Company: RRGB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001171759-25-000028
Chunk: 11

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 Unearned revenue in our Condensed Consolidated Balance Sheets. Changes in our unearned revenue balance related to our Royalty program (in thousands):Twelve Weeks EndedTwenty-Eight Weeks EndedJuly 13, 2025July 14, 2024July 13, 2025July 14, 2024Unearned Royalty revenue, beginning balance$3,604 $8,032 $2,750 $7,509 Revenue deferred1,241 715 2,866 3,039 Revenue recognized (1)(1,813)(6,943)(2,584)(8,744)Unearned Royalty revenue, ending balance$3,032 $1,804 $3,032 $1,804 (1) Restaurant revenue 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.

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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 EndedTwenty-Eight Weeks EndedJuly 13, 2025July 14, 2024July 13, 2025July 14, 2024Operating lease cost$16,985 $17,412 $40,005 $40,418 Finance lease cost:Amortization of right of use assets216 216 454 504 Interest on lease liabilities91 106 218 243 Total finance lease cost$307 $322 $672 $747 Variable lease cost4,785 4,538 10,844 10,441 Total$22,077 $22,272 $51,521 $51,606 See Note 5. Other Charges (Gains), net, for information regarding restaurant closures, lease remeasurement gains and losses, and the sale-leaseback transaction completed during the twenty-eight weeks ended July 14, 2024.

4. Earnings (Loss) Per Share

Basic earnings (loss) per share amounts are calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the