Company: RRGB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001171759-25-000012
Chunk: 78

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 78
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, when performing audit procedures to evaluate whether management appropriately identified and evaluated potential impairment indicators, and when evaluating the reasonableness of management’s estimates and assumptions, particularly related to cash flows and market rent.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the impairment of long-lived assets included the following, among others: 

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•We tested the design and operating effectiveness of internal controls over the Company’s assessment and evaluation of potential impairment indicators for long-lived assets and over forecasted cash flows and market rent used in their recoverability and impairment analyses.

•We evaluated the reasonableness of the Company’s evaluation of impairment indicators by: 

◦Evaluating the Company’s process for identifying qualitative and quantitative impairment indicators by location and whether the Company appropriately considered such indicators.

◦Conducting a completeness assessment to determine whether additional impairment indicators were present during the period that were not identified by the Company.

•We tested the mathematical accuracy of management’s calculations and the underlying source of information for a selection of restaurant sites.

•We evaluated the reasonableness of the information in the Company’s forecasted cash flows used in their recoverability and impairment analyses, by comparing the forecasts to: 

◦Historical actual information,

◦Internal communications between management and the Board of Directors,

◦Forecasted information included in analyst and industry reports for the Company.

•We evaluated the Company’s forecasted cash flows for consistency with evidence obtained in other areas of the audit.

•With the assistance of our fair value specialists, we evaluated the market rent by developing a range of independent estimates and comparing those to the market rent used by management.

/s/ Deloitte & Touche LLP

Denver, Colorado

February 26, 2025 

We have served as the Company's auditor since 2021.

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RED ROBIN GOURMET BURGERS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

December 29, 2024December 31, 2023Assets:Current assets:Cash and cash equivalents$30,651 $23,634 Accounts receivable, net19,688 21,592 Inventories26,737 26,839 Prepaid expenses and other current assets13,608 11,785 Restricted cash8,750 7,931 Total current assets99,434 91,781 Property and equipment, net181,224