8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 23, 2019

RED ROBIN GOURMET BURGERS, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-34851	84-1573084
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6312 S. Fiddler’s Green Circle, Suite 200N Greenwood Village, Colorado	80111
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (303) 846-6000

Not Applicable

(Former name or former address, if changed since last report.)

 ___________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	RRGB	NASDAQ (Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

1

ITEM 2.02 Results of Operations and Financial Condition

On August 23, 2019, Red Robin Gourmet Burgers, Inc. issued a press release describing selected financial results for the second fiscal quarter ended July 14, 2019. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. A copy of the supplemental financial information for the second fiscal quarter ended July 14, 2019, that will be referred to during today’s investor conference call and webcast is being furnished as Exhibit 99.2 to this Form 8-K.

The information in this Item 2.02, including the information set forth in Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01 Financial Statements and Exhibits

(d)    Exhibits

Exhibit No.	Description
99.1	Red Robin Gourmet Burgers, Inc. Press Release dated August 23, 2019.
99.2	Supplemental Financial Information dated August 23, 2019 provided by Red Robin Gourmet Burgers, Inc.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RED ROBIN GOURMET BURGERS, INC.

Date: August 23, 2019

By:	/s/ Lynn S. Schweinfurth
Name:	Lynn S. Schweinfurth
Title:	Executive Vice President and Chief Financial Officer

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Red Robin Gourmet Burgers, Inc. Press Release dated August 23, 2019.
99.2	Supplemental Financial Information dated August 23, 2019 provided by Red Robin Gourmet Burgers, Inc.

4

EX-99.1

Exhibit 99.1

Red Robin Gourmet Burgers Reports Results for the Fiscal Second Quarter Ended July 14, 2019

Greenwood Village, CO – August 23, 2019 – Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or the “Company”), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter ended July 14, 2019.

Second Quarter 2019 Financial Highlights Compared to Second Quarter 2018

• GAAP earnings per diluted share were $0.08 compared to a $0.14 loss per diluted share;

• Adjusted earnings per diluted share were $1.03 compared to $0.46 (see Schedule I);

• Net Income was $1.0 million compared to a net loss of $1.9 million;

• Adjusted EBITDA was $25.5 million compared to $28.8 million (see Schedule III);

• Total revenues were $308.0 million, a decrease of 2.3%;

• Off-premise sales increased 25.7% and comprised 12.5% of total food and beverage sales, including catering;

• Comparable restaurant revenue decreased 1.5% (using constant currency rates); and

• Comparable restaurant guest counts decreased 6.4%.

Pattye Moore, board chair and interim chief executive officer of Red Robin, said, “We are making important progress on the execution of the five pillars in our strategic plan, designed to restore Red Robin’s growth and improve profitability, and believe we have reached an inflection point in our transformation. This was underscored during the second quarter by achieving our strongest comparable restaurant revenue result in five quarters, including a sequential improvement from the first quarter. Importantly, we are encouraged to see early signs of our recent sales momentum continuing, which reflect our ongoing improvements in operating and guest satisfaction metrics, as well as the new omni-channel advertising campaign that launched July 15th.”

Ms. Moore continued, “While there is still considerable work to do, our improving metrics, growing off-premise and catering channels, and traction in implementing technology solutions highlight what we have already accomplished in stabilizing the business and laying the foundation for long-term success. Additionally, the entire Red Robin Board, including our three new independent Directors announced earlier this month, remains committed to creating value for our shareholders.”

Fiscal Period Eight Comparable Restaurant Revenue

For the four-week period ended August 11, 2019, representing the Company’s fiscal period eight, comparable restaurant revenue improved to (0.1%), reflecting the continued momentum in the business.

Second Quarter 2019 Operating Results

Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, decreased 2.3% to $308.0 million in the second quarter of 2019, from $315.4 million in the second quarter of 2018. Restaurant revenue decreased $8.0 million due to a $4.4 million, or 1.5%, decrease in comparable restaurant revenue, and a $4.2 million decrease from closed restaurants, partially offset by a $0.6 million increase in revenue from late 2018 new restaurant openings.

System-wide restaurant revenue (which includes franchised units) for the second quarter of 2019 totaled $366.4 million, compared to $374.7 million for the second quarter of 2018.

Comparable restaurant revenue⁽¹⁾ decreased 1.5% in the second quarter of 2019 compared to the same period a year ago, driven by a 6.4% decrease in guest counts and offset by a 4.9% increase in average guest check. The increase in average guest check comprised a 2.3% increase in menu mix and a 2.6% increase in pricing. The increase in menu mix was primarily driven by the Company’s current menu and promotional strategy, resulting in lower Tavern burger sales and higher Finest burger and entrée sales.

Net income was $1.0 million for the second quarter of 2019 compared to a net loss of $1.9 million for the same period a year ago. Adjusted net income was $13.4 million for the second quarter of 2019 compared to $6.0 million for the same period a year ago (see Schedule I).

Restaurant-level operating profit margin (a non-GAAP financial measure) was 18.2% in the second quarter of 2019 compared to 19.3% in the same period a year ago. Cost of sales as a percentage of restaurant revenue decreased 20 basis points primarily due to a reduction in waste and lower Tavern mix. Restaurant labor costs as a percentage of restaurant revenue increased 90 basis points due to higher average wage rates and sales deleverage. Other restaurant operating costs increased 50 basis points primarily due to a 60 basis point increase in third-party delivery fees, offset by a 10 basis point decrease in supplies. Occupancy costs decreased 10 basis points due to restaurant closures. Schedule II of this earnings release defines restaurant-level operating profit, discusses why it is a useful metric for investors, and reconciles this metric to income from operations and net income, in each case under GAAP.

________________________________________

(1) Comparable restaurants are those Company-owned restaurants that have operated five full quarters during the period presented, and such restaurants are only included in the comparable metrics if they are comparable for the entirety of both periods presented.

Restaurant Revenue Performance

	Q2 2019		Q2 2018
Average weekly sales per unit(1):
Company-owned – Total	$	52,907	$	53,266
Company-owned – Comparable	$	53,304	$	54,065
Franchised units – Comparable	$	59,818	$	61,558
Total operating weeks:
Company-owned units	5,716		5,827
Franchised units	1,075		1,052

________________________________________

(1) Calculated using constant currency rates. Using historical currency rates, the average weekly sales per unit in the second quarter of 2018 for Company-owned – Total and Company-owned – Comparable was $53,268 and $54,067. The Company calculates non-GAAP constant currency average weekly sales per unit by translating prior year local currency average weekly sales per unit to U.S. dollars based on current quarter average exchange rates. The Company considers non-GAAP constant currency average weekly sales per unit to be a useful metric to investors and management as they facilitate a more useful comparison of current performance to historical performance.

Other Results

Depreciation and amortization costs decreased to $21.4 million in the second quarter of 2019 from $22.3 million in the second quarter of 2018.

General and administrative costs were $21.8 million, or 7.1% of total revenues, in the second quarter of 2019, compared to $20.4 million, or 6.5% of total revenues, in the same period a year ago. The increase was primarily driven by professional and legal fees.

Selling expenses were $13.4 million, or 4.4% of total revenues, in the second quarter of 2019, compared to $15.2 million, or 4.8% of total revenues, during the same period a year ago. The increase was primarily driven by a decrease in media spend.

Other charges in the second quarter of 2019 included $14.1 million of asset impairments, $1.2 million of board and shareholder matter costs, $1.0 million in costs related to restaurants that were previously closed, $0.4 million in executive transition and severance, and $0.3 million in executive retention.

The Company had an effective tax benefit of 106.5% in the second quarter of 2019, compared to an effective tax benefit of 71.6% during the same period a year ago. The change in the effective tax benefit is primarily due to the decrease in income in the second quarter of 2019 compared to the same period a year ago. The Company currently anticipates full year cash tax payments of between $3.5 million and $5 million.

Earnings per diluted share for the second quarter of 2019 were $0.08 compared to losses per diluted share of $0.14 in the second quarter of 2018. Excluding charges of $0.80 for impairment expenses, $0.07 for board and shareholder matter costs, $0.05 for restaurant closure costs, $0.02 for executive transition and severance, and $0.01 for executive retention, adjusted earnings per diluted share for the second quarter ended July 14, 2019 were $1.03. Excluding charges of $0.54 for asset impairment, $0.03 for spiral menu disposal, and $0.03 for reorganization costs, adjusted earnings per diluted share for the second quarter ended July 15, 2018 were $0.46. See Schedule I for a reconciliation of adjusted net income and adjusted earnings per share (each, a non-GAAP financial measure) to net income and earnings per share.

Restaurant Portfolio

During the second quarter of 2019, one franchised Red Robin restaurant opened. One additional Red Robin franchised restaurant is expected to open later in 2019.

Separately, the Company closed 10 restaurants in connection with its previously announced real estate portfolio reassessment. Seven of these restaurants were in enclosed mall locations. As a result of these closures, the Company recognized non-cash impairment charges of $1.1 million during the second quarter of 2019. These restaurants had combined year to date sales of $6.1 million, and pre-tax operating losses of $1.7 million. Year to date depreciation expense for these locations in 2019 was immaterial.

The following table details restaurant unit data for Company-owned and franchised locations for the periods indicated:

	Twelve Weeks Ended		Twelve Weeks Ended		Twenty-Eight Weeks Ended		Twenty-Eight Weeks Ended
	July 14, 2019		July 15, 2018		July 14, 2019		July 15, 2018
Company-owned:
Beginning of period	483		484		484		480
Opened during the period	—		2		—		6
Closed during the period(1)	(11	)	(2	)	(12	)	(2	)
End of period	472		484		472		484
Franchised:
Beginning of period	89		87		89		86
Opened during the period	1		1		1		2
End of period	90		88		90		88
Total number of restaurants	562		572		562		572

_________________________________________________________

(1) Restaurants closed during the twelve weeks ended July 14, 2019 include the permanent closure of ten restaurants and the temporary closure of one restaurant. Restaurants closed during the twenty-eight weeks ended July 14, 2019 include the permanent closure of eleven restaurants, and the temporary closure of one restaurant. Restaurants closed in the twelve and twenty-eight week periods ended July 15, 2018 consisted entirely of permanently closed restaurants.

Balance Sheet and Liquidity

As of July 14, 2019, the Company had cash and cash equivalents of $26.2 million and total debt of $181.4 million. The Company funded capital expenditures with cash flow from operations and made net repayments of $2.0 million on its credit facility during the second quarter of 2019. As of July 14, 2019, the Company had outstanding borrowings under its credit facility of $180.5 million, in addition to amounts issued under letters of credit of $7.4 million, which reduce the amount available under its credit facility but are not recorded as debt.

The Company’s lease adjusted leverage ratio was 4.30x as of July 14, 2019. The lease adjusted leverage ratio is defined in Section 1.1 of the Company’s credit facility, which is filed as Exhibit 10.32 to the Annual Report on Form 10-K filed on February 21, 2017. On August 19, 2019, the Company entered into a second amendment to its credit facility to increase the lease adjusted leverage ratio to 5.0x through December 29, 2019 (see Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q to be filed on August 23, 2019).

Outlook for 2019

Red Robin’s updated 2019 annual outlook remains the same for comparable restaurant revenue, adjusted EBITDA and capital expenditures. Selling, general and administrative costs, net income and adjusted diluted earnings per share have been updated to reflect current estimates including year-to-date other charges and the Company’s current estimated annual tax benefit. Current 2019 guidance is as follows:

• Comparable restaurant revenue of down 1.0% to up 1.0% (using constant currency rates);

• Selling, general and administrative costs of $154 million to $157 million;

• Net (loss) income of $(2.2) million to $4.2 million;

• Adjusted EBITDA, a non-GAAP measure, of $107 million to $117 million;

• Adjusted diluted earnings per share, a non-GAAP measure, of $0.95 to $1.50, which includes the impact of an estimated tax benefit of $0.45 to $0.65; and

• Capital expenditures of $45 million to $55 million.

Guidance Policy

The Company provides guidance as it relates to selected information related to the Company’s financial and operating performance, and such measures may differ from year to year.

Investor Conference Call and Webcast

Red Robin will host an investor conference call to discuss its second quarter 2019 results today at 8:30 a.m. ET. The conference call number is (201) 689-8560. The financial information that the Company intends to discuss during the conference call is included in this press release and will be available in the “Company” section of the Company’s website at www.redrobin.com by selecting the “Investor Relations” link, then the “Calendar of Events” link. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.

To access the supplemental financial information and webcast, please visit www.redrobin.com and select the “Company” section, then the “Investor Relations” link, then the “Presentations” link. A replay of the live conference call will be available from two hours after the call until midnight on Friday, August 30, 2019. The replay can be accessed by dialing (412) 317-6671. The conference ID is 13693391.

About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)

Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name Red Robin Gourmet Burgers and Brews, is the Gourmet Burger Authority^™, famous for serving more than two dozen craveable, high-quality burgers with Bottomless Steak Fries^® in a fun environment welcoming to Guests of all ages. Whether a family dining with kids, adults grabbing a drink at the bar, or teens enjoying a meal, Red Robin offers an unparalleled experience for its Guests. In addition to its many burger offerings, Red Robin serves a wide variety of salads, soups, appetizers, entrees, desserts, and signature beverages. Red Robin offers a variety of options behind the bar, including its extensive selection of local and regional beers, and innovative adult beer shakes and cocktails, earning the restaurant a VIBE Vista Award for Best Beer Program in a Multi-Unit Chain Restaurant. There are more than 560 Red Robin restaurants across the United States and Canada, including locations operating under franchise agreements. Red Robin… YUMMM^®! Connect with Red Robin onFacebook, Instagram, and Twitter.

Forward-Looking Statements

Forward-looking statements in this press release regarding the Company’s future performance, comparable restaurant revenue, selling, general and administrative costs, net income, EBITDA, earnings per share, franchisee restaurant openings, capital expenditures, taxes, and statements under the heading “Outlook for 2019”, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as “expect,” “believe,” “anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the effectiveness of the Company’s strategic initiatives, including management’s focus on a narrower range of key initiatives, the effectiveness of the Company’s affordability, service, and operational improvement initiatives to drive dine-in traffic and sales; the ability to increase labor productivity through alternative labor models, and to staff and train the Company’s workforce for service execution, including the complexities related to growth of multiple revenue streams within a single restaurant location; the effectiveness of the Company’s marketing strategies and promotions to sustain and grow comparable restaurant sales; the cost and availability of key food products, labor, and energy; the ability to achieve anticipated revenue and cost savings from anticipated new technology solutions in the restaurants and timing of rollout; the ability to increase online ordering, to-go services, catering, and other off-premise sales; costs associated with increased third-party delivery services; the success of the Company’s re-franchising efforts; the ability to achieve savings to the Company’s general and administrative expenses, which, by their nature, tend to be fixed costs; the Company’s ability to repurchase shares at all or at the times or in the amounts we currently anticipate or to achieve anticipated benefits of a share repurchase program; the impact of the Company’s recent adoption of a shareholder rights plan; availability of capital or credit facility borrowings to fund the Company’s capital expenditures; the adequacy of cash flows or available debt resources to fund operations and growth opportunities; the impact of federal, state, and local regulation of the Company’s business; and other risk factors described from time to time in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.

For media relations questions contact:

Katelyn Kwiatkowski, Coyne PR

(973) 588-2000

For investor relations questions contact:

Raphael Gross, ICR

(203) 682-8253

RED ROBIN GOURMET BURGERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Twelve Weeks Ended			Twelve Weeks Ended			Twenty-Eight Weeks Ended			Twenty-Eight Weeks Ended
	July 14, 2019			July 15, 2018			July 14, 2019			July 15, 2018
Revenues:
Restaurant revenue	$	302,418		$	310,392		$	702,902		$	725,094
Franchise and other revenue	5,563			4,996			14,945			11,813
Total revenues	307,981			315,388			717,847			736,907
Costs and expenses:
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales	72,387			74,874			166,102			173,389
Labor	106,538			106,476			249,432			249,491
Other operating	43,000			42,668			98,565			97,693
Occupancy	25,458			26,460			60,478			61,470
Depreciation and amortization	21,369			22,323			49,807			51,516
General and administrative	21,791			20,408			51,881			48,996
Selling	13,443			15,209			31,469			32,939
Pre-opening costs	—			569			319			1,706
Other charges	16,847			10,615			19,245			16,902
Total costs and expenses	320,833			319,602			727,298			734,102
(Loss) income from operations	(12,852		)	(4,214		)	(9,451		)	2,805
Other expense:
Interest expense, net and other	2,153			2,385			5,391			5,792
Loss before income taxes	(15,005		)	(6,599		)	(14,842		)	(2,987		)
Income tax benefit	(15,986		)	(4,725		)	(16,462		)	(5,493		)
Net income (loss)	$	981		$	(1,874	)	$	1,620		$	2,506
Earnings (loss) per share:
Basic	$	0.08		$	(0.14	)	$	0.12		$	0.19
Diluted	$	0.08		$	(0.14	)	$	0.12		$	0.19
Weighted average shares outstanding:
Basic	12,970			12,982			12,969			12,979
Diluted	13,043			12,982			13,047			13,080

RED ROBIN GOURMET BURGERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

	(Unaudited) July 14, 2019			December 30, 2018
Assets:
Current Assets:
Cash and cash equivalents	$	26,194		$	18,569
Accounts receivable, net	12,978			25,034
Inventories	27,428			27,370
Prepaid expenses and other current assets	15,005			27,576
Total current assets	81,605			98,549
Property and equipment, net	527,789			565,142
Right of use assets, net	448,352			—
Goodwill	96,453			95,838
Intangible assets, net	32,071			34,609
Other assets, net	73,665			49,803
Total assets	$	1,259,935		$	843,941
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts payable	$	32,037		$	39,024
Accrued payroll and payroll related liabilities	37,863			37,922
Unearned revenue	39,723			55,360
Short-term portion of lease obligations	42,136			786
Accrued liabilities and other	43,899			38,057
Total current liabilities	195,658			171,149
Deferred rent	—			75,675
Long-term debt	181,375			193,375
Long-term portion of lease obligations	503,030			9,414
Other non-current liabilities	10,158			11,523
Total liabilities	890,221			461,136
Stockholders’ Equity:
Common stock; $0.001 par value: 45,000 shares authorized; 17,851 and 17,851 shares issued; 12,985 and 12,971 shares outstanding	18			18
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding	—			—
Treasury stock 4,866 and 4,880 shares, at cost	(200,428		)	(201,505		)
Paid-in capital	212,059			212,752
Accumulated other loss, net of tax	(4,724		)	(4,801		)
Retained earnings	362,789			376,341
Total stockholders’ equity	369,714			382,805
Total liabilities and stockholders’ equity	$	1,259,935		$	843,941

Schedule I

Reconciliation of Non-GAAP Results to GAAP Results

(In thousands, except per share data, unaudited)

In addition to the results provided in accordance with Generally Accepted Accounting Principles (“GAAP”) throughout this press release, the Company has provided non-GAAP measurements which present the 12 and 28 weeks ended July 14, 2019 and July 15, 2018, net income and basic and diluted earnings per share, excluding the effects of executive transition and severance, board and shareholder matter costs, asset impairments, litigation contingencies, asset disposals, restaurant closure costs, reorganization costs, executive retention costs and their related income tax effects. The Company believes the presentation of net income and earnings per share exclusive of the identified item gives the reader additional insight into the ongoing operational results of the Company. This supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein. Income tax effect of reconciling items was calculated based on the change in the total tax provision calculation after adjusting for the identified item. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP.

	Twelve Weeks Ended			Twelve Weeks Ended			Twenty-Eight Weeks Ended			Twenty-Eight Weeks Ended
	July 14, 2019			July 15, 2018			July 14, 2019			July 15, 2018
Net income (loss) as reported	$	981		$	(1,874	)	$	1,620		$	2,506
Executive transition and severance	370			—			2,364			—
Board and shareholder matter costs	1,152			—			1,152			—
Asset impairment	14,064			9,643			14,064			9,643
Litigation contingencies	—			—			—			4,000
Spiral menu disposal	—			506			—			506
Restaurant closure costs	1,001			—			1,305			—
Reorganization costs	—			466			—			2,753
Executive retention	260			—			360			—
Income tax effect of reconciling items	(4,380		)	(2,777		)	(5,004		)	(4,394		)
Adjusted net income	$	13,448		$	5,964		$	15,861		$	15,014
Basic net income per share:
Net income (loss) as reported	$	0.08		$	(0.14	)	$	0.12		$	0.19
Executive transition and severance	0.03			—			0.18			—
Board and shareholder matter costs	0.09			—			0.09			—
Asset impairment	1.08			0.74			1.08			0.74
Litigation contingencies	—			—			—			0.31
Spiral menu disposal	—			0.04			—			0.04
Restaurant closure costs	0.07			—			0.10			—
Reorganization costs	—			0.04			—			0.21
Executive retention	0.02			—			0.03			—
Income tax effect of reconciling items	(0.34		)	(0.22		)	(0.38		)	(0.34		)
Adjusted earnings per share - basic	$	1.03		$	0.46		$	1.22		$	1.15
Diluted net income per share (1):
Net income (loss) as reported	$	0.08		$	(0.14	)	$	0.12		$	0.19
Executive transition and severance	0.03			—			0.18			—
Board and shareholder matter costs	0.09			—			0.09			—
Asset impairment	1.08			0.74			1.08			0.74
Litigation contingencies	—			—			—			0.31
Spiral menu disposal	—			0.04			—			0.04
Restaurant closure costs	0.07			—			0.10			—
Reorganization costs	—			0.04			—			0.21
Executive retention	0.02			—			0.03			—
Income tax effect of reconciling items	(0.34		)	(0.22		)	(0.38		)	(0.34		)
Adjusted earnings per share - diluted	$	1.03		$	0.46		$	1.22		$	1.15
Weighted average shares outstanding
Basic	12,970			12,982			12,969			12,979
Diluted(1)	13,043			13,072			13,047			13,080

________________________________________

(1) For the second quarter of 2018, the impact of dilutive shares is included in the calculations as the adjustments for the quarter resulted in adjusted net income. For diluted shares reported on the condensed consolidated statement of operations, the impact of dilutive shares is excluded due to the reported net loss for the quarter.

Schedule II

Reconciliation of Non-GAAP Restaurant-Level Operating Profit to Income

from Operations and Net Income

(In thousands, unaudited)

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 restaurant revenue minus restaurant-level operating costs, excluding restaurant impairment and closure costs. 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 related to restaurant equipment, buildings and leasehold improvements. The measure 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 selling, general, and administrative costs, and therefore excludes costs associated with selling, general, and administrative functions, and pre-opening costs. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations. Restaurant impairment costs are excluded, because, similar to depreciation and amortization, they represent a non-cash charge for the Company’s investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income from operations or net income as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies in our industry. The table below sets forth certain unaudited information for the 12 and 28 week periods ended July 14, 2019 and July 15, 2018, expressed as a percentage of total revenues, except for the components of restaurant-level operating profit that are expressed as a percentage of restaurant revenue.

	Twelve Weeks Ended					Twelve Weeks Ended					Twenty-Eight Weeks Ended					Twenty-Eight Weeks Ended
	July 14, 2019					July 15, 2018					July 14, 2019					July 15, 2018
Restaurant revenue	$	302,418		98.2	%	$	310,392		98.4	%	$	702,902		97.9	%	$	725,094		98.4	%
Restaurant operating costs (1):
Cost of sales	72,387			23.9	%	74,874			24.1	%	166,102			23.6	%	173,389			23.9	%
Labor	106,538			35.2	%	106,476			34.3	%	249,432			35.5	%	249,491			34.4	%
Other operating	43,000			14.2	%	42,668			13.7	%	98,565			14.0	%	97,693			13.5	%
Occupancy	25,458			8.4	%	26,460			8.5	%	60,478			8.6	%	61,470			8.5	%
Restaurant-level operating profit	55,035			18.2	%	59,914			19.3	%	128,325			18.3	%	143,051			19.7	%
Add – Franchise and other revenue	5,563			1.8	%	4,996			1.6	%	14,945			2.1	%	11,813			1.6	%
Deduct – other operating:
Depreciation and amortization	21,369			6.9	%	22,323			7.1	%	49,807			6.9	%	51,516			7.0	%
General and administrative expenses	21,791			7.1	%	20,408			6.5	%	51,881			7.2	%	48,996			6.6	%
Selling	13,443			4.4	%	15,209			4.8	%	31,469			4.4	%	32,939			4.5	%
Pre-opening costs	—			—	%	569			0.2	%	319			—	%	1,706			0.2	%
Other charges	16,847			5.5	%	10,615			3.4	%	19,245			2.7	%	16,902			2.3	%
Total other operating	73,450			23.8	%	69,124			21.9	%	152,721			21.3	%	152,059			20.6	%
Income from operations	(12,852		)	(4.2	)%	(4,214		)	(1.3	)%	(9,451		)	(1.3	)%	2,805			0.4	%
Interest expense, net and other	2,153			0.7	%	2,385			0.8	%	5,391			0.8	%	5,792			0.8	%
Income tax benefit	(15,986		)	(5.2	)%	(4,725		)	(1.5	)%	(16,462		)	(2.3	)%	(5,493		)	(0.7	)%
Total other	(13,833		)	(4.5	)%	(2,340		)	(0.7	)%	(11,071		)	(1.5	)%	299			0.0	%
Net income	$	981		0.3	%	$	(1,874	)	(0.6	)%	$	1,620		0.2	%	$	2,506		0.3	%

________________________________________

(1) Excluding depreciation and amortization, which is shown separately.

Certain percentage amounts in the table above do not total due to rounding as well as the fact that components of restaurant-level operating profit are expressed as a percentage of restaurant revenue and not total revenues.

Schedule III

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

(In thousands, unaudited)

The Company defines EBITDA as net income before interest expense, (benefit) for income taxes, and depreciation and amortization. EBITDA and adjusted EBITDA are presented because the Company believes investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for evaluating our ongoing results of operations without the effect of non-cash charges such as executive transition and severance, board and shareholder matter costs, asset impairments, litigation contingencies, asset disposals, restaurant closure costs, reorganization costs, executive retention costs and their related income tax effects. EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies in our industry or otherwise. Adjusted EBITDA further adjusts EBITDA to reflect the additions and eliminations shown in the table below. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items. We have not provided a reconciliation of our adjusted EBITDA outlook to the most comparable GAAP measure of net income. Providing net income guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in net income, including asset impairments and income tax valuation adjustments. The reconciliations of adjusted EBITDA to net income for the historical periods presented below are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.

	Twelve Weeks Ended			Twelve Weeks Ended			Twenty-Eight Weeks Ended			Twenty-Eight Weeks Ended
	July 14, 2019			July 15, 2018			July 14, 2019			July 15, 2018
Net income as reported	$	981		$	(1,874	)	$	1,620		$	2,506
Interest expense, net	2,322			2,458			5,667			5,735
Income tax benefit	(15,986		)	(4,725		)	(16,462		)	(5,493		)
Depreciation and amortization	21,369			22,323			49,807			51,516
EBITDA	$	8,686		$	18,182		$	40,632		$	54,264
Executive transition and severance	$	370		$	—		$	2,364		$	—
Board and shareholder matter costs	1,152			—			1,152			—
Asset impairment	14,064			9,643			14,064			9,643
Litigation contingencies	—			—			—			4,000
Spiral menu disposal	—			506			—			506
Restaurant closure costs	1,001			—			1,305			—
Reorganization costs	—			466			—			2,753
Executive retention	260			—			360			—
Adjusted EBITDA	$	25,533		$	28,797		$	59,877		$	71,166

EX-99.2

Second Quarter 2019 Results August 23, 2019 CLASSIFIED – INTERNAL USE ONLY

Forward-Looking Statements Forward-looking statements in this presentation regarding the Company’s future performance, comparable restaurant revenue, costs including selling, general and administrative, net income, EBITDA, earnings per share, tax benefit, capital expenditures, and statements under the heading “Outlook for 2019”, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as “expect,” “believe,” “anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the effectiveness of the Company’s strategic initiatives, including management’s focus on a narrower range of key initiatives; the effectiveness of the Company’s affordability, service, and operational improvement initiatives to drive dine-in traffic and sales; the ability to increase labor productivity through alternative labor models, and to staff and train the Company’s workforce for service execution, including the complexities related to growth of multiple revenue streams in the restaurant; the effectiveness of the Company’s marketing strategies and promotions to sustain and grow comparable restaurant sales; the cost and availability of key food products, labor, and energy; the ability to achieve anticipated revenue and cost savings from anticipated new technology systems and tools in the restaurants; the ability to increase online ordering, to-go services, catering, and other off-premise sales; the success of the Company’s re- franchising efforts; the ability to achieve savings to the Company’s general and administrative expenses; the Company’s ability to repurchase shares at all or at the times or in the amounts we currently anticipate or to achieve anticipated benefits of a share repurchase program; the impact of the Company’s recent adoption of a shareholder’s rights plan; anticipated tax benefits; availability of capital or credit facility borrowings to fund the Company’s capital expenditures; the adequacy of cash flows or available debt resources to fund operations and growth opportunities; the impact of federal, state, and local regulation of the Company’s business; and other risk factors described from time to time in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission. This presentation also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of the Company’s financial performance, identifying trends in results, and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the Appendix of this presentation or the Schedules to the Q1 press release posted on redrobin.com. PAGE 2

Red Robin Q2-2019 Results • Total revenues decreased 2.3% • Off-premise sales increased 25.7%, now comprising 12.5% of total food and beverage sales, including catering • Comparable restaurant revenue decreased 1.5% (using constant currency rates) – strongest result in five quarters • Comparable restaurant guest counts decreased 6.4% • Restaurant-level operating profit(1) was 18.2% compared to 19.3% in the prior year • Net income was $1.0 million • Adjusted EBITDA(1) was $25.5 million • GAAP Earnings per diluted share was $0.08 compared to a loss per diluted share of $0.14 in Q2 2018. Adjusted diluted EPS(1) were $1.03 compared to $0.46 in Q2 2018 (1) See reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures in Appendix. PAGE 3

Significant Progress on Business Improvements • Momentum in people, Guest and sales metrics • Sequential improvement in same-store sales – momentum continuing into early Q3 with comparable restaurant revenue of (0.1%) for the fiscal period eight ended August 11, 2019 • Top-quartile Red Robin restaurants generating positive Guest traffic and sales • Off-premise continues to grow – now 12.5% of total sales Red Robin team achieving gains in critical areas of focus PAGE 4

Key Strategies to Deliver Value to Shareholders Our Five 2019 Strategic Priorities: • Stabilizing the dine-in business • Improving Guest experience and recapturing Red Robin’s known-for “Gift of Time” convenience • Continue building To-Go and Catering business • Implementing digital platforms and restaurant technology solutions • Selectively refranchising and reassessing real estate portfolio PAGE 5

“All the Fulls” Omni-channel Brand Campaign • Launched in mid July with TV and radio media • Increased focus and spending on digital marketing and social activation • Encouraging fun connections with kids and parents • Already producing results, improved social media engagement – outperforming prior year PAGE 6

Operations Focus: Strengthening Dine-In Business • Hire, Train and Retain • Manager Front Of House Engagement • Managing the Shoulders to Peak the Peaks • Delivering on the Promise of Maestro – fast and accurate delivery of high quality food at proper temperature PAGE 7

Financial Update PAGE 8

Comparable Restaurant Revenue Trend(1) 5.0% 4.0% 3.0% 2.7% 2.0% 1.0% 0.5% 0.0% -0.1% -1.0% -0.9% -1.2% -2.0% -1.5% -3.0% -2.6% -3.4% -3.3% -4.0% -5.0% -4.5% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 (1) Calculated at constant currency rates PAGE 9

Q2-19 Sales Highlights Q2-19 Q2-18 Q2-19 YTD Q2-18 YTD Change Change (12 Weeks) (12 Weeks) (28 Weeks) (28 Weeks) Restaurant revenue $302.4 million $310.4 million -2.6% $702.9 million $725.1 million -3.1% Total company revenues $308.0 million $315.4 million -2.3% $717.8 million $736.9 million -2.6% Company-owned comp revenue(1)(2) -1.5% -2.6% -2.4% -1.7% Price/Mix 4.9% -1.9% 3.5% -1.5% Guest counts -6.4% -0.7% -5.9% -0.2% Franchised comp revenue(2) -2.8% 1.2% -2.2% 0.2% Company avg. weekly revenue/unit(1) –total $ 52,907 $ 53,266 -0.7% $ 52,272 $ 53,470 -2.2% Company avg. weekly revenue/unit(1)(2) –comp $ 53,304 $ 54,065 -1.4% $ 52,848 $ 54,131 -2.4% Avg. weekly restaurant level operating profit/unit(1) –comp $ 9,994 $ 10,751 -7.0% $ 9,925 $ 10,911 -9.0% Operating weeks 5,716 5,827 -1.9% 13,447 13,544 -0.7% Net Sales/ sq. ft (TTM) $433 $446 -3.0% (1) Calculated at constant currency rates (2) Comparable revenue growth is calculated by comparing the same calendar weeks. Comparable restaurants are those Company-owned restaurants that have operated five full quarters during the period presented, and such restaurants are only included in the comparable metrics if they are comparable for the entirety of both periods presented. PAGE 10

Continued Off-Premise Sales Growth US Comp Locations Off-Premise Sales as a % of Gross F&B Sales 14.0% 12.5% +290 bps 12.0% 11.6% Y-O-Y in 10.6% 10.1% Q2 2019 10.0% 9.4% 9.6% 8.3% 8.0% 7.6% 7.0% 6.3% 6.0% 4.0% 2.0% 0.0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 PAGE 11

(1)(2) Restaurant Level Operating Profit Margins 25.0% 24.0% 23.0% 22.0% 21.3% 21.0% 20.8% 20.5% 20.0% 20.0% 19.4% 19.3% 19.0% 18.6% 18.3% 18.2% 18.0% 17.0% 16.8% 16.0% Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss) (2) Prior period local marketing costs have been reclassified from Other operating to Selling to conform with the current period presentation PAGE 12

Q2-19 Restaurant Results % of Restaurant Revenue % of Restaurant Revenue Favorable Q2-19 Q2-18 (Unfavorable) Cost of sales 23.9% 24.1% 20 Labor 35.2% 34.3% (90) Other operating 14.2% 13.7% (50) Occupancy 8.4% 8.5% 10 Restaurant Level Operating Profit(1) 18.2% 19.3% (110) (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss) PAGE 13

Adjusted EBITDA(1) $50.0 $45.8 $45.0 $42.4 $40.0 $35.8 $35.0 $34.3 $32.3 $30.0 $28.8 $28.4 $25.5 $25.5 $25.0 $24.2 $20.0 $15.0 $10.0 Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss) PAGE 14

Adjusted Earnings Per Diluted Share(1) $1.20 $1.03 $1.00 $0.89 $0.80 $0.78 $0.69 $0.61 $0.60 $0.46 $0.43 $0.40 $0.19 $0.21 $0.20 $0.16 $0.00 Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share PAGE 15

Outlook for 2019 • Comparable restaurant revenue down 1.0% to up 1.0% • Selling, general and administrative costs of $154 million to $157 million • Net (loss) income of $(2.2) million to $4.2 million • Adjusted EBITDA of $107 million to $117 million • Adjusted diluted earnings per share of $.95 to $1.50, includes the impact of an estimated tax benefit of $0.45 to $0.65 • Capital expenditures of $45 million to $55 million PAGE 16

In Closing PAGE 17

Appendix PAGE 18

Adjusted Net Income(1) ($ in Millions) $16.0 $14.0 $13.5 $12.0 $11.6 $10.2 $10.0 $9.1 $7.9 $8.0 $6.0 $6.0 $5.4 $4.0 $2.4 $2.7 $2.1 $2.0 $0.0 Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss) PAGE 19

Cash Flow from Operations ($ in Millions) $80.0 $70.0 $70.0 $60.0 $57.0 $50.0 $40.0 $37.5 $34.7 $35.0 $30.0 $25.3 $20.0 $20.0 $16.4 $16.9 $11.8 $10.0 $0.0 Q1 Q2 Q3 Q4 2017 2018 2019 PAGE 20

Q2-19 Commodity Update % of Total COGS in Market vs. Contract Q2-19 Steak fries 12.9% 100% contracted through 10/19 Hamburger 12.6% Market Poultry 9.5% 60% contracted though 1/21; 40% contracted through 1/20 Produce 8.5% 70% contracted through 10/21 Meat 7.4% Market Bread 5.8% Frozen bread 100% contracted through 12/19 Cod 100% covered through 6/20 (tariffs could impact cost); shrimp Seafood 3.1% 100% covered through 12/19 Fry oil 1.7% 100% contracted through 6/20 CLASSIFIED – INTERNAL USE ONLY | PAGE 21

Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share ($ in thousands, except per share data) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) as reported 11,567 6,931 2,714 8,807 4,380 (1,874) 1,709 (10,634) 639 981 Adjustments to net income (loss): Executive transition and severance - - - - - - - - 1,994 370 Board and shareholder matter costs - - - - - - - - - 1,152 Asset impairment - 1,584 - 5,330 - 9,643 - 18,483 - 14,064 Litigation contingencies - - - - 4,000 - - 795 - - Restauarant closure costs - - - - - - - - 304 1,001 Spiral menu disposal - - - - - 506 - 2,430 - - Reorganization costs - - - - 2,287 466 521 - - - Executive retention - - - - - - - - 100 260 Income tax (expense) benefit of adj. - (618) - (1,175) (1,617) (2,777) (135) (5,644) (623) (4,380) Deferred tax liability remeasurement due to Tax Cuts and Jobs Act - - - (2,808) - - - - - - Adjusted net income 11,567 7,897 2,714 10,154 9,050 5,964 2,095 5,430 2,414 13,448 Diluted net income (loss) per share(1): Net income (loss) as reported 0.89 0.53 0.21 0.68 0.34 (0.14) 0.13 (0.82) 0.05 0.08 Adjustments to net income (loss): Executive transition and severance - - - - - - - - 0.15 0.03 Board and shareholder matter costs - - - - - - - - - 0.09 Asset impairment - 0.12 - 0.41 - 0.74 - 1.43 - 1.08 Litigation contingencies - - - - 0.30 - - 0.06 - - Restauarantclosure costs - - - - - - - - 0.03 0.07 Spiral menu disposal - - - - - 0.04 - 0.19 - - Reorganization costs - - - - 0.17 0.04 0.04 - - - Executive retention - - - - - - - - 0.01 0.02 Income tax (expense) benefit of adj. - (0.04) - (0.09) (0.12) (0.22) (0.01) (0.43) (0.05) (0.34) Deferred tax liability remeasurement due to Tax Cuts and Jobs Act - - - (0.22) - - - - - - Adjusted EPS -diluted 0.89 0.61 0.21 0.78 0.69 0.46 0.16 0.43 0.19 1.03 (1) For the second and fourth quarters of 2018, the impact of dilutive shares is included in the calculations as the adjustments for the quarter resulted in adjusted net income PAGE 22

Restaurant Level Operating Profit Reconciliation to Income from Operations and Net Income (Loss) ($ in thousands) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Restaurant revenue $ 413,451 $ 312,351 $ 301,100 $ 338,154 $ 414,702 $ 310,392 $290,218 $300,897 $400,484 $302,418 Restaurant operating costs(1): Cost of sales 94,607 73,903 71,642 80,203 98,515 74,874 69,003 71,112 93,715 72,387 Labor 145,519 108,422 106,205 115,286 143,015 106,476 102,322 104,449 142,894 106,538 (2) Other operating 52,064 40,057 41,454 44,734 55,025 42,668 43,612 40,779 55,565 43,000 Occupancy 33,119 25,140 25,868 28,626 35,010 26,460 26,629 26,047 35,020 25,458 Restaurant-level operating profit 88,142 64,828 55,932 69,309 83,137 59,914 48,652 58,510 73,290 55,035 Add – Franchise and other revenue(2) 7,178 4,959 4,599 5,770 6,817 4,996 4,659 5,882 9,382 5,563 Deduct – Other operating: Depreciation and amortization 28,044 21,173 21,258 22,070 29,193 22,323 21,819 22,036 28,438 21,369 General and administrative expenses 30,913 21,927 18,562 21,874 28,588 20,408 16,763 18,335 30,090 21,791 (2) Selling 17,050 14,361 15,152 16,818 17,730 15,209 12,017 17,408 18,026 13,443 Pre-opening and acquisition costs 1,855 1,377 1,503 835 1,137 569 387 - 319 - (2) Other charges - 1,584 - 5,330 6,287 10,615 520 21,708 2,398 16,847 Total other operating 77,862 60,422 56,475 66,927 82,935 69,124 51,506 79,487 79,271 73,450 Income (loss) from operations 17,458 9,366 4,056 8,152 7,019 (4,214) 1,805 (15,095) 3,401 (12,852) Interest expense, net and other 2,984 2,453 2,032 2,543 3,407 2,385 2,295 2,838 3,238 2,153 Income tax expense (benefit) 2,907 (18) (690) (3,198) (768) (4,725) (2,199) (7,299) (476) (15,986) Net income (loss) 11,567 6,931 2,714 8,807 4,380 (1,874) 1,709 (10,634) 639 981 (1) Excluding depreciation and amortization, which is shown separately (2) Certain amounts presented in prior periods have been reclassified to conform with the current period presentation PAGE 23

EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) ($ in thousands) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) as reported $ 11,567 $ 6,931 $ 2,714 $ 8,807 $ 4,380 $ (1,874) $ 1,709 $(10,634) $ 639 $ 981 Adjustments to net income (loss): Income tax expense (benefit) 2,907 (18) (690) (3,198) (768) (4,725) (2,199) (7,299) (476) (15,986) Interest expense, net 3,249 2,626 2,222 2,821 3,277 2,458 2,390 2,550 3,345 2,322 Depreciation and amortization 28,044 21,173 21,258 22,070 29,193 22,323 21,819 22,036 28,438 21,369 EBITDA $ 45,767 $ 30,712 $ 25,504 $ 30,500 $ 36,082 $ 18,182 $ 23,719 $ 6,653 $ 31,946 $ 8,686 Executive transition and severance - - - - - - - - 1,994 370 Board and shareholder matter costs - - - - - - - - - 1,152 Asset impairment - 1,584 - 5,330 - 9,643 - 18,483 - 14,064 Litigation contingencies - - - - 4,000 - - 795 - - Restaurant closure costs - - - - - - - - 304 1,001 Spiral menu disposal - - - - - 506 - 2,430 - - Reorganization costs - - - - 2,287 466 521 - - - Executive retention - - - - - - - - 100 260 Adjusted EBITDA 45,767 32,296 25,504 35,830 42,369 28,797 24,240 28,361 34,344 25,533 PAGE 24