Company: RRGB
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001171759-25-000020
Chunk: 6

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-05-29
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 the consolidated financial statements.In December 2023, the FASB issued Update 2023-09 to improve income tax disclosure requirements, primarily related to rate reconciliations and income taxes paid. Update 2023-09 is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of the adoption of Update 2023-09 to the consolidated financial statements.In November 2023, FASB issued Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024. Management adopted this ASU beginning with the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024 filed with the SEC on February 26, 2025.We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's Condensed Consolidated Financial Statements.

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2. Revenue 

Disaggregation of revenueIn the following table, revenue is disaggregated by type of good or service (in thousands):Sixteen Weeks EndedApril 20, 2025April 21, 2024Restaurant revenue$385,809 $378,568 Franchise revenue4,489 5,341 Gift card breakage1,705 4,162 Other revenue348 470 Total revenues$392,351 $388,541 Contract LiabilitiesComponents of Unearned revenue in the Condensed Consolidated Balance Sheets are as follows (in thousands):April 20, 2025December 29, 2024Unearned gift card revenue$14,660 $24,333 Unearned Royalty revenue3,604 2,750 Unearned revenue$18,264 $27,083 Revenue recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (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):Sixteen Weeks EndedApril 20, 2025April 21, 2024Gift card revenue$10,704 $12,629  We recognize Roy