Red Robin preliminary fourth-quarter revenue suffers from renewed closures related to COVID-19

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Red Robin Gourmet Burgers Inc. released preliminary fourth-quarter that showed revenue taking a hit after renewed restrictions in response to COVID-19. “We began the fourth quarter with sequential improvement in comparable restaurant revenue compared to the third quarter, however, momentum stalled due to heightened dine-in and other restrictions in 43% of company-owned restaurants including restaurants in our key states of California, Colorado, Oregon, and Washington,” said Paul J.B. Murphy III, chief executive of Red Robin. “While the near-term is likely to remain volatile because of COVID-19, we are encouraged by recent state re-openings, and we expect indoor dining to be re-opened at 39 restaurants as of January 11.” The company said comparable year-over-year revenue fell 28.9%, with comparable revenue down 15.4% to $42,509 the week ending Nov. 1 and tumbling further, down 39.5% to $35,716 by the week ending Dec.27. Company-owned restaurants with open dining rooms fared better, down 23.3% to $40,578 by the week of Dec. 27. And Red Robin found that restaurants selling Donatos pizza did better than those that weren’t. Donatos is now in 79 restaurants. There are 540 Red Robin restaurants across the U.S. and Canada, including those operating under a franchise agreement. Red Robin had $128 million in liquidity, including cash on hand and available borrowing capacity under its credit facility, as of Dec. 27. Red Robin stock has fallen 33.7% over the last year while the benchmark S&P 500 index is up 17.1% for the period.
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