Company: RRGB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001171759-25-000012
Chunk: 94

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 94
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. Impairment and Other Charges (Gains), netImpairment and other charges consist of the following (in thousands):    

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Table of Contents

Year EndedDecember 29, 2024December 31, 2023December 25, 2022Asset impairment and restaurant closure costs, net$34,080 $12,192 $39,362 Gain on sale of restaurant property(7,425)(29,543)(9,204)Severance and executive transition1,181 3,419 2,280 Other financing costs— — 1,462 Litigation contingencies1,037 9,140 4,148 Asset disposal and other, net4,975 2,129 913 Impairment and other charges (gains), net$33,848 $(2,663)$38,961 Asset Impairment and Restaurant Closure CostsDuring fiscal 2024, the Company closed eight locations and is evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term. The Company recognized non-cash impairment charges of $32.8 million, primarily associated with this review of underperforming locations as well as impairment of quota state liquor licenses at three locations. In addition, the Company recorded $1.2 million in charges associated with the eight store closures in fiscal 2024.During fiscal 2023, the Company recognized non-cash impairment charges of $9.1 million, primarily related to the impairment of long-lived assets at 19 underperforming locations and quota state liquor licenses at three locations. In addition, the Company recorded $3.1 million in charges associated with five closed locations.During fiscal 2022, the Company recognized non-cash impairment charges of $38.5 million, primarily related to impairments of long-lived assets at 46 underperforming locations and quota state liquor licenses at six locations. In addition, the Company recorded $0.8 million in costs associated with 16 closed locations during fiscal 2022.Severance and Executive TransitionDuring fiscal 2024, 2023, and 2022, the Company incurred severance and executive transition costs primarily related to a reduction in force of Team Members and costs associated with changes in leadership positions.Gain on Sale of Restaurant PropertyDuring fiscal 2024, the Company sold ten restaurant properties for aggregate net proceeds of $23.3 million in a sale-leaseback transaction that