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ENGLEWOOD, Colo. - Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) announced today that G.J. Hart will step down as President and Chief Executive Officer, transitioning to an advisory role to support the company through September. David A. Pace, the current Chairman of the Board, will immediately succeed Hart as President and CEO. The leadership change comes as the company faces significant challenges, with InvestingPro data showing the stock trading near its 52-week low of $2.68, down nearly 59% over the past year.
In tandem with this leadership change, Board Director Anthony S. Ackil will assume the role of Chairman, with Pace continuing to serve as a member of the Board. Hart expressed confidence in Pace’s industry knowledge and the company’s direction, citing the implementation of key elements of their strategic "North Star" plan and a strong first quarter as the impetus for the transition. According to InvestingPro analysis, the company operates with a significant debt burden, with total debt reaching $585 million and a concerning debt-to-capital ratio of 0.93.
Pace, who has 35 years of experience in leadership and turnarounds within the food, beverage, and retail sectors, previously led Jamba Juice through a successful repositioning and profit tripling. Ackil, the incoming Chairman, is an entrepreneur with extensive experience in the restaurant industry, including founding and managing Streetlight Ventures.
Red Robin anticipates a first-quarter comparable restaurant sales increase of approximately 3% and expects Adjusted EBITDA to surpass the forecasted range of $18 million to $19 million. Full results for the quarter are scheduled to be reported in late May. This potential improvement comes against a backdrop of challenging financial metrics, with InvestingPro reporting a revenue decline of 4.18% over the last twelve months. For deeper insights into Red Robin’s financial health and extensive analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The company’s focus remains on reaccelerating growth and delivering sustainable value to shareholders. Pace plans to enhance marketing efforts, reinvest in facilities, and build financial strength while reducing debt to increase operating flexibility.
This leadership transition at Red Robin is based on a press release statement, and the company will continue to build on the progress made under Hart’s tenure.
In other recent news, Red Robin Gourmet Burgers Inc. reported its fourth-quarter 2024 earnings, revealing a notable shortfall in both earnings per share (EPS) and revenue. The company posted an EPS of -0.94, significantly missing the expected -0.29, while revenue came in at $258.2 million, falling short of the forecasted $285.62 million. Despite these misses, Red Robin saw a 3.4% increase in comparable restaurant revenue and a rise in adjusted EBITDA to $12.7 million, reflecting improved cost management. The company announced plans to close 10-15 underperforming restaurants in 2025 as part of its strategic initiatives. Red Robin also introduced new menu items and operational updates aimed at future growth. Looking ahead, the company has set a revenue guidance for 2025 between $1.225 billion and $1.250 billion, with expectations for modestly positive same-store sales growth. The strategic focus and financial guidance were positively received by investors, as indicated by the stock’s performance in aftermarket trading.
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