Company: RRGB
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001171759-25-000020
Chunk: 18

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-05-29
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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. Franchise restaurants reported a decrease of 1.6% in comparable restaurant revenue in the first quarter of fiscal 2025 compared to the same period in fiscal 2024. 

 Other revenue decreased $2.6 million in the first quarter of fiscal 2025 compared to the same period of fiscal 2024. The decrease is primarily related to lower gift card breakage in the current period.

Cost of Sales

Sixteen Weeks Ended(In thousands, except percentages)April 20, 2025April 21, 2024Percent ChangeCost of sales$88,028 $90,209 (2.4)%As a percent of restaurant revenue22.8 %23.8 %(1.0)%

Cost of sales, which comprises food and beverage costs, is variable and generally fluctuates with sales volume. Cost of sales as a percentage of restaurant revenue decreased 100 basis points for the first quarter of fiscal 2025 as compared to the comparable period in fiscal 2024. The decrease was primarily driven by menu price increases and vendor contributions to support our annual Partner recognition events which is recorded as a reduction to cost of sales, partially offset by an increase in commodity prices. 

18

LaborSixteen Weeks Ended(In thousands, except percentages)April 20, 2025April 21, 2024Percent ChangeLabor$143,058 $148,958 (4.0)%As a percent of restaurant revenue37.1 %39.3 %(2.2)%

Labor costs include restaurant level hourly wages and management salaries as well as related taxes and benefits. For the first quarter of fiscal 2025, labor as a percentage of restaurant revenue decreased 220 basis points compared to the same period in fiscal 2024. The decrease was primarily driven by ongoing efforts to reduce hourly labor costs, and reduced turnover.

Other Operating

Sixteen Weeks Ended(In thousands, except percentages)April 20, 2025April 21, 2024Percent ChangeOther operating$67,532 $66,490 1.6 %As a percent of restaurant revenue17.5 %17.6 %(0.1)%

Other operating costs include costs such as repair and maintenance costs, restaurant supplies, utilities, restaurant technology, and other miscellaneous costs. For the first quarter of fiscal 2025, other operating costs as a percentage of restaurant revenue decreased 10 basis points compared to the same period in fiscal 2024. 

Occup