Company: RRGB
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001171759-25-000020
Chunk: 34

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-05-29
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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 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 Royalty revenue within Restaurant revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when a customer redeems an earned reward. Unearned revenue associated with Royalty is included in Unearned revenue in our Condensed Consolidated Balance Sheets. Changes in our unearned revenue balance related to our Royalty program (in thousands):Sixteen Weeks EndedApril 20, 2025April 21, 2024Unearned Royalty revenue, beginning balance$2,750 $7,509 Revenue deferred1,625 2,325 Revenue recognized(771)(1