078
Thereafter	323,647
Total future lease payments	628,500
Less imputed interest	179,500
Total lease liability	$ 449,000	$ 483,978

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021
Cash flows from operating activities
Operating leases	$ 65,943	$ 68,036
Finance leases	408	406
Cash flows from financing activities
Finance leases	1,048	1,447
Cash paid for amounts included in the measurement of lease liabilities:	67,399	69,889
Right of use assets obtained in exchange for operating lease obligations	11,604	27,483
Right of use assets obtained in exchange for finance lease obligations	$ 541	$ 988
Other information related to operating leases as follows:
Weighted average remaining lease term (years)	9 years 2 months 15 days	9 years 10 months 9 days
Weighted average discount rate	7.24%	7.01%
Other information related to finance leases as follows:
Weighted average remaining lease term (years)	10 years 5 months 26 days	11 years 14 days
Weighted average discount rate	4.89%	4.56%
Proceeds related to real estate sale	$ 3,856	$ 0

Loss Per Share - Summary of Los

Loss Per Share - Summary of Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Loss Per Share Reconciliation [Abstract]
Basic weighted average shares outstanding (in shares)	15,892	15,709	15,816	15,647
Dilutive effect of stock options and awards (in shares)	0	0	0	0
Diluted weighted average shares outstanding (in shares)	15,892	15,709	15,816	15,647
Awards excluded due to anti-dilutive effect on diluted earnings per share (in shares)	869	545	1,010	390

Other Charges (Gains), net - Su

Other Charges (Gains), net - Summary of Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021
Other Income and Expenses [Abstract]
Asset impairment	$ 2,187	$ 0	$ 13,048	$ 1,357
(Gain) loss on sale of property, plant, and equipment	(9,204)	0	(9,204)	0
Executive transition	1,825	0	1,954	0
Other financing costs	1,022	0	1,392	0
COVID-19 related charges	123	299	423	1,112
Restaurant closure costs (gains)	(1,570)	1,102	309	5,301
Closed corporate office, net of sublease income	267	0	267	0
Litigation contingencies	133	160	47	1,330
Board and stockholder matter costs	0	0	0	128
Other charges (gains), net	$ (5,217)	$ 1,561	$ 8,236	$ 9,228

Other Charges (Gains), net - Ad

Other Charges (Gains), net - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022 USD ($) restaurant	Oct. 03, 2021 USD ($)	Oct. 02, 2022 USD ($) restaurant	Oct. 03, 2021 USD ($) restaurant
Other Income and Expenses [Abstract]
Number of restaurants impaired | restaurant	1		10	1
Gain on sale of restaurant property	$ (9,204)	$ 0	$ (9,204)	$ 0
Proceeds related to real estate sale			3,856	$ 0
Final proceeds received			$ (8,500)

Borrowings - Schedule of Long-T

Borrowings - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 26, 2021
Debt Disclosure [Abstract]
Revolving line of credit	$ 0	$ 57,000
Term loan	199,000	119,080
Notes payable, non-current	875	875
Total borrowings	199,875	176,955
Less: unamortized debt issuance costs and discounts	8,555	0
Less: current portion of long-term debt	2,000	9,692
Long-term debt	189,320	167,263
Revolving line of credit unamortized deferred financing charges	$ 1,042	$ 2,015
Weighted Average Interest Rate	8.70%	7.10%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($)	4 Months Ended
	Apr. 17, 2022	Oct. 02, 2022	Mar. 04, 2022
Debt Disclosure [Abstract]
Write off of deferred debt issuance cost	$ 1,700,000
Deferred financing charges			$ 4,800,000
Original issuance discount			6,100,000
Line of Credit Facility, Accordion Feature, Increase to Maximum Borrowing Capacity			$ 40,000,000
Fed Funds Effective Rate Overnight Index Swap Rate
Debt Disclosure [Abstract]
Principal repayment rate			0.50%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Disclosure [Abstract]
Principal repayment rate			1%
Credit Agreement Dated March 4 2022
Debt Disclosure [Abstract]
Debt term			5 years
Maximum borrowing capacity			$ 225,000,000
Quarterly principal percentage			1%
Variable interest rate		10.31%
Revolving credit facility | Credit Agreement Dated March 4 2022
Debt Disclosure [Abstract]
Maximum borrowing capacity			$ 25,000,000
Term Loan | Credit Agreement Dated March 4 2022
Debt Disclosure [Abstract]
Maximum borrowing capacity			$ 200,000,000

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Oct. 02, 2022	Dec. 26, 2021
Assets:
Investments in rabbi trust	$ 4,020	$ 6,276
Total assets measured at fair value	4,020	6,276
Level 1
Assets:
Investments in rabbi trust	4,020	6,276
Total assets measured at fair value	4,020	6,276
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) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2022	Oct. 03, 2021	Oct. 02, 2022	Oct. 03, 2021	Dec. 26, 2021
Fair Value Disclosures [Abstract]
Restaurant assets	$ 5,800		$ 27,300
Asset impairment charges	2,187	$ 0	13,048	$ 1,357
Impaired restaurant assets	3,600		14,300
Fair value of credit facility	194,800		194,800
Carrying value	199,000		199,000
Less: unamortized debt issuance costs and discounts	$ 8,555		$ 8,555		$ 0

Commitment and Contingencies (D

Commitment and Contingencies (Details) $ in Millions	Oct. 02, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimated litigation liability	$ (4.5)
Purchase obligation	$ 128.4