Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 6, 2018
RED ROBIN GOURMET BURGERS, INC.
(Exact name of registrant as specified in its charter)

Delaware
001-34851

   
84-1573084
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
6312 S. Fiddler’s Green Circle, Suite 200N
Greenwood Village, Colorado
80111
(Address of principal executive offices)
(Zip Code)

Registrant’s telephone number, including area code: (303) 846-6000

Not Applicable
(Former name or former address, if changed since last report.)
 ___________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

1




ITEM 2.02
Results of Operations and Financial Condition
On November 6, 2018, Red Robin Gourmet Burgers, Inc. issued a press release describing selected financial results for the third fiscal quarter ended October 7, 2018. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. A copy of the supplemental financial information for the second fiscal quarter ended October 7, 2018, that will be referred to during today’s investor conference call and webcast is being furnished as Exhibit 99.2 to this Form 8-K.
The information in this Item 2.02, including the information set forth in Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01 Financial Statements and Exhibits

(d)    Exhibits
Exhibit No.
          Description

2




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RED ROBIN GOURMET BURGERS, INC.

Date: November 6, 2018             
By:     /s/ Guy J. Constant        
Name:    Guy J. Constant
Title:    Executive Vice President and Chief Financial Officer




3





EXHIBIT INDEX

Exhibit No.
          Description



4

Exhibit


Exhibit 99.1

Red Robin Gourmet Burgers Reports Results for the Fiscal Third Quarter Ended October 7, 2018

Greenwood Village, CO – November 6, 2018 – Red Robin Gourmet Burgers, Inc., (NASDAQ: RRGB), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter ended October 7, 2018.
Third Quarter 2018 Financial Highlights Compared to Third Quarter 2017

GAAP earnings per diluted share were $0.13 compared to $0.21;
Adjusted earnings per diluted share were $0.16 compared to $0.21 (see Schedule I);
Total revenues were $294.9 million, a decrease of 3.5%;
Off-premise sales increased 22.7%, now comprising 10.1% of total food and beverage sales;
Comparable restaurant revenue decreased 3.4% (using constant currency rates);
Comparable restaurant guest counts decreased 1.9%;
Cost of sales as a percentage of revenue remained flat at 23.8%; and
Restaurant labor costs as a percentage of restaurant revenue remained flat at 35.3%.

“We are pleased with our continued improvement in managing labor and food costs, fundamental to achieving sustainable profit growth when we regain top-line sales momentum. Our third quarter sales performance was the result of a decline in dine-in traffic, which we expected when we chose mid quarter to shift remaining media weight to later in the year,” said Denny Marie Post, Red Robin Gourmet Burgers, Inc. chief executive officer. “We took the last part of the third quarter to begin retraining all of our restaurant teams on peak-hour service standards based on our success in pilot locations. We believe this will ensure our restaurant teams are well-prepared for seasonally higher volume in the fourth quarter and we are encouraged that we are already seeing improvements in ticket and wait times.”
Operating Results
Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, decreased 3.5% to $294.9 million in the third quarter of 2018 from $305.7 million in the third quarter of 2017. Restaurant revenue decreased $10.9 million due to a $9.9 million, or 3.4%, decrease in comparable restaurant revenue, a $1.5 million decrease from closed restaurants, and a $0.4 million unfavorable foreign currency exchange impact, partially offset by a $0.9 million increase in revenue from new restaurant openings.
System-wide restaurant revenue (which includes franchised units) for the third quarter of 2018 totaled $351.0 million, compared to $361.0 million for the third quarter of 2017.
Comparable restaurant revenue(1) decreased 3.4% in the third quarter of 2018 compared to the same period a year ago, driven by a 1.5% decrease in average guest check and a 1.9% decrease in guest counts. The decrease in average guest check comprised a 3.0% decrease in menu mix, offset by a 1.5% increase in pricing. The Company’s comparable revenue growth is calculated by comparing the same calendar weeks which, for the third quarter of 2017, exclude the first week of the third quarter of 2017 and include the first week of the fourth quarter of 2017.
Net income was $1.7 million for the third quarter of 2018 compared to $2.7 million for the same period a year ago. Adjusted net income was $2.1 million for the third quarter of 2018 (see Schedule I).
Restaurant-level operating profit margin (a non-GAAP financial measure) was 16.8% in the third quarter of 2018 compared to 18.6% in the same period a year ago. Cost of sales as a percentage of restaurant revenue was flat due to increases in steak fries and the impact of higher Tavern mix, which were offset by decreases in ground beef and reductions in food waste. Restaurant labor costs as a percentage of restaurant revenue also remained flat as improvements in labor productivity offset higher average wage rates and sales deleverage. Other restaurant operating costs increased 120 basis points primarily due to sales deleverage and increases in restaurant technology, equipment repairs and maintenance, third-party delivery fees, and utility costs. Occupancy costs increased 60 basis points due to increases in real estate and personal property tax. Schedule II of this earnings release defines restaurant-level operating profit, discusses why it is a useful metric for investors, and reconciles this metric to income from operations and net income, in each case under GAAP.
________________________________________
(1)
Comparable restaurants are those Company-owned restaurants that have operated five full quarters during the period presented, and such restaurants are only included in the comparable metrics if they are comparable for the entirety of both periods presented.





Restaurant Revenue Performance
 
Q3 2018
 
Q3 2017
Average weekly sales per unit(1):

 
 
Company-owned – Total
$
49,995

 
$
52,877

Company-owned – Comparable(2)
$
50,282

 
$
52,632

Franchised units – Comparable
$
57,298

 
$
57,619

Total operating weeks:
 
 
 
Company-owned units
5,805

 
5,686

Franchised units
1,064

 
1,032

________________________________________
(1)
Calculated using constant currency rates. Using historical currency rates, the average weekly sales per unit in the third quarter of 2017 for Company-owned – Total and Company-owned – Comparable was $52,955 and $52,711. The Company calculates non-GAAP constant currency average weekly sales per unit by translating prior year local currency average weekly sales per unit to U.S. dollars based on current quarter average exchange rates. The Company considers non-GAAP constant currency average weekly sales per unit to be a useful metric to investors and management as they facilitate a more useful comparison of current performance to historical performance.
(2)
Using the same calendar weeks as compared to the third quarter 2018, the average weekly sales per unit in the third quarter of 2017, using constant currency rates, was $52,231.
Other Results
Depreciation and amortization costs increased to $21.8 million in the third quarter of 2018 from $21.3 million in the third quarter of 2017. The increase was primarily related to new restaurant technology implemented beginning in third quarter 2017 and new restaurants opened since the third quarter of 2017.
General and administrative costs were $16.8 million, or 5.7% of total revenues, in the third quarter of 2018, compared to $18.6 million, or 6.1% of total revenues in the same period a year ago. The decrease was primarily due to decreases in salaries and team member benefits related to the reorganization in the first quarter 2018, as well as lower incentive and equity compensation.
Selling expenses were $12.0 million, or 4.1% of total revenues, in the third quarter of 2018, compared to $15.2 million, or 5.0% of total revenues, during the same period in the prior year. The decrease was primarily due to our choice of shifting media spend to the fourth quarter of 2018.
Pre-opening costs were $0.4 million in the third quarter of 2018, compared to $1.5 million in the same period a year ago. The decrease was primarily due to the decrease in number of restaurant openings.
Other charges in the third quarter of 2018 included $0.5 million in reorganization costs.
The tax benefit was $2.2 million in the third quarter of 2018, compared to $0.7 million during the same period in the prior year. The change was primarily due to the decrease in income, as well as the decrease in the federal statutory rate from 35% to 21% that occurred in the first quarter of 2018.
Earnings per diluted share for the third quarter of 2018 was $0.13 compared to earnings per diluted share of $0.21 in third quarter of 2017. Excluding charges of $0.03 per diluted share for reorganization costs, adjusted earnings per diluted share for the third quarter ended October 7, 2018 were $0.16. See Schedule I for a reconciliation of adjusted net income and adjusted earnings per share (each, a non-GAAP financial measure) to net income and earnings per share.
Restaurant Development
During the third quarter of 2018, the Company opened two Red Robin restaurants and our franchisees opened one Red Robin restaurant.



The following table details restaurant unit data for Company-owned and franchised locations for the periods indicated:
 
 
Twelve Weeks Ended
 
Forty Weeks Ended
 
 
October 7, 2018
 
October 1, 2017
 
October 7, 2018
 
October 1, 2017
Company-owned:
 
 
 
 
 
 
 
 
Beginning of period
 
484

 
472

 
480

 
465

Opened during the period
 
2

 
7

 
8

 
16

Acquired from franchisees
 

 

 

 

Closed during the period
 
(1
)
 

 
(3
)
 
(2
)
End of period
 
485

 
479

 
485

 
479

Franchised:
 
 
 
 
 
 
 
 
Beginning of period
 
88

 
86

 
86

 
86

Opened during the period
 
1

 

 
3

 
1

Sold or closed during the period
 

 

 

 
(1
)
End of period
 
89

 
86

 
89

 
86

Total number of restaurants
 
574

 
565

 
574

 
565

Balance Sheet and Liquidity
As of October 7, 2018, the Company had cash and cash equivalents of $20.4 million and total debt of $220.9 million, excluding $10.4 million of capital lease liabilities. The Company funded construction of new restaurants and other capital expenditures with cash flow from operations and made net repayments of $0.5 million on its credit facility during the third quarter of 2018. As of October 7, 2018, the Company had outstanding borrowings under its credit facility of $220.0 million, in addition to amounts issued under letters of credit of $7.6 million, which reduce the amount available under its credit facility but are not recorded as debt.
The Company’s lease adjusted leverage ratio was 4.03x as of October 7, 2018. The lease adjusted leverage ratio is defined in Section 1.1 of the Company’s credit facility, which is filed as Exhibit 10.32 in the Annual Report on Form 10-K filed on February 21, 2017.
Outlook for 2018
Earnings per diluted share is projected to be in the range of $1.60 to $1.80 for full-year 2018.
Guidance Policy
The Company provides guidance as it relates to selected information related to the Company’s financial and operating performance, and such measures may differ from year to year.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its third quarter 2018 results today at 5:00 p.m. ET. The conference call number is (888) 224-1005, or for international callers (323) 994-2093. The financial information that the Company intends to discuss during the conference call is included in this press release and will be available in the “Company” section of the Company’s website at www.redrobin.com by selecting the “Investor Relations” link, then the “Calendar of Events” link. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.
To access the supplemental financial information and webcast, please visit www.redrobin.com and select the “Company” section, then the “Investor Relations” link, then the “Presentations” link. A replay of the live conference call will be available from two hours after the call until midnight on Tuesday, November 13, 2018. The replay can be accessed by dialing (844) 512-2921, or (412) 317-6671 for international callers. The conference ID is 2625863.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name Red Robin Gourmet Burgers and Brews, is the Gourmet Burger Authority, famous for serving more than two dozen craveable, high-quality burgers with Bottomless Steak Fries® in a fun environment welcoming to guests of all ages. Whether a family dining with kids, adults grabbing a drink at the bar, or teens enjoying a meal, Red Robin offers an unparalleled experience for its guests. In addition to its many burger offerings, Red Robin serves a wide variety of salads, soups, appetizers, entrees, desserts, and signature beverages. Red Robin offers a variety of options behind the bar, including its extensive selection of local and regional beers, and innovative adult beer shakes and cocktails, earning the restaurant a VIBE Vista Award for Best Beer Program in a Multi-Unit Chain Restaurant. There are more than 570 Red



Robin restaurants across the United States and Canada, including locations operating under franchise agreements. Red Robin… YUMMM®! Connect with Red Robin on Facebook, Instagram, and Twitter.
Forward-Looking Statements
Forward-looking statements in this press release regarding the Company’s future performance, restaurant sales and guest traffic, earnings per share, new unit development, and statements under the heading “Outlook for 2018”, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as “expect,” “believe,” “anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the effectiveness of the Company’s strategic initiatives including the Company’s affordability initiatives to drive traffic and sales; the effectiveness of the Company’s marketing strategies and promotions to achieve restaurant sales growth; the cost and availability of key food products, labor, and energy; the ability to achieve anticipated revenue and cost savings from anticipated new technology systems and tools in the restaurants; the ability to develop, test, implement and increase online ordering, to-go services, catering, and other off-premise sales; the ability to increase labor productivity through alternative labor models, and to train our workforce for service execution complexities related to growth of multiple revenue streams in the restaurant; the success of our refranchising efforts; our ability to repurchase shares at all or at the times or in the amounts we currently anticipate or to achieve anticipated benefits of a share repurchase program; availability of capital or credit facility borrowings; the adequacy of cash flows or available debt resources to fund operations and growth opportunities; the impact of federal, state, and local regulation of the Company’s business; and other risk factors described from time to time in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.
For media relations questions contact:
Brian Farley, Coyne PR
(973) 588-2000
For investor relations questions contact:
PJ Adler
Red Robin Investor Relations
303-846-5040




RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
Twelve Weeks Ended
 
Forty Weeks Ended
 
 
October 7, 2018
 
October 1, 2017
 
October 7, 2018
 
October 1, 2017
Revenues:
 
 
 
 
 
 
 
 
Restaurant revenue
 
$
290,218

 
$
301,100

 
$
1,015,312

 
$
1,026,902

Franchise and other revenue
 
4,659

 
4,600

 
16,472

 
16,737

Total revenues
 
294,877

 
305,700

 
1,031,784

 
1,043,639

 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
Restaurant operating costs (exclusive of depreciation
and amortization shown separately below):
 
 
 
 
 
 
 
 
Cost of sales
 
69,003

 
71,642

 
242,392

 
240,152

Labor
 
102,322

 
106,205

 
351,813

 
360,146

Other operating
 
43,612

 
41,454

 
141,305

 
133,575

Occupancy
 
26,629

 
25,868

 
88,099

 
84,127

Depreciation and amortization
 
21,819

 
21,258

 
73,335

 
70,475

General and administrative
 
16,763

 
18,562

 
65,752

 
71,402

Selling
 
12,017

 
15,152

 
44,963

 
46,563

Pre-opening costs
 
387

 
1,503

 
2,093

 
4,735

Other charges
 
520

 

 
17,422

 
1,584

Total costs and expenses
 
293,072

 
301,644

 
1,027,174

 
1,012,759

 
 
 
 
 
 
 
 
 
Income from operations
 
1,805

 
4,056

 
4,610

 
30,880

 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
Interest expense, net and other
 
2,295

 
2,032

 
8,087

 
7,469

 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
(490
)
 
2,024

 
(3,477
)
 
23,411

Income tax (benefit) provision
 
(2,199
)
 
(690
)
 
(7,692
)
 
2,199

Net income
 
$
1,709

 
$
2,714

 
$
4,215

 
$
21,212

Earnings per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.13

 
$
0.21

 
$
0.32

 
$
1.65

Diluted
 
$
0.13

 
$
0.21

 
$
0.32

 
$
1.63

Weighted average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
12,994
 
12,927
 
12,977
 
12,888
Diluted
 
13,054
 
13,023
 
13,064
 
12,986



RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
 
 
(Unaudited)
October 7, 2018
 
December 31, 2017
Assets:
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
20,368

 
$
17,714

Accounts receivable, net
 
12,801

 
26,499

Inventories
 
29,197

 
29,553

Prepaid expenses and other current assets
 
21,503

 
31,038

Total current assets
 
83,869

 
104,804

 
 
 
 
 
Property and equipment, net
 
595,429

 
638,151

Goodwill
 
96,548

 
96,979

Intangible assets, net
 
35,632

 
38,273

Other assets, net
 
43,337

 
32,408

Total assets
 
$
854,815

 
$
910,615

 
 
 
 
 
Liabilities and Stockholders’ Equity:
 
 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
 
$
28,161

 
$
35,347

Accrued payroll and payroll related liabilities
 
35,248

 
32,777

Unearned revenue
 
38,237

 
55,915

Accrued liabilities and other
 
40,579

 
36,300

Total current liabilities
 
142,225

 
160,339

 
 
 
 
 
Deferred rent
 
77,234

 
74,980

Long-term debt
 
220,875

 
266,375

Long-term portion of capital lease obligations
 
9,611

 
10,197

Other non-current liabilities
 
10,698

 
11,289

Total liabilities
 
460,643

 
523,180

 
 
 
 
 
Stockholders’ Equity:
 
 
 
 
Common stock; $0.001 par value: 45,000 shares authorized; 17,851 and 17,851 shares issued; 12,996 and 12,954 shares outstanding
 
18

 
18

Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding
 

 

Treasury stock 4,855 and 4,897 shares, at cost
 
(200,748
)
 
(202,485
)
Paid-in capital
 
212,002

 
210,708

Accumulated other loss, net of tax
 
(4,075
)
 
(3,566
)
Retained earnings
 
386,975

 
382,760

Total stockholders’ equity
 
394,172

 
387,435

Total liabilities and stockholders’ equity
 
$
854,815

 
$
910,615




Schedule I
Reconciliation of Non-GAAP Results to GAAP Results
(In thousands, except per share data)

In addition to the results provided in accordance with Generally Accepted Accounting Principles (“GAAP”) throughout this press release, the Company has provided non-GAAP measurements which present the 12 and 40 weeks ended October 7, 2018 and October 1, 2017, net income and basic and diluted earnings per share, excluding the effects of litigation contingencies, reorganization costs, and the related income tax effects. The Company believes the presentation of net income and earnings per share exclusive of the identified item gives the reader additional insight into the ongoing operational results of the Company. This supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein. Income tax effect of reconciling items was calculated based on the change in the total tax provision calculation after adjusting for the identified item. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP.
 
 
Twelve Weeks Ended
 
Forty Weeks Ended
 
 
October 7, 2018
 
October 1, 2017
 
October 7, 2018
 
October 1, 2017
Net income as reported
 
$
1,709

 
$
2,714

 
$
4,215

 
$
21,212

Asset impairment
 

 

 
9,643

 
1,584

Litigation contingencies
 

 

 
4,000

 

Spiral menu disposal
 

 

 
506

 

Reorganization costs
 
520

 

 
3,273

 

Income tax effect of reconciling items
 
(135
)
 

 
(4,529
)
 
(618
)
Adjusted net income
 
$
2,094

 
$
2,714

 
$
17,108

 
$
22,178

 
 
 
 
 
 
 
 
 
Basic net income per share:
 
 
 
 
 
 
 
 
Net income as reported
 
$
0.13

 
$
0.21

 
$
0.32

 
$
1.65

Asset Impairment
 

 

 
0.74

 
0.12

Litigation contingencies
 

 

 
0.31

 

Spiral menu disposal
 

 

 
0.04

 

Reorganization costs
 
0.04

 

 
0.25

 

Income tax effect of reconciling items
 
(0.01
)
 

 
(0.35
)
 
(0.05
)
Adjusted earnings per share - basic
 
$
0.16

 
$
0.21

 
$
1.31

 
$
1.72

 
 
 
 
 
 
 
 
 
Diluted net income per share (1):
 
 
 
 
 
 
 
 
Net income as reported
 
$
0.13

 
$
0.21

 
$
0.32

 
$
1.63

Asset Impairment
 

 

 
0.74

 
0.12

Litigation contingencies
 

 

 
0.31

 

Spiral menu disposal
 

 

 
0.04

 

Reorganization costs
 
0.04

 

 
0.25

 

Income tax effect of reconciling items
 
(0.01
)
 

 
(0.35
)
 
(0.04
)
Adjusted earnings per share - diluted
 
$
0.16

 
$
0.21

 
$
1.31

 
$
1.71

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
Basic
 
12,994

 
12,927

 
12,977

 
12,888

Diluted
 
13,054

 
13,023

 
13,064

 
12,986







Schedule II
Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income
from Operations and Net Income
(In thousands)
The Company believes that restaurant-level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company defines restaurant-level operating profit to be restaurant revenue minus restaurant-level operating costs, excluding restaurant impairment and closure costs. The measure includes restaurant-level occupancy costs, which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation related to restaurant buildings and leasehold improvements. The measure excludes depreciation and amortization expense, substantially all of which is related to restaurant-level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes selling, general, and administrative costs, and therefore excludes occupancy costs associated with selling, general, and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded, because, similar to depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income from operations or net income as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies in our industry. The table below sets forth certain unaudited information for the 12 and 40 weeks ended October 7, 2018 and October 1, 2017, expressed as a percentage of total revenues, except for the components of restaurant-level operating profit, which are expressed as a percentage of restaurant revenue.
 
 
Twelve Weeks Ended
 
Forty Weeks Ended
 
 
October 7, 2018
 
October 1, 2017
 
October 7, 2018
 
October 1, 2017
Restaurant revenue
 
$
290,218

 
98.4
 %
 
$
301,100

 
98.5
 %
 
$
1,015,312

 
98.4
 %
 
$
1,026,902

 
98.4
%
Restaurant operating costs (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
69,003

 
23.8
 %
 
71,642

 
23.8
 %
 
242,392

 
23.9
 %
 
240,152

 
23.4
%
Labor
 
102,322

 
35.3
 %
 
106,205

 
35.3
 %
 
351,813

 
34.7
 %
 
360,146

 
35.1
%
Other operating
 
43,612

 
15.0
 %
 
41,454

 
13.8
 %
 
141,305

 
13.9
 %
 
133,575

 
13.0
%
Occupancy
 
26,629

 
9.2
 %
 
25,868

 
8.6
 %
 
88,099

 
8.7
 %
 
84,127

 
8.2
%
Restaurant-level operating profit
 
48,652

 
16.8
 %
 
55,931

 
18.6
 %
 
191,703

 
18.9
 %
 
208,902

 
20.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add – Franchise and other revenue
 
4,659

 
1.6
 %
 
4,600

 
1.5
 %
 
16,472

 
1.6
 %
 
16,737

 
1.6
%
Deduct – other operating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
21,819

 
7.4
 %
 
21,258

 
7.0
 %
 
73,335

 
7.1
 %
 
70,475

 
6.8
%
General and administrative expenses
 
16,763

 
5.7
 %
 
18,562

 
6.1
 %
 
65,752

 
6.4
 %
 
71,402

 
6.8
%
Selling
 
12,017

 
4.1
 %
 
15,152

 
5.0
 %
 
44,963

 
4.4
 %
 
46,563

 
4.5
%
Pre-opening costs
 
387

 
0.1
 %
 
1,503

 
0.5
 %
 
2,093

 
0.2
 %
 
4,735

 
0.5
%
Other charges
 
520

 
0.2
 %
 

 
0.0
 %
 
17,422

 
1.7
 %
 
1,584

 
0.2
%
Total other operating
 
51,506

 
17.5
 %
 
56,475

 
18.5
 %
 
203,565

 
19.7
 %
 
194,759

 
18.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
1,805

 
0.6
 %
 
4,056

 
1.3
 %
 
4,610

 
0.4
 %
 
30,880

 
3.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net and other
 
2,295

 
0.8
 %
 
2,032

 
0.7
 %
 
8,087

 
0.8
 %
 
7,469

 
0.7
%
Income tax (benefit) provision
 
(2,199
)
 
(0.7
)%
 
(690
)
 
(0.2
)%
 
(7,692
)
 
(0.7
)%
 
2,199

 
0.2
%
Total other
 
96

 
 %
 
1,342

 
0.4
 %
 
395

 
0.0
 %
 
9,668

 
0.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
1,709

 
0.6
 %
 
$
2,714

 
0.9
 %
 
$
4,215

 
0.4
 %
 
$
21,212

 
2.0
%
(1)
Excluding depreciation and amortization, which is shown separately.



Certain percentage amounts in the table above do not total due to rounding as well as the fact that components of restaurant-level operating profit are expressed as a percentage of restaurant revenue and not total revenues.



Schedule III
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
(In thousands, unaudited)

The Company defines EBITDA as net income before interest expense, provision (benefit) for income taxes, and depreciation and amortization. EBITDA and adjusted EBITDA are presented because the Company believes investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for evaluating our ongoing results of operations without the effect of non-cash charges such as depreciation and amortization expenses, asset disposals, and asset impairment and restaurant closure charges. EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies in our industry or otherwise. Adjusted EBITDA further adjusts EBITDA to reflect the additions and eliminations shown in the table below. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items. We have not provided a reconciliation of our adjusted EBITDA outlook to the most comparable GAAP measure of net income. Providing net income guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in net income, including asset impairments and income tax valuation adjustments. The reconciliations of adjusted EBITDA to net income for the historical periods presented below are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.
 
 
Twelve Weeks Ended
 
Forty Weeks Ended
 
 
October 7, 2018
 
October 1, 2017
 
October 7, 2018
 
October 1, 2017
Net income as reported
 
$
1,709

 
$
2,714

 
$
4,215

 
$
21,212

Interest expense, net
 
2,390

 
2,222

 
8,125

 
8,097

Income tax (benefit) provision
 
(2,199
)
 
(690
)
 
(7,692
)
 
2,199

Depreciation and amortization
 
21,819

 
21,258

 
73,335

 
70,475

EBITDA
 
23,719

 
25,504

 
77,983

 
101,983

 
 
 
 
 
 
 
 
 
Asset Impairment
 

 

 
9,643

 
1,584

Litigation contingencies
 

 

 
4,000

 

Spiral menu disposal
 

 

 
506

 

Reorganization costs
 
520

 

 
3,273

 

Adjusted EBITDA
 
$
24,239

 
$
25,504

 
$
95,405

 
$
103,567



rrgbq318supplementalfina
Third Quarter 2018 Results November 6, 2018 CLASSIFIED – INTERNAL USE ONLY


 
Forward-Looking Statements Forward-looking statements in this presentation regarding the Company’s future performance, restaurant sales and guest traffic, earnings per share, new restaurant openings, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as “expect,” “believe,” “anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date, and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the effectiveness of the Company’s strategic initiatives including the Company’s affordability initiatives to drive traffic and sales; the effectiveness of the Company’s marketing strategies and promotions to achieve restaurant sales growth; the cost and availability of key food products, labor, and energy; the ability to achieve anticipated revenue and cost savings from anticipated new technology systems and tools in the restaurants; the ability to develop, test, implement and increase online ordering, to-go services, catering, and other off-premise sales; the ability to increase labor productivity through alternative labor models, and to train our workforce for service execution complexities related to growth of multiple revenue streams in the restaurant; our ability to repurchase shares at all or at the times or in the amounts we currently anticipate or to achieve anticipated benefits of a share repurchase program; availability of capital or credit facility borrowings; the adequacy of cash flows or available debt resources to fund operations and growth opportunities; the impact of federal, state, and local regulation of the Company’s business; and other risk factors described from time to time in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission. This presentation may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in results, and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the Appendix of this presentation or the Schedules to the Q3 press release posted on redrobin.com.


 
Red Robin Q3-2018 Results • Total revenues decreased 3.5% • Off-premise sales increased to 10.1% of total food and beverage sales • Comparable restaurant revenue decreased 3.4% (using constant currency rates) • Comparable restaurant guest counts decreased 1.9% • Restaurant labor costs as a percentage of restaurant revenue remained flat at 35.3% • Earnings per diluted share were $0.13 compared to earnings per diluted share of $0.21 in Q3 2017. Adjusted diluted EPS(1) were $0.16 compared to $0.21 in Q3 2017 • Opened 2 company-owned Red Robin® restaurants and 1 franchised Red Robin® restaurant (1) See reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures in Appendix.


 
Continued Off-Premise Sales Growth US Comp Locations Off-Premise Sales as a % of Gross F&B Sales 12.0% 10.1% 10.0% 9.4% 9.6% 8.3% 8.0% 7.6% 7.0% 6.3% 5.7% 6.0% 5.4% 4.0% 2.0% 0.0% Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18


 
Traffic Performance vs. Competitors 5.0% 4.0% 4.0% 3.6% 3.6% 3.0% 2.2% 2.3% 2.0% 1.6% 1.2% 1.2% 1.0% -1.5% 0.0% -0.6% -1.0% -0.9% -2.0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Source: Based on Black Box Intelligence Casual Dining (All Cuisine) peers as of 10/7/2018


 
Two Year Traffic Outperformance vs. Competition 7.0% 6.0% 5.8% 5.2% 5.2% 5.0% 4.0% 3.5% 3.0% 3.0% 2.5% 2.0% 1.0% 0.3% 0.0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Source: Based on Black Box Intelligence Casual Dining (All Cuisine) peers as of 10/7/2018


 
Recapturing Red Robin Service Standards • Increased in-restaurant training to provide faster seating and service • Strengthened To-Go capabilities, especially during peak times • Focused on delivering great dine-in and off-premise service


 
Strong Relative Value Story


 
More Appealing Menu Offers and Value


 
Oktoberfest Burger Fan Celebration Daily Breeze Staff Photos


 
Holiday Season Menu Features


 
What Red Robin is Known For • Craveable, Customizable Gourmet Burgers • Great Service at Appropriate Speed • Affordable Abundance


 
Financial Update


 
Q3-18 Sales Highlights Q3-18 Q3-17 Q3-18 YTD Q3-17 YTD Change Change (12 Weeks) (12 Weeks) (40 Weeks) (40 Weeks) Restaurant revenue $290.2 million $301.1 million -3.6% $1.02 billion $1.03 billion -1.1% Total company revenues $294.9 million $305.7 million -3.5% $1.03 billion $1.04 billion -1.1% Company-owned comp revenue(1)(2) -3.4% -0.1% -2.1% -0.2% Price/Mix -1.5% -0.1% -1.4% -0.1% Guest counts -1.9% 0.0% -0.7% -0.1% Franchised comp revenue(2) -0.6% -3.0% 0.0% -2.8% Company avg. weekly revenue/unit(1) – total $49,995 $52,877 -5.5% $52,482 $54,640 -3.9% Company avg. weekly revenue/unit(1)(3) – comp $50,282 $52,632 -4.5% $52,939 $54,668 -3.2% Avg. weekly restaurant level operating profit/unit(1) – comp $8,526 $9,650 -11.7% $10,088 $11,103 -9.1% Operating weeks 5,805 5,686 2.1% 19,346 18,803 2.9% Net Sales/ sq. ft (TTM) $441 $447 -1.3% (1) Calculated at constant currency rates (2) Comparable revenue growth is calculated by comparing the same calendar weeks which, for the third quarter of 2017, exclude the first week of the third quarter of 2017 and include the first week of the fourth quarter of 2017 (3) Using the same calendar weeks as compared to the third quarter 2018, the average weekly sales per unit in the third quarter of 2017, using constant currency rates, was $52,231 resulting in a change of -3.7%. Using the same calendar weeks as compared to the forty weeks ended October 7, 2018, the average weekly sales per unit for forty weeks in 2017, using constant currency rates, was $54,146 resulting in a change of -2.2%


 
Comparable Restaurant Revenue Trend(1) 5.0% 3.0% 2.7% 1.0% 0.5% -0.1% -1.0% -0.9% -1.2% -3.0% -2.6% -2.6% -3.2% -3.4% -3.6% -4.3% -5.0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 (1) Calculated at constant currency rates


 
(1)(2) Restaurant Level Operating Profit Margins 25.0% 24.0% 23.0% 22.8% 22.0% 21.3% 21.4% 21.0% 20.8% 20.5% 20.0% 20.0% 19.8% 19.3% 19.1% 19.0% 18.6% 18.0% 17.0% 16.8% 16.0% Q1 Q2 Q3 Q4 2016 2017 2018 (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss) (2) Prior period local marketing costs have been reclassified from Other operating to Selling to conform with the current period presentation


 
Q3-18 Restaurant Results % of Restaurant % of Restaurant Revenue Revenue Favorable Q3-18 Q3-17 (Unfavorable) Cost of sales 23.8% 23.8% - Labor 35.3% 35.3% - Other operating 15.0% 13.8% (120 bps) Occupancy 9.2% 8.6% (60 bps) Restaurant Level Operating Profit(1) 16.8% 18.6% (180 bps) (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss)


 
Significant Productivity Improvement US Comp Locations Labor Productivity Improvement Year over Year 14.0% 11.8% 12.0% 10.9% 10.0% 8.0% 8.0% 6.3% 6.0% 4.0% 2.4% 2.0% 1.6% 0.0% -0.8% -2.0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18


 
Adjusted EBITDA(1) $55.0 $50.0 $48.9 $45.8 $45.0 $42.4 $40.0 $35.8 $35.0 $33.5 $32.3 $30.0 $28.8 $29.2 $26.8 $25.5 $25.0 $24.2 $20.0 $15.0 $10.0 Q1 Q2 Q3 Q4 2016 2017 2018 (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss)


 
Adjusted Earnings Per Diluted Share $1.40 $1.27 $1.20 $1.00 $0.89 $0.80 $0.75 $0.78 $0.69 $0.61 $0.60 $0.46 $0.38 $0.40 $0.35 $0.21 $0.20 $0.16 $0.00 Q1 Q2 Q3 Q4 2016 2017 2018 See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share


 
In Closing


 
Appendix


 
Adjusted Net Income(1) ($ in Millions) $20.0 $18.0 $17.6 $16.0 $14.0 $12.0 $11.6 $10.3 $10.2 $10.0 $9.1 $7.9 $8.0 $6.0 $6.0 $5.0 $4.5 $4.0 $2.7 $2.1 $2.0 $0.0 Q1 Q2 Q3 Q4 2016 2017 2018 (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss)


 
Cash Flow from Operations ($ in Millions) $80.0 $70.0 $70.0 $60.0 $57.0 $50.0 $42.5 $40.0 $34.7 $35.0 $30.0 $27.6 $24.6 $20.0 $20.0 $16.9 $11.8 $10.0 $4.3 $0.0 Q1 Q2 Q3 Q4 2016 2017 2018


 
Q3-18 Commodity Update % of Total COGS in Market vs. Contract Q3-18 Steak fries 13.7% 100% contracted through 10/19 Ground beef 12.8% Market Poultry 9.9% 100% contracted though 1/19 Produce 7.8% 70% contracted through 10/19 Bacon 100% contracted through 11/18; Meat 7.0% Prime rib 100% contracted through 6/19 Angus: Market Bread 6.2% 100% contracted through 12/18 Cod 100% contracted through 3/19 and Shrimp 100% Seafood 2.7% contracted through 12/18 Fry oil 1.9% 100% contracted through 6/19


 
Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share ($ in thousands, except per share data) 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income (loss) as reported $ 14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 $ 6,931 $ 2,714 $ 8,807 $ 4,380 $ (1,874) $ 1,709 Adjustments to net income (loss): Asset impairment and restaurant closure costs 825 3,860 9,321 20,420 - 1,584 - 5,330 - 9,643 - Litigation contingencies 3,900 - - - - - - - 4,000 - Spiral menu disposal - - - - - - - - - 506 - Reorganization costs - - - 1,322 - - - - 2,287 466 520 Income tax (expense) benefit of adj. (1,356) (1,153) (2,993) (8,470) - (618) - (1,175) (1,617) (2,777) (135) Deferred tax liability remeasurement due to Tax Cuts and Jobs Act - - - - - - - (2,808) - - - Adjusted net income 17,594 10,259 5,028 4,520 11,567 7,897 2,714 10,154 9,050 5,964 2.094 Diluted net income (loss) per share(1): Net income (loss) as reported $ 1.03 $ 0.55 $ (0.10) $ (0.68) $ 0.89 $ 0.53 $ 0.21 $ 0.68 $ 0.34 $ (0.14) $ 0.13 Adjustments to net income (loss): Asset impairment and restaurant closure costs 0.06 0.28 0.70 1.58 - 0.12 - 0.41 - 0.74 - Litigation contingencies 0.28 - - - - - - - 0.30 - - Spiral menu disposal - - - - - - - - - 0.04 - Reorganization costs - - - 0.10 - - - - 0.17 0.04 0.04 Income tax (expense) benefit of adj. (0.10) (0.08) (0.22) (0.65) - (0.04) - (0.09) (0.12) (0.22) (0.01) Deferred tax liability remeasurement due to Tax Cuts and Jobs Act - - - - - - - (0.22) - - - Adjusted EPS - diluted $ 1.27 $ 0.75 $ 0.38 $ 0.35 $ 0.89 $ 0.61 $ 0.21 $ 0.78 $ 0.69 $ 0.46 $ 0.16 (1) For the third and fourth quarters of 2016, and the second quarter of 2018, the impact of dilutive shares is included in the calculations as the adjustments for the quarter resulted in adjusted net income. In the fourth quarter of 2016, the calculation for Asset impairment and restaurant closure costs includes $0.01 related to the effect of the diluted shares on net loss per share as reported.


 
Restaurant Level Operating Profit Reconciliation to Income from Operations and Net Income (Loss) ($ in thousands) 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Restaurant revenue $ 396,770 $ 302,117 $ 293,858 $ 287,924 $ 413,451 $ 312,351 $ 301,100 $ 338,154 $ 414,702 $ 310,392 $290,218 Restaurant operating costs(1): Cost of sales 92,325 70,831 69,447 65,646 94,607 73,903 71,642 80,203 98,515 74,874 69,003 Labor 132,984 102,847 102,294 101,107 145,519 108,422 106,205 115,286 143,015 106,476 102,322 (2) Other operating 48,587 38,986 40,834 39,319 52,064 40,057 41,454 44,734 55,025 42,668 43,612 Occupancy 32,498 24,905 25,121 24,884 33,119 25,140 25,868 28,626 35,010 26,460 26,629 Restaurant-level operating profit 90,376 64,549 56,161 56,968 88,142 64,828 55,932 69,309 83,137 59,914 48,652 Add – Franchise and other revenue(2) 7,670 4,957 4,934 4,957 7,178 4,959 4,599 5,770 6,817 4,996 4,659 Deduct – Other operating: Depreciation and amortization 23,951 19,159 21,468 22,117 28,044 21,173 21,258 22,070 29,193 22,323 21,819 General and administrative expenses 31,980 19,972 20,328 19,015 30,913 21,927 18,562 21,874 28,588 20,408 16,763 (2) Selling 14,843 13,862 11,830 12,803 17,050 14,361 15,152 16,818 17,730 15,209 12,017 Pre-opening and acquisition costs 2,372 2,238 2,382 1,033 1,855 1,377 1,503 835 1,137 569 387 (2) Other charges 4,725 3,860 9,321 21,742 - 1,584 - 5,330 6,287 10,615 520 Total other operating 77,871 59,091 65,328 76,710 77,862 60,422 56,475 66,927 82,935 69,124 51,506 Income (loss) from operations 20,175 10,415 (4,235) (14,785) 17,458 9,366 4,056 8,152 7,019 (4,214) 1,805 Interest expense, net and other 1,638 1,486 1,612 2,046 2,984 2,453 2,032 2,543 3,407 2,385 2,295 Income tax expense (benefit) 4,312 1,377 (4,547) (8,079) 2,907 (18) (690) (3,198) (768) (4,725) (2,199) Net income (loss) 14,225 7,552 (1,300) (8,752) 11,567 6,931 2,714 8,807 4,380 (1,874) 1,709 (1) Excluding depreciation and amortization, which is shown separately. (2) Certain amounts presented in prior periods have been reclassified to conform with the current period presentation.


 
EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) ($ in thousands) 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income (loss) as reported $ 14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 $ 6,931 $ 2,714 $ 8,807 $ 4,380 $ (1,874) $ 1,709 Adjustments to net income (loss): Income tax expense (benefit) 4,312 1,377 (4,547) (8,079) 2,907 (18) (690) (3,198) (768) (4,725) (2,199) Interest expense, net 1,655 1,555 1,822 2,161 3,249 2,626 2,222 2,821 3,277 2,458 2,390 Depreciation and amortization 23,951 19,159 21,468 22,117 28,044 21,173 21,258 22,070 29,193 22,323 21,819 EBITDA $ 44,143 $ 29,643 $ 17,443 $ 7,447 $ 45,767 $ 30,712 $ 25,504 $ 30,500 $ 36,082 $ 18,182 $ 23,719 Asset impairment and restaurant closure 825 3,860 9,321 20,420 - 1,584 - 5,330 - 9,643 - costs Litigation contingencies 3,900 - - - - - - - 4,000 - - Spiral menu disposal - - - - - - - - - 506 - Reorganization costs - - - 1,322 - - - - 2,287 466 520 Adjusted EBITDA $ 48,868 $ 33,503 $ 26,764 $ 29,189 $ 45,767 $ 32,296 $ 25,504 $ 35,830 $ 42,369 $ 28,797 $ 24,239