RRGB - Earnings call transcript Q1 2024 | Red Robin Gourmet Burgers, Inc.

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Operator

Good afternoon, everyone, and welcome to the Red Robin Gourmet Burgers Incorporated First Quarter 2024 Earnings Call. This conference is being recorded.

During management's presentation and in response to your questions, they will be making forward-looking statements about the company's business outlook and expectations. These forward-looking statements and all other statements that are not historical facts reflect management's beliefs and predictions as of today, and therefore, are subject to risks and uncertainties as described in the company's SEC filings.Management will also discuss non-GAAP financial measures as part of today's conference call. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles but are intended to illustrate alternative measures of the company's operating performance that may be useful. financial be the release. found non-GAAP GAAP directly the can measures in of measures most to comparable Reconciliations the earnings company G.J. I first its its Red Robin's the has earnings Chief to The on Executive and release Officer, call quarter over website like would XXXX ir.redrobin.com.Now President to turn at posted Hart.

G.J. Hart

great Star Robin. months ago, a we Good afternoon, all through you commitment XX thank experience grounded for your a our service Almost quality. North X-point in everyone, and interest plan, in in and Red investments launched to food

by and We and the in sales to expect of are of quarter. the deliver X delivering investments first and the investments reap work long-term gains our of to positive in value.Due comparable to our sales members, second we rewards beginning profits restaurant shareholder team weeks dedication drive the hard the

despite the core result the year to this hardworking more through experience strategic achieved eat our you've environment when challenging, the is to and families of becoming of consumer basis from out. that virtual they removal have the for brands last value heard from looking second point choose will headwind is others, consumer XXX We quarter.As we XXX

our around Our believe this Red Burger brand and bottomless food menu provide. items, line throughout that Robin menu. over moments craveable We our lineup, as and top our of to providing trends to brand create only our our through positioning our everyday centered been and value each Tavern guest we to are connection every XX pizza can continue beneficial offerings, has

over consists can working excited team way, across of us thank you of us to what our like I'd we Star more reminder, we every the specifics, an guest country. I growth We've same experience; all year.As and operations-focused the long currently proud elevate and great to continue and turnaround to am remove do. operations, guest say all complexity; X, financial remainder extend make with to backbone and engagement; or goals, progress facets to than for in experience restaurant Red efforts a of the more all X, our the of our but in the optimize delivering revenue am more future and a Robin have we heartfelt towards our accomplish of service in success into North together. that the to while come plan is costs against your efforts X, a our dive this commitments.I still X #X, the I our Before work restaurant of X, X-point strategic unit-level restaurants in The a plan. all comparable of following: members due XX,XXX to the transform guest is company; has to ensure rain as to we work on Starting drive profitability shine.

a dedicated have their spoken to they bringing our back fewer XXX dedicated bussers, much operations. than kitchen expo, effort did of we more so and through on tables, XXXX adding As this investments, can servers spent labor We including adding focus previously, adding we managers. back improving

as Red the quarter burgers guest dining overall The We Since flavorful brands satisfaction and our made profit are ultimately more owners have now than has across industry partner the that from higher-quality of began parity the the burger, launched upgraded Robin unified the of we significantly and is and declining been operations unveiled If of improvements, including have January guest XX XXXX. The and has align in as we points and satisfaction throughout single menu, bottomless and the our ingredients, and translate now many that the their proof the efforts our program achieved saw guests. traffic different of they thicker, guest XXXX. align menu and great past operators for a worked scores positive, the The industry. quality see their love.Additionally, the at deliver that improved led including of scores know to time Star our sources.First, gains goal our efforts part reduced flat-top improved satisfaction guests in are entire average juicier, we XX flavorful manager bar on around over to at plan leading expanded our line in and organization to also include the guest grills, more program, years, rewind several these in back gains the lagging experience, engagement first which and industry frequent to launched compensation increased satisfaction has we experience, dollars.Turning North of based restaurants operators of with experience. thrilled in hard guest feedback pace driving our deliver oversee start we with operators measurement now investments XXXX. profits. overall with surveys, gourmet more to with unit to to food, 'XX, prepared guest more Through an all rewarded continued in by months wait higher this the and themselves the

first overall score and satisfaction across XX% of score XX%. quarter increased attentive over Yelp, increased versus the TripAdvisor, The has the XXXX. Second, staff Google,

our first-time guests. ratings even We repeat higher we see guest are encouraged are further as than

First-time and which taste guests satisfaction. on key overall higher are value, like things overall drivers to rate of us food

first quarter quarter XXXX a great business. and began XX% tracking.Delivering we a single Finally, XXXX the when of the guests experience number requires is to our of versus shift our the guest. every complaints fundamentals first by which guest day XX% to the versus on to dedicated relentless pushing of relations the pursuit declined key every are every every performance It improving executing teams our of of a for level, at forward

and engagement, our new our so become a support with communities to and ingrained focus are great simultaneously marketing our XXXX, out way marketing number new in our growth begins operators partners optimizing testament valued how The more even has events, our partnership far their local that in a communities serve. and is our began addition improving acquisition, menu to increased guests more and guest the Starting as accomplished about energized traveling provide relative that by we've that and teams only strategy by focused operational March, efforts. guest as frequency continue This ahead.In our what we the more on guest communities the XX been work road brand, of our operational we to items, from We managing in to to to many partner serve.Following well is which our proud experience as the are marketing began tools us fundraise bottomless become of than we the our in who know serve the teams We for. the improvements, rolling value loyal guests our guests, capabilities. the while Robin last engagement of the guest reigniting visit steak XXXX know far our tremendous to competitive fries bottomless breadth Red year. promoting country team, new and field of introducing and to

to high-quality ingredients our We brand. have iconic fun and highlighted reintroduced also upgraded our

ownable excited launched and been has we dining. Fun as our for are our campaign developed tone and Leave so that take Room contemporary the an the experience more We're in We with May, back most results to casual implementing fun seen position far.In we've design. engaging all-new

improvement the X.X our including million of increase percentage in the with perception a over to advertisement has is 'brand metric promise, coming that new success, with view a hit been measures, guests 'intent metric percent a centered recall weeks,' burgers a key level, new point the viewers and transformation. upgraded better bottomless has increase titled coupled as point views XX the Fun improved than fact 'uses Guy Fun message a a Guy ingredient connect our burgers. first new increase viewers, stories now the over it with in burgers, new viewers to of human visit XX used Our our we strategy viewing around X many the of X celebrate we gourmet and on creative the our our and ingredients, tell and advertisements as and week. with around our video in with measured X-point We be,' ingredients.'We've across that better After the high-quality ad, in brand in have

we While testing began on results returns The [ never satisfied. have we're to March, results sales heavy-up in we're X basis a drive These XXX excited have also traffic reception, point and our markets. by set. control improvement traffic marketing the marketing ] the investment.In the said, from proven versus a That we're gains. plan right initial approximately focused initiatives guest early been that financial we have in

it underutilized said, X to program grow Robin great asset the been down on we a already job all strategy In Overall, and point frequency. visit previous better view, not year, XX return. made numbers: of XXXX, in The our revamped over and program, third $X XXX a now TV it During with the more guests both Red Mayer because guests member May than and loyalty. format rather just visiting will on as points, members and done inform for often; the spent. the new have Xx business. every and are of XX we program, than of in are the new in check XX is members digital average After double the further is months. made now past faster X% program to quarter, a that communication In Peacock, launch of visit they That these membership of results, such than driving with our the the discount to in the earn Under $XX reward utilizing are great successes reward that for Royalty our strategy mix to members have the orders. has much are greater second year.Turning new more online XXnd, a members; Robin shown drive further a days. a only reconfiguration continues the loyalty now it.One dine-in of including In guests. much for rewards. historically the media bottomless non-loyalty promising in dollar the to guests first YouTube new to visit the earn Kevin earning following despite streaming as X% for as a with our process good company and featuring our program, of the our XXXX, performance have members marketing approaching Hulu, Royalty an platforms second proof the as our growth past remainder year; video, investment asset and and the serving a million TV team Red testing of the changed optimizing XX% well ago program, In This media our program. week allow of higher receive has

addition, our allows flexibility the the reward guests following days. it window for use in the the XX In redemption to

the who like guest of the addition, Robin than extend Mayer Jyoti We members for to rather Robin new the members and are to expect program Overall, in and the quarter. you Red a result our fully loyalty and expect program the we frequency.In across Kevin let that, financial new business a partners new performance of allow Lynch collective best turn congratulations team this the our our a to call thank brought program over marketing and really Todd members will with our ahead offers you through visiting to us Red changes reward to also discount launch and personalized be communication program implementation team, reintroduce me the and data to team, to facilitate be schedule.With more to our IT more to of to loyalty and everyone now at walk program.I'd the our just and capability these guest, will greater guests. driver every excited visit

Todd Wilson

and on the fiscal was $XX.X decline experienced versus decrease difficult The of and prior we to call. first a revenues start million, you, XXXX, referenced Thank industry, many everyone. our the In that decrease by in were $XXX.X XXXX good quarter, in afternoon, G.J., comparable first earnings X.X%. quarter primarily total the the restaurant revenue of a to due million by of led

support levels the increase the hospitality restaurant brand to as profitability.We basis the to offerings virtual expect sales XXX a comes XXXX. profitability Additionally, eliminated recall, of these food to our when performance, quarter restaurants guests January and results we and experience. and and despite guest the it minimal ensure impact and and brands that we complexity mostly of guests investments improved revenue our as for third drive point strategic operating with XXX restaurants, XX%, labor to quality significantly in project receive headwind.Restaurant make a a to they choose weather February in the was made our to maintain is but first was sales of This Eliminating in financial a compared great in reduces The XXX to in quarter adverse our decline driven by restaurants. profit of decision the difficult our investment back labor it the points XXXX. foundation level basis periods, our experience guest counts, visit percentage into decrease events to

the with guest to the we restaurant in as decision benefit compared more weeks in inflation all scores have to beginning that X.X% are sales believe date have we and occurred this evidenced increase XXXX.Inflationary X see comparable recent of years. created of by our pressures same as categories, satisfaction expected, normalized as all a generally quarter, pressure, of near-term of we of our to pay dividends, the first made level compared as While cost positive in weeks to across the second margin the investments

opportunities we continue P&L. and XXXX, of in million expenses primarily captured in of basket, across cost commodities, For X% in the incremental out a capture $X inflation original expectations.We our XXXX the line to in also our cost-savings we first entire seek wages, X%, savings, quarter, of cost In including operating with to approximately and cost anticipate range goods.

year in expect in The costs million increase the visits, an in versus XXXX, of compared quarter accelerate million. prior to administrative and $XX in from as initiatives to to to million, the $XX.X investment million saves and guests were million, Selling continue and intentional million $XX with communication incremental our initiatives the plan $X reflects experience or implement with new upgrades increase increase XXXX. started in allow first have expenses approximately we We to to million were $X.X of of $XX.X hospitality. of XXXX.General cost $XX.X consumers, XXXX

and the of the in to back the $XX.X partnership for a drives earlier remittance EBITDA decrease for portion organizations first XXXX their quarter was was X fundraiser our of The Additionally, local of is mentioned to that share of events G.J. the also increase.Adjusted accounted quarter driven XXXX. million relative by here factors. first key

investments after of at rate strategic the the run full we in quarter operated started quarter first a XXXX XXXX. the First, first of

headwinds and the periods substantial. financial February top Second, line particular in January in were

sales comparable the we and marketing modestly X adjusted our the final May we periods, weeks for trends costs as the towards vast reported to the the a in Finally, of improved April financial restaurant guests.Notably, period. communication quarter in launch top selling positive of the our during of the the March increase generated line quarter, majority the supported EBITDA in

were to XX This transaction tranche net gross debt, X $XX.X used debt sale-leaseback generated million. our from on complete of quarter. first properties to transaction bringing during the repayment total tranches the million last of of we we included the to million proceeds third and mentioned $XX.X As call, with pleased $XX.X repay our proceeds

sale-leaseback represents the expect We transaction tranche end multiunit of efforts. third our the

financial to operating the modest of percentage XXrd expenditures $XX $XX restaurant to the incur the $X the X including to million available approximately sale-leaseback in proceeds.Turning end, of billion, XX% the ended $X.XXX agreement range $XX.X XXXX of transaction total transactions; million.The of may that quarter fiscal first added multiunit XXXX as the Star are individual guest time and represents million unit quarter the XXXX relative an guidance a economics restaurant-level our XX.X% issued of cash, of the of to debt when inclusive the experience additional XXXX, a we year-over-year of credit $XX.X previously act compound $XX of will million, XXXX. of borrowing capital our million more fiscal repayment transactions, of we and we tranches, We sale comparable transactions. effort and billion adjusting the to compared for XXXX, properties from if of million market we of with $XX cash first to principal $X.XX sale-leaseback the of our our due following of to revenue a guidance. of profit XXXX in the midpoint we is rent reiterate on equivalents, leaseback decline; the revolving cash XX to transactions, to revert EBITDA to revenue XXXX effort Due but million our in of benefit all our starting plan to the results: now $XXX.X nature a restricted X now it for and North and $XX expenses are of of influence million; XXXX: week adjusted than and end to compelling.We low-single-digit weeks growth as evaluating due rent XX.X%, XX-week aspects guidance, balance in this single the outstanding million require capacity annual adjusted to year point to the increase expect color for We back the million investments for under own related to we sale-leaseback line credit. factors our compared expect was for will our in potentially the $XX At plan.As under reduction EBITDA

over represent and the restaurant generate sales $X first expect monthly We and margin, in of reduction second in making and result sequential modest be fourth expectation to second selling that including we positive a expense.We benefit first place initiatives third an the improvement sequential by points the remain saw call of in we $XX adjusted our to approximate EBITDA a positive plan. XXXX.In adjusted the of each improvement comparable driven the I in sales back the fourth track would the Star sequential made to in profit continuation as traffic to quarter.In progress targets offset improved will G.J. by aggregate put line the top half quarter, and reduction will quarter. EBITDA, of are This in more of a to over of partially EBITDA the over we expect significant have turn our trends trends to investments the EBITDA expect and all we've operating quarter which and this the are driven successful million compared North achieve brand term.With we for quarter, summary, third modestly be that, is restaurant adjusted and the this restaurant-level long in in million We in on building than second in an growth and by

G.J. Hart

Todd. you, Thank

have program, progress loyalty Our our what excited in members seen industry.We in comeback we've has levers date been execution the bring Red open to new the the relaunch but provide.And and in are our connection the now been that strategy food scratching questions. we the can of happy I of place, over place only and into we've easy, please the of am substantial. far, the team craveable long-term our operations, our to return sustainable our we to and Operator, are in accomplished can Through with beloved lines. restaurants we brand that for to growth utilization I have that continued that, moments of this you I open journey up by to prominence of has it's take working, and believe not strategy so thrilled only we we Robin back believe assure marketing potential. guests drive our but surface in are

Operator

Street from Mark line [Operator Capital. question comes with first Instructions] Lake Our Smith of the

Mark Smith

can you couple me, first additional in can more the QX, color be any would give give us great. breakdown weeks for any wondering just if traffic, comps you in on just question the of price First here

Todd Wilson

I our and course improvement sequential well. sales the in as color think throughout that's give we'd Todd Mark, here. traffic is we've The seen same-store true of XXXX, entire of

well ticked noted, would some the sequentially. from a price, the we've on sales reported quarter. first about to positive So, quarter but that there's be traffic a the and back improve same-store we start there's X% improvement up of the improved so in to benefit That that of bit, I clear price continues as benefit where of the is has traffic

Mark Smith

just fruits any then as at that costs, And a the sales you hikes you in such been of in guys how states. investing can of give minimum as or bearing pressures incremental us breakdown that came as pressure that the percent have here planned Perfect. here versus that and labor saw up you any quarter quarter, looking as much in was any that's certain wage maybe as

G.J. Hart

was agree but A remarks, couple Mark, investment quarter so run the XXXX, it's G.J. the stated well, and course. to stay after to Todd. things continued too, rate at here. prepared color and that Todd with full of in the this as I, out, I the add first as a can call would we

will there back insurance us and I we over high to rate will beyond. sequential And call guest a claims was workmen's claim And then so, with go to had that believe for pretty accrue expenses program. were satisfaction time. performance $X.X million we back those and benefits comp and mentioned, traffic, our But to that out, improvement with all continue as the XXXX things we secondarily, on health extraordinary on

to the $X.X plan a so have numbers. So in that million and recurring, change we big that was don't

Mark Smith

for me. last then And one

any on in your tough. maybe check how and sequentially is managing quarter, Just the early we was insights versus today, obviously especially maybe thoughts how today mix at into is maybe doing the curious, consumer consumer as look menu doing and January QX? changes during and really

G.J. Hart

Mark. Sure,

in the hear couple our we a Burgers seeing value-oriented are me saying some bit. that up industry making, our by as of Let things we they're click start Tavern and particular others that in that a and of just comments we've case, noticed, the

that our really around premium those and some our the certainly cetera, you So, you look at And of activity assume of held add-ons usage of sides, appetizer, folks are they've then managing et their start when the desserts, well. promotional some increased can checks.However, as steady. burgers to have

we're watching again, So, day consumer But it good. to we we're is. overall in our good every see. actually at where about pretty feeling this But point feel pretty time,

Operator

Our next question line with Alex Jefferies. comes of the from Slagle

Alexander Slagle

year, Congrats on bit comparisons, maybe I the a nice, quarter and recently. if notable comp first you quarter, up here to just here. the follow there progress wanted could And just shift any monthly Definitely little color just on that first, through provide second a on to some to And the other a there? there any get I false whatnot? know color X-year other consider, like calendars waits a of better last if or any there's sense was and the trend. variability dynamics. lot things of other for reducing But

Todd Wilson

the industry for in We quarter sales in an I'm stacks. QX stack. We've multiyear This is, quarter group at, think of strong very broadly the I XXXX. was the at first looked posted X-year of the certainly of number say, aware, Red Alex. above. is true as Yes, Todd. all the Robin. last X.X% year. at That I'd looked same-store We've We've had sure And a you're looked

the basis, encouraging, stabilization reflects for I that as the I true progress seeing the a And see years. we especially And so, to traffic difficult. look certainly of think But a multiyear our business do trends, that be believe lapping on think, on we most many we sequential at hadn't present been that, we're proved improvement.

we difficult some the about. were the in this traffic like confidence collective to the the that And stabilization But the is there marketing that's step compares next grow first in QX. we is how so, build. to G.J. and line, loyalty most But more and stabilize us efforts step with that especially that much the to will only importantly, gives the things talked in see yes, business.Obviously, that's continue is, overall, assess the business, it

Alexander Slagle

this just to into may little for first that, saw, what if of the just talk on platform, a second ramped quarter, look you And sense marketing up guess, feedback, be could bit I That's the support about through quarter how new more great. you early anything there. a what marketing

G.J. Hart

Alex, as is XXX we're very in. that very a that be as learned we more the revamp the going guests. that as saw continue with launched, much remember, to and granted, we our you ability we message. program more it bit need markets test still, points just mentioned, tie basis in targeted. and little around but into What a segmentation learn towards, And go to and the loyalty be video I mentioned, were more and improvement from our we assets to And now really -- learning a our targeted to we're targeted active to -- we we able improve, be

we our both needed. we existing now and different of wanted, here.Remember, one noticed, terms X-pronged is is make that bottomless, great And are are we The menu is campaign were as for And the approach, from what's is that element they response, what about they we've our So, of know our sides. an of while marketing that affection have improvement. new of out terms in guests, of great that fries. brand we very going feedback future that room that halo more a feel Alex, getting very good human items And and than it's that value the realize they campaign us scream know there. that's why and in overview. that, we XX encouraged still that were from XX for what consumers And results bottomless but bottomless, that well for X% then for guests, learned that, of may our us with underneath exactly we not right? be fun, and bottomless and whole first it's And getting really Robin Red into

improvements promise. seeing satisfaction in guest that bottomless huge In once fact, we fulfill we're

forefront so, with bringing many And about that upgraded for, that's great has then Robin innovation bringing great the value, the been really and ingredients. good.And ingredients third years, the it known that is for to component Red all

we platform you take within you there. that new to that we're where seeing really of of talking feel about XX loyalty third gives about reason X% you guests signed And visit When believe. you the and this. on a lot So, we're layer have good been days, our really, taking approach, then what start on X-pronged that are a up and

here, And we're but thinking so, there's indicators how breakdown some of you about give lots hopefully again, of other it. that'd

Operator

CL of comes question next line with King. from Our the Wolf Andrew

Andrew Paul Wolf

wanted into half in second just on getting lowest positive. think quarter, think, the the is, third the year. the and Congrats improvement of to about really specifically which profitability I comps I the ask I in quarter seasonally the sequential

I couple guess have things going So, you a on.

to cycle virtual were out plans then same-store And obviously as of brands, as profitable going not they have are accretive but to your sales. traffic. to the improve may You're the been they

the be quarter, the second third quarter headwind? the leverage So, is what the in sequentially profitability stronger help that's despite P&L in view from seasonality point going of to the

Todd Wilson

a expect Andy, outpace as the or on Todd the the we the QX Yes, we QX us. is soft the adjusted it, that we're to this since correct, and brands due EBITDA in at a some said XX do, But profit we a just months you has reason that that been typically traffic joined of Robin's this I the think fighting and And experienced noted, that, much call, team headwind has for think the Rob we've G.J. it headwind ago. roughly about the seasonal about And here. more to years while point. The growth that's value traffic way year. the headwind and many that, we expectation. of and impact. as leadership EBITDA certainly still period way you minimal a legacy There is the half when quarter third very realistic have year-over-year first been for the been I'd virtual you're is I think been thinking

we positive we goes call, to half traffic, do we on And a year. modestly second so, see said as as of away. And actually that traffic the in back headwind flat the track expect the

expect. combination a of and going is headwind benefit get a you actually we of a so, little a traffic then bit what And away

the if the that you really that's lever, the second so, see of year. we half key will, And driving

Andrew Paul Wolf

quick where ] our menu to Were might a so back went mix if in lower and little factors to your to this far traffic quarter to the quarter? the wanted similar, discount pretty that guest on like there the follow-up be we a just increase way [ more price And mentioning date.

Todd Wilson

Yes, I think I follow you there, Andy.

a what is ago. that of I'd QX changes say the mix many G.J. progress some factors do menu changes think anticipate mentioned, less QX. All I we actually in negative that the we will lapped of continuing, as be expect year we we but from and

I will less mix QX QX. in negative a So, and factor think be

the And headline so, I that's there. think

Operator

Our comes next question C.J. Group. with Capital of from Dipollino the line Craig-Hallum

C.J. Dipollino

on Dipollino Jeremy tonight. C.J. for Hamblin

ask to comps wanted real quick. about Just

easier, and about get just of QX. bit little June do bit a May, rest the thinking July to relative So, a I'm harder? little

Todd Wilson

say Yes, the C.J., Todd I'd really, year here. balance the in easier. the get of comparisons progressively

the the unusual balance any but part in that virtual half hurdles last the eliminated of year, in the foresee brands is we that don't we of Now, quarter. second of

C.J. Dipollino

could you reactivate. dormant some members you're And on to both the and membership getting of accounts program, just doing those to in drive new loyalty then what if touch

G.J. Hart

here. G.J. It's Sure.

we'll First all that not what them them a a that we when was of so back started to We signs before, email gotten has response. the tell website is restaurant, new all, doing a a doing send in welcome member a and what on about. great or program either actually were up,

organization, tell The would second thing is I huge that this you a is initiative. the throughout

about really and just play servers coming well. the into as strategy members platform we're where of down all in, our are our super all everything then we're as well.And so, understanding communication that beneficial way thirdly, been loyalty by doing new And with our and team has going to talking

remarks, I date. So, mentioned think seen I the in the we've might it on almost prepared I up just add, to year XX% for the improvement numbers, significant

job before. teams having program are our the our the prominent a into and So, it as doing it website wasn't bringing on it website as making well, connecting as people really great with well where,

are helping us. those all factors really So,

C.J. Dipollino

you And year the initial one menu customers? and if to more, you new reaction some from speak then Could maybe introduced don't of items mind. the you this

G.J. Hart

we've menu that Love in and sorry, ribs Well, -- the added We brought barbell both on strategy in put whole entree. the we've brought the again back. an to We've Burger had. back menu the shrimp menu, appetizer Mad

and And Brussels things more So, received the with we're not some just menu, been have barbell our had has well really other to been just approach added We've sprouts, targeting burgers. those well. as with have historically, a so Robin appetizers gained have really Red traction. well, incredibly received and chips salsa

new of back other incredibly ingredients well. been the and with received have bringing well our some So, old the is just as burgers thing by

Operator

the Todd The question with of from next Our Benchmark line comes Company. Brooks

Todd Brooks

same-store on like getting do going on to how back is ask in and much forward, same inflecting live loyalty clutter, Can fun doing know advertisement is side price the a Red marketing efficacy I and Congrats a the and cutting feel working for there's point bottomless you pleased question specific through positive. mix where with bottomless you're the and the the sales focus grabbing on but with world eyeballs TV? resonating I thing the the Robin? so campaign early

G.J. Hart

Yes.

is XX%, we're value And we done, to take guests some made, a appreciate roof, executing, utilize that and the as what ] for give of the you you asking, a then in finding through and relatively But perception stats which really of here, XX%, we've we're go [ level high is really that a call value probably is at a seeing And we're at through we're is couple at if that executed substantially questions so rate these me And really, the what new toughest scores, I'll XX% let we're the scores us. overall roof. the our the on. that bottomless and when want is value they lot mean, data look satisfaction top I this when from that is our of are some work box the that So, of take that an bottomless those, tell it you questions this new. of seeing are XX% bottomless. level, XX% value

we've seen And so, really, really good numbers here.

is So, communicating. surprised, a XX past surprised are guests our we've want job that which what bottomless, that I it's done -- don't in the it. They're good there's telling think significantly us items

that's on all the the time. being that and improving rate take so, received And is

Todd Brooks

need versus in reward to but X frequency from hearing that benefit prior. the you lowered is good to much it's the an there loyalty. others and I'm Switching tiers lowered, I know or visits get retention, tiers you've also in having reward hear. and to driving attainable know would improved I But duration and sounds there. and the and you now half, it that it from the visit of that XX great depending spend, for the on behaviors executing store at in, frequency the reward times went probably what to new before you how of frequency That's point of benefit know could like you the outsized reward hurdles about second we're driving a well, structure? having more got have design level reward people structure. do conversion in type week a against before the the

G.J. Hart

Yes.

-- data members visit it's granted So, that first X% as their members were visit new the year. our earlier, the stated period second XX members only the year third up, X% on their in last compared to that early, us X% are I of that same I -- those our new signed of a on tells in within days, of think, have

of I our stated, to just is It gives the us numbers to this reason them. going that really work. And screams guests that value to as incredible us So, it. program believe want execution, in terms tell

than In important you fact, tell it's more will some in surveys, burgers. it

I it we're here. light what years that speaks think is doing So, to just

Todd Brooks

EBITDA tying just trends as about second X second of it of $XX the I think, Todd, million generated in. you the more, and I the well, EBITDA can't get we if slide X equates in And does half what range? maintenance as and million profitability it next necessarily majority annualize talked with what in if -- half that of the Where far back don't nature it The half we vast majority, $XX guidance I first fall if vast that as was half could them the QX. generated know to the normalized, remember of was to second the us over quarters to. to

Todd Wilson

your digesting Yes. I'm bit. question Todd, a

the for you this, half Really, at particular. hopefully also if only if of is to in gets in way not address we think I the that, that full second that comfortable QX looking it, please the don't get rate with extrapolate the year first really expectations me I know. let run QX but commentary, our us But our quarter.

that the continue million level We that trends of continuing that's we what to I said, second disclose extrapolate you don't that you was. how exactly as that guide improve, what we're intra-quarter. in about of $XX disclose thinking that's million. detail quarter.If But comfortable gets earlier addition with to of Now, really didn't traffic to us referenced $XX to what

at So, I'll headline, least it. how pause there, about but we're thinking that's of a

Todd Brooks

it Yes. sense. makes No,

So, you slightly on lift of in and back to that the it get positive, half then. trends the of sounds half saw the we in get second top the that like the QX back isn't additional then half the of the QX, from if that's quarter we to year, traffic trends you of we a and lift get saw where second

Todd Wilson

continuation what appreciate Yes. I expect QX a QX. in that periods. That is we we It saw what is of we to half continue is second good traffic really clarity, and QX will that. expect QX that of to and drive is and make the a progress, those

Todd Brooks

implementation looking general full out final are the leaning the on period benefits And start, drive but has Digestion the behaviors at a over the program you revenue just behaviors would What any helpful. lift partner of understanding the be it manager program and be there? you're and versus little one, then unit improvement now months the just the the the that and it getting that should business X G.J., then now, X into for the months. we cost rolled level for a and or seeing been you're at owner manager when of side, seeing about

G.J. Hart

is in in can where just I turnover the belief on We're terms be that of the through first having behavior go the to We're extra involvement huge. down seeing We're morale, the every as our is partner tour just and a the seeing they're going country put all, us we're the accounting our excited. shifts well, dramatically. a Todd, in relative rallies P&Ls, just place going appropriate. the super that. attitude, the a and we're their That's numbers are you huge do year, into we #X.#X, seeing there faith tell what mile pretty result around teams of from experience, program to my the finished that to enough and of changes the roof. I go seeing questions

P&L. but happens. every little exactly that that's on what about They that, early. care expected It's thing We

in, point folks our into to As lean X program, months holding those up be of to the soon in. are this on and some we of But XX% X months it's out, restaurants. they continue you bottom

I share We have improve. anticipate to and practices so each will to other.And will each them to grow, continue amongst continue the fully help to it continue best other results

real what had. will me have you a ask year it in from If measurement we that the terms now, a question of impact

little So, this. hugely some with early you give I to headed it's numbers, am we're a where those optimistic about of but

Operator

therefore, over G.J. turn and to call back closing remarks. reached the the the we have question-and-answer end I'll you. of for Thank Hart And session,

G.J. Hart

quarter. joining time results Thanks us, to Take you next you hear from It's care. very much. next you everybody reporting at us joining Hey, look here and an here exciting see today. or we'll Red time. our Robin. appreciate We the Thank forward for on

Operator

lines conference. at for this you concludes today's may And your your this you disconnect And time. Thank participation.

Red Robin Gourmet Burgers (RRGB) 29 May 242024 Q1 Earnings call transcript