Red Robin Gourmet Burgers Stock

Red Robin Gourmet Burgers, Inc. (Red Robin), together with its subsidiaries, primarily operates, franchises, and develops casual dining restaurants in North America famous for serving more than two dozen craveable, high-quality burgers with Bottomless Steak Fries and sides in a fun environment welcoming to Guests of all ages.

The company operates Red Robin restaurants in 38 states and in Canadian Province, including company-owned and operated by franchisees. The company’s franchisees are independent organizations to whom the company provides certain support.

Business Strategy

The company released its North Star five-point plan designed to enhance the company's competitive positioning. The North Star five-point plan consists of the following:

Transform to an Operations Focused Restaurant Company: Empower decision making by operators at the unit level; incentivize and reward operators to drive business growth and results; and restructured support organization.

Elevate the Guest Experience: Invest in people, food quality, and the restaurant facility; new cooking platform to fully deliver on the company’s commitment of gourmet burgers; and menu refresh adding variety of both offerings and price points.

Remove Complexity: Optimize the supply chain to ensure consistent delivery of high-quality product; evaluate vendors for need and performance; and implement ongoing process to reduce costs through actions that uphold the company’s commitment to a great Guest experience.

Optimize Guest Engagement: Engage and support local communities in which the company operates; enhance the off-premises experience; and further build and engage Guests through Red Robin Royalty loyalty program.

Drive Growth in Comparable Restaurant Revenue & Unit Level Profitability: Regain credibility with the investment community; and drive performance in the existing base of restaurants, earning the right to resume new unit growth.

Restaurant Concept

The company prides itself on its Gourmet Burgers and other mainstream favorites served in a casual, playful atmosphere. The company’s menu features its signature product, a line of Gourmet Burgers made from premium quality, fresh ground beef. To complement the company’s best-selling Gourmet Burgers, the company offers an everyday-value line of Red's Tavern Double burgers, and Red Robin's Finest line made with premium toppings. The company also offers burgers made with other proteins including chicken breasts (grilled or fried), turkey patties, as well as a proprietary vegetarian patty and the Impossible plant-based burger patty. The company offers a selection of buns, including gluten free, sesame, brioche, and lettuce wraps, with a variety of toppings, including house-made sauces, crispy onion straws, sautéed mushrooms, several cheese choices, and a fried egg. All of the company’s burgers are served with its all-you-can-eat Bottomless Steak Fries or Guests may choose from other side options.

The company specializes in customizing its menu items to meet its Guests' dietary needs and preferences and has received recognition from experts in the allergen community. In addition to burgers, which accounted for 61% of food sales in 2022, Red Robin serves an array of other mainstream favorites that appeal to the company’s Guests. These items include a variety of foods like Donatos pizza, wings, salads, other entrees, and desserts. The company also offers a range of single-serve and shareable desserts, as well as the company’s milkshakes. The company’s beverages include signature alcoholic and non-alcoholic specialty drinks, cocktails, wine, and a variety of national and craft beers.

The company strives to customize the pace of the experience for the company’s Guests based on their occasion, from accommodating time-pressured meals to offering a place to relax and connect with family and friends. The company calls this the ‘gift of time.’ Red Robin also has an extraordinary approach to Guest service, and the company has cataloged thousands of stories of Red Robin Team Members who live the company’s values. Many examples can be found on the company’s website, www.redrobin.com.

Restaurant Development, Remodels, and Donatos

In 2020, Red Robin reestablished a new restaurant development program as part of its long-term growth strategy. With the transition to a new leadership team in 2022, the company has deprioritized new restaurant growth as the company focuses on other business initiatives and uses of capital.

In 2022, the company resumed its restaurant refresh and remodel program to keep the company’s restaurants relevant and well-maintained. The company is conducting a thorough review and evaluation of all completed refreshes and remodels to gather learnings and measure consumer response. When complete, the company expects this evaluation will inform the company’s go forward design criteria, investment level, and pace of refreshes and remodels.

In 2020, the company announced its partnership with Donatos, a high-quality pizza brand ‘nested’ inside of Red Robin restaurants. Through this partnership, the company’s restaurants prepare and serve Donatos branded pizzas to the company’s dine-in and off-premises Guests. As of December 25, 2022, the company introduced Donatos pizzas to restaurants. The company plans to continue implementation of Donatos to additional restaurants in 2023 and anticipates eventually operating Donatos in substantially all Red Robin restaurants.

Restaurant Franchise and Licensing Arrangements

The company’s franchisees operates restaurants in 16 states and British Columbia, Canada. The company’s two largest franchisees own restaurants located in Eastern and Central Pennsylvania, Michigan and Ohio.

Franchise Compliance Assurance

The company actively works with and monitors its franchisees' performance to help them develop and operate their restaurants in compliance with Red Robin's standards, systems, and procedures. During the restaurant development phase, the company reviews the franchisee's site selection and provides the franchisee with the company’s prototype building plans. The company provides trainers to assist the franchisee in opening the restaurant for business. The company advises the franchisee on all menu items, management training, and equipment and food purchases. The company also exchanges best operating practices with the company’s franchisees as the company strives to improve its operating systems while attaining a high level of franchisee participation.

Seasonality

The company’s business is subject to seasonal fluctuations. Sales in most of the company’s restaurants are typically higher during the summer months and winter holiday season due to factors, including the company’s retail-oriented locations and family appeal.

Trademarks

The company has a number of registered trademarks and service marks, including the Red Robin, Red Robin Gourmet Burgers, ‘YUMMM’, Red Robin Gourmet Burgers + Brews, and Red Robin Royalty and logos. The company has registered these marks, among others, with the United States Patent and Trademark Office, and the company has registered various trademarks in certain other international jurisdictions. Pursuant to the company’s licensing arrangement with Donatos, the company licenses the right to use the Donatos trademark.

In order to better protect the company’s brand, the company has also registered the Internet domain name www.redrobin.com.

Government Regulation

The company’s collection or use of personal information about Guests or the company’s Team Members is regulated at the federal and state levels, including the California Consumer Privacy Act.

The company is also subject to certain guidelines under the Americans with Disabilities Act of 1990 and various state codes and regulations, which require restaurants and the company’s brand to provide full and equal access to persons with physical disabilities.

History

Red Robin Gourmet Burgers, Inc. was founded in 1969. Th company was incorporated in 2001.