RED ROBIN GOURMET BURGERS INCRRGB

RED ROBIN GOURMET BURGERS INC Revenue Disclosure

10-KFiled Feb 25, 20262 min read
3. Revenue
Disaggregation of Revenue
In the following table, revenue is disaggregated by type of good or service (in thousands):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Restaurant revenue$1,189,780 $1,224,254 $1,274,294 
Franchise revenue14,076 14,941 15,867 
Gift card breakage5,243 7,930 9,874 
Other revenue1,126 1,435 3,011 
Total revenues$1,210,225 $1,248,560 $1,303,046 
Contract Liabilities
Components of unearned revenue in the Consolidated Balance Sheets are as follows (in thousands):
December 28, 2025December 29, 2024
Unearned gift card revenue$24,096 $24,333 
Unearned Royalty revenue
3,191 2,750 
Unearned revenue$27,287 $27,083 
Revenue recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the redemption and breakage of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands):
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Gift card revenue$13,070 $16,782 $19,224 
We recognize revenue from our customer loyalty program, Red Robin Royalty ("Royalty"), within restaurant revenue in the Consolidated Statements of Operations and Comprehensive Income (Loss) when a customer redeems an earned reward. Unearned revenue associated with our Royalty program is included in unearned revenue in our Consolidated Balance Sheets.

Changes in our unearned revenue balance related to our Royalty program (in thousands):
Year Ended
December 28, 2025December 29, 2024
Unearned Royalty revenue, beginning balance
$2,750 $7,509 
Revenue deferred5,352 4,817 
Revenue recognized(1)
(4,911)(9,576)
Unearned Royalty revenue, ending balance$3,191 $2,750 
(1) Restaurant revenue recognized during the fifty-two weeks ended December 29, 2024 included a credit of approximately $6.4 million related to the transition to the new Royalty program in the second quarter of fiscal 2024, primarily due to the cancellation of unused points that were earned more than 365 days prior to the launch of the new program.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Feb 28, 2023

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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