Company: RRGB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001171759-25-000028
Chunk: 10

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 Act (OBBBA) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and the restoration of favorable tax treatment for specific business provisions. The legislation has multiple effective dates, with some provisions taking effect in 2025 and others phased in through 2027. In accordance with ASC 740, the effects of changes in tax rates and laws are recognized in the period in which the legislation is enacted. While the Company does not currently anticipate a material impact on the consolidated financial statements, Management is evaluating its potential effects.

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2. Revenue 

Disaggregation of revenueIn the following table, revenue is disaggregated by type of good or service (in thousands):Twelve Weeks EndedTwenty-Eight Weeks EndedJuly 13, 2025July 14, 2024July 13, 2025July 14, 2024Restaurant revenue$279,305 $294,457 $665,115 $673,025 Franchise revenue3,186 4,287 7,675 9,628 Gift card breakage876 1,025 2,581 5,188 Other revenue336 385 684 854 Total revenues$283,703 $300,154 $676,055 $688,695 Contract LiabilitiesComponents of Unearned revenue in the Condensed Consolidated Balance Sheets are as follows (in thousands):July 13, 2025December 29, 2024Unearned gift card revenue$13,083 $24,333 Unearned Royalty revenue3,032 2,750 Unearned revenue$16,115 $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):Twelve Weeks EndedTwenty-Eight Weeks EndedJuly 13, 2025July 14, 2024July 13, 2025July 14, 2024Gift card revenue$1,812 $1,910 $12,516 $14,539  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