Company: RRGB
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001171759-25-000020
Chunk: 23

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-05-29
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 non-cash or discrete items; net of income tax impacts. Other companies may define these non-GAAP measures differently, and as a result may not be directly comparable to those of other companies. Adjusted income (loss) per share-diluted and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) as reported in accordance with U.S. GAAP as a measure of performance.

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The following table summarizes Income (Loss) from Operations and Restaurant Level Operating Profit for the periods presented (dollars in thousands):

Sixteen Weeks EndedApril 20, 2025April 21, 2024Income (loss) from operations$9,061 2.3%$(2,111)(0.5)%Less:Franchise revenue 4,489 1.1%5,341 1.4%Other revenue2,053 0.5%4,632 1.2%Add:Other charges (gains), net676 0.2(3,976)(1.0)General and administrative expenses26,989 6.925,842 6.7Selling9,376 2.413,547 3.5Depreciation and amortization15,434 3.918,154 4.7Restaurant level operating profit$54,994 14.3%$41,483 11.0%Income (loss) from operations as a percentage of total revenues2.3%(0.5)%Restaurant level operating profit margin (as a percentage of restaurant revenue)14.3%11.0%

The Company believes restaurant level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant level operating efficiency and performance. The Company defines restaurant level operating profit to be income from operations less franchise revenue and other revenue, plus other charges (gains), net, pre-opening costs, selling costs, general and administrative expenses, and depreciation and amortization. The measure includes restaurant level occupancy costs that include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes costs associated with selling, general and administrative functions, and pre