Company: RRGB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001171759-25-000012
Chunk: 63

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 63
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 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.

For further information on Impairment and other charges (gains) line items, refer to Note 4. Impairment and Other Charges (Gains), net, of the Notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K.

Interest Expense and Interest Income

Interest expense in fiscal 2024 and 2023 was $25.3 million and $26.6 million, respectively. The $1.3 million decrease was primarily due to the net paydown of debt with the proceeds from the sale-leaseback transactions, partially offset by an increase in the weighted average interest rate to 13.6% in fiscal 2024 compared to 12.7% in fiscal 2023. Average outstanding debt in fiscal 2024 and 2023 was $187.8 million and $205.6 million, respectively.

Interest income and other decreased by $0.4 million in fiscal 2024 primarily due to lower interest income earned on cash investments.

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Income Taxes

Income tax benefit was $0.1 million in fiscal 2024, compared to an income tax provision of $0.3 million in fiscal 2023. Our effective tax rate was a 0.1% benefit in fiscal 2024 and a 1.5% provision in fiscal 2023, reflecting minimum state income taxes and state franchise taxes despite a pretax net loss position.

Non-GAAP Financial Measures

A reconciliation of Restaurant revenue to restaurant level operating profit is detailed in the table below:

Fifty-Two Weeks EndedFifty-Three Weeks Ended2024 compared to 2023(Dollars in millions)December 29, 2024December 31, 2023Increase/(Decrease)Restaurant revenue$1,224.3 $1,274.3 (3.9)%Restaurant operating costs:Cost of sales292.4 309.0 (5.4)%Labor479.6 473.5 1.3 %Other operating216.2 225.0 (3.9)%Occupancy103.4 102.8 0.6 %Total Restaurant Operating Costs$1,091.6