- RRGB has seen heavy pressure on margins and revenues due to pandemic-related shifts to conducting business.
- Comp sales are still deep in the negatives, and average weekly sales have doubled since March, but are still over 20% lower than the year-ago quarter.
- Cash burn for Q3 is expected to increase, and accounts for nearly 25% of total liquidity available.
- A previous breach of debt covenants was satisfied with an equity offering, but future losses (both pretax and after tax) raise the chances of another violation.
For further details see:
Red Robin: Not Exactly Worth The Risk