What the changes say
- Red Robin is focused on refinancing its $170.2 million debt and executing tactical refranchising under the First Choice plan.
What changed since the prior 10-K
New
- NewRisks Related to Our Indebtedness and Liquidity
Our ability to extend or refinance maturing indebtedness is uncertain and could materially affect our liquidity, financial condition, and operations
We extended our debt maturities to September 3, 2027, but need long-term refinancing for $170.2 million in total borrowings.
- NewRisks Related to Our Business
Our tactical refranchising initiatives may not be completed on favorable terms or completed at all and may not result in the anticipated financial benefits
Our First Choice plan includes tactical refranchising to optimize our balance sheet, which may not succeed and could shift revenue to royalties.
- NewRisks Related to Our Business
Our ability to attract, motivate, and retain our management team and key personnel may be affected by the market price of our common stock and the availability of shares under our equity compensation plan, and we may need to provide alternative compensation incentives
Low stock prices or share limits under our 2024 Performance Incentive Plan could hinder equity compensation and require costlier cash incentives.
- NewRisks Related to Our Business
Changes in tax laws and unanticipated tax liabilities could adversely affect our financial results
Changes in tax laws, valuation of deferred tax assets, or the outcome of tax audits could adversely affect our financial results.
Dropped
- DroppedRisks Related to Our Business
We 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
- DroppedRisks Related to Our Business
Health concerns relating to the consumption of beef, chicken, or other food products could affect consumer preferences and could negatively affect our results of operations
- DroppedRisks Related to Our Business
The Company's effective tax rate could be volatile and materially change as a result of changes in tax laws
- DroppedRisks Related to Owning Our Stock
The 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
Reworded
- 94% rewrittenRisks Related to Our Business
If 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
Expanded to note recent replacements of technology hardware and the use of systems for regulatory tax and financial reporting compliance.
- 94% rewrittenRisks Related to Our Business
Our 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
Added risks that loyalty program changes and increased reliance on digital micro-targeting may reduce guest engagement and visit frequency.
- 88% rewrittenRisks Related to Our Business
If we are unable to successfully attract, retain, and motivate qualified restaurant management and operations team members in a competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance
Added potential impacts from immigration law changes decreasing the pool of hourly workers with legal work authorizations.
Was: If 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
- 85% rewrittenRisks Related to Our Business
We 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
Updated to reflect recent leadership transitions and the associated risks of strategic disruption and loss of institutional knowledge.
- 80% rewrittenRisks Related to Our Business
We are subject to the risks presented by acquisitions or dispositions of restaurants
Clarified that future acquisitions or dispositions may occur beyond the tactical refranchising initiatives.
Was: We are subject to the risks presented by acquisitions or refranchising
- 80% rewrittenRisks Related to Our Business
Our operations are susceptible to the changes in cost and availability of commodities which could negatively affect our results of operations
Added that fixed-price contracts typically cover only a portion of total commodity needs for limited time periods.
- 77% rewrittenRisks Related to Our Business
Our 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
Streamlined language regarding extensive and frequently changing government laws and regulations.
- 75% rewrittenRisks Related to Our Business
Changes 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
Added that limits on lease terminations and the availability of suitable alternative sites may restrict our ability to relocate underperforming restaurants.
- 64% rewrittenRisks Related to Our Business
Our 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
- 64% rewrittenRisks Related to Our Business
The 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
- 62% rewrittenRisks Related to Our Business
We are subject to all of the risks associated with leasing space subject to long-term non-cancelable leases, and risks related to renewal
- 57% rewrittenRisks Related to Our Business
A 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
- 46% rewrittenRisks Related to Our Business
The 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
- 45% rewrittenRisks Related to Our Business
The 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
- 36% rewrittenRisks Related to Our Indebtedness and Liquidity
If 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
- 35% rewrittenRisks Related to Our Business
Changes in consumer preferences could negatively affect our results of operations
- 31% rewrittenRisks Related to Our Business
New or improved technologies or changes in consumer behavior facilitated by these technologies could negatively affect our business
- 27% rewrittenRisks Related to Our Business
Our business could be adversely affected by increased labor costs, including costs related to the increase in minimum wage and new health care laws
- 26% rewrittenRisks Related to Our Business
Decreased 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
- 24% rewrittenRisks Related to Our Business
Food safety and food-borne illness concerns, and any related unfavorable publicity could have an adverse effect on our business
All 35 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Indebtedness and Liquidity
- 01Our ability to extend or refinance maturing indebtedness is uncertain and could materially affect our liquidity, financial condition, and operationsNew
- 02If 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 affected36% rewritten
Risks Related to Our Business
- 03Our 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 operations64% rewritten
- 04The 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 operations46% rewritten
- 05Our success depends on our ability to effectively compete in the restaurant industry to attract and retain guests
- 06Decreased 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 strategies26% rewritten
- 07A 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 condition57% rewritten
- 08If 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 strategies94% rewritten
- 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 business94% rewritten
- 10Damage to our brand image or reputation, including due to unfavorable social and digital media, could adversely impact our business
- 11Changes in consumer preferences could negatively affect our results of operations35% rewritten
- 12We are subject to all of the risks associated with leasing space subject to long-term non-cancelable leases, and risks related to renewal62% rewritten
- 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 operations75% rewritten
- 14Our operations are susceptible to the changes in cost and availability of commodities which could negatively affect our results of operations80% rewritten
- 15We may experience interruptions in the delivery of food and other products from third parties
- 16Price increases may negatively affect guest visits
- 17New or improved technologies or changes in consumer behavior facilitated by these technologies could negatively affect our business31% rewritten
- 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
- 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 investment64% rewritten
- 20Our tactical refranchising initiatives may not be completed on favorable terms or completed at all and may not result in the anticipated financial benefitsNew
- 21We are subject to the risks presented by acquisitions or dispositions of restaurants80% rewritten
- 22The large number of Company-owned restaurants concentrated in the Western United States makes us susceptible to changes in economic and other trends in that region45% rewritten
- 23We 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 results85% rewritten
- 24If we are unable to successfully attract, retain, and motivate qualified restaurant management and operations team members in a competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance88% rewritten
- 25Our ability to attract, motivate, and retain our management team and key personnel may be affected by the market price of our common stock and the availability of shares under our equity compensation plan, and we may need to provide alternative compensation incentivesNew
- 26Our franchisees could take actions that could harm our business, expose us to liability, or damage our reputation
- 27Food safety and food-borne illness concerns, and any related unfavorable publicity could have an adverse effect on our business24% rewritten
- 28Our business could be adversely affected by increased labor costs, including costs related to the increase in minimum wage and new health care laws27% rewritten
- 29Our 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 suffer77% rewritten
- 30Our future success depends on our ability to protect our intellectual property
- 31Changes in tax laws and unanticipated tax liabilities could adversely affect our financial resultsNew
- 32A significant increase in litigation could have a material adverse effect on our business, financial condition, and results of operations
- 33Labor organizing could adversely affect our operations and harm our competitive position in the restaurant industry, which could harm our financial performance
- 34Our current insurance may not provide adequate levels of coverage against claims
Risks Related to Owning Our Stock
- 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
Other Red Robin Gourmet Burgers 10-Ks
- FY2024 10-K risk factors35 risks
Red Robin's risk profile centers on executing its North Star turnaround strategy while managing high debt, heavy geographic concentration in the Western U.S., rising labor costs, and ongoing IT and data security vulnerabilities.
Filed Feb 26, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.