Red Robin Gourmet Burgers (RRGB) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our business strategy may not be successful or achieve the desired results, which may have an adverse impact on our business, financial condition, and results of operations
2. 02The global and domestic economic and geopolitical environment may negatively affect frequency of Guest visits and average ticket spend at our restaurants, which would negatively affect our revenues and our results of operations
3. 03Our success depends on our ability to effectively compete in the restaurant industry to attract and retain Guests
4. 04Decreased cash flow from operations, or an inability to access capital or successfully execute our potential real property sales could negatively affect our business initiatives or may result in our inability to execute our revenue, expense, and capital deployment strategies
5. 05If we are unable to service our debt or comply with the financial and other covenants in our credit facility, our financial condition could be negatively affected
6. 06A privacy or security breach involving our information technology systems, or the failure of our data security measures could interrupt our business, damage our reputation, and negatively affect our operations and financial condition
7. 07If there is a material failure in our information technology systems, our business could be negatively affected, and our systems may be inadequate to support our future growth strategies
8. 08We cannot provide assurance that the measures we take to evolve and improve our information technology systems will be sufficient to prevent future cyber-attacks, system failures, or data or information loss
9. 09Our marketing and branding strategies to attract, engage, and retain our Guests, including recent and future changes to our loyalty program, may not be successful, which could negatively affect our business
10. 10Damage to our brand image or reputation, including due to unfavorable social and digital media, could adversely impact our business
11. 11Changes in consumer preferences could negatively affect our results of operations
12. 12We are subject to all of the risks associated with leasing space subject to long-term non-cancelable leases, and risks related to renewal
13. 13Changes in consumer buying patterns, particularly due to declines in traffic near our leased locations, and increases in online sales, may affect our financial condition and results of operations
14. 14Our operations are susceptible to the changes in cost and availability of commodities which could negatively affect our results of operations
15. 15We may experience interruptions in the delivery of food and other products from third parties
16. 16Price increases may negatively affect Guest visits
17. 17New or improved technologies or changes in consumer behavior facilitated by these technologies could negatively affect our business
18. 18We may expand our restaurant base as a component of our long-term growth, and our ability to open and profitably operate new restaurants is subject to factors beyond our control
19. 19The ongoing need for maintenance and improvements at our existing restaurants requires us to spend significant capital and we may not achieve a return on investment
20. 20We are subject to the risks presented by acquisitions or refranchising
21. 21The large number of Company-owned restaurants concentrated in the Western United States makes us susceptible to changes in economic and other trends in that region
22. 22We rely on our management team for the development and execution of our business strategy and the loss of a member of our management team could negatively affect our operating results
23. 23If we are unable to successfully recruit, retain, and motivate qualified restaurant management and operations Team Members in an increasingly competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance
24. 24Our franchisees could take actions that could harm our business, expose us to liability, or damage our reputation
25. 25Food safety and food-borne illness concerns, and any related unfavorable publicity could have an adverse effect on our business
26. 26Health concerns relating to the consumption of beef, chicken, or other food products could affect consumer preferences and could negatively affect our results of operations
27. 27Our business could be adversely affected by increased labor costs, including costs related to the increase in minimum wage and new health care laws
28. 28Our failure to remain in compliance with governmental laws and regulations as they continually evolve, and the associated costs of compliance, could cause our business results to suffer
29. 29Our future success depends on our ability to protect our intellectual property
30. 30The Company's effective tax rate could be volatile and materially change as a result of changes in tax laws
31. 31A significant increase in litigation could have a material adverse effect on our business, financial condition, and results of operations
32. 32Labor organizing could adversely affect our operations and harm our competitive position in the restaurant industry, which could harm our financial performance
33. 33Our current insurance may not provide adequate levels of coverage against claims

Risks Related to Owning Our Stock

1. 34The market price of our common stock is subject to volatility, which has and may continue to attract the interest of activist stockholders or subject us to securities litigation, which could cause us to incur significant expenses, hinder execution of our strategy, and impact our stock price
2. 35We may not repurchase our common stock pursuant to our share repurchase program, and any repurchases may not enhance long-term stockholder value. Share repurchases could also increase the volatility of the price of our common stock and could diminish our cash reserves