Company: RRGB
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-051046
Chunk: 47

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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 Changes in our unearned revenue balance related to our Royalty program were as follows (in thousands):Twelve Weeks EndedForty Weeks EndedOctober 5, 2025October 6, 2024October 5, 2025October 6, 2024Unearned Royalty revenue, beginning balance$3,032 $1,804 $2,750 $7,509 Revenue deferred1,257 914 4,123 3,953 Revenue recognized (1)(1,097)(385)(3,681)(9,129)Unearned Royalty revenue, ending balance$3,192 $2,333 $3,192 $2,333 (1) Restaurant revenue recognized during the forty weeks ended October 6, 2024 includes a credit of approximately $6.4 million related to the transition to the new Royalty program in the second quarter of fiscal 2024, primarily due to the cancellation of unused points that were earned more than 365 days prior to the launch of the new program.

8

3. Leases

The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in Occupancy on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as follows (in thousands):Twelve Weeks EndedForty Weeks EndedOctober 5, 2025October 6, 2024October 5, 2025October 6, 2024Operating lease cost$16,732 $17,339 $56,737 $57,757 Finance lease cost:Amortization of right of use assets216 216 670 720 Interest on lease liabilities88 96 306 339 Total finance lease cost$304 $312 $976 $1,059 Variable lease cost4,599 4,445 15,443 14,886 Total$21,635 $22,096 $73,156 $73,702 Finance lease assets are recorded in Property and equipment, net, and the net balance as of October 5, 2025 and December 29, 2024 was $4.6 million and $5.3 million, respectively.See Note 5 for information regarding restaurant closures, lease remeasurement gains and losses, and the sale-leaseback transaction completed during the forty weeks ended October 6, 2024.