1171759--2/23/2006--RED_ROBIN_GOURMET_BURGERS

related topics

{financial, litigation, operation}

{cost, contract, operation}

{competitive, industry, competition}

{condition, economic, financial}

{cost, regulation, environmental}

{regulation, change, law}

{control, financial, internal}

{acquisition, growth, future}

{interest, director, officer}

{cost, operation, labor}

{personnel, key, retain}

{property, intellectual, protect}

{debt, indebtedness, cash}

{operation, natural, condition}

{stock, price, operating}

Risks related to our business Our ability to open and operate new restaurants in order to expand our restaurant base is subject to factors beyond our control. Our focus on restaurant expansion primarily through further penetrating existing markets, could cause sales in some of our existing restaurants to decline. Our expansion into new markets may present increased risks due to our unfamiliarity with the area. New restaurants, once opened, may not be profitable, if at all, for several months. Our existing systems and procedures may be inadequate to support our growth plans. The acquisition of existing restaurants from our franchisees may have unanticipated consequences that could harm our business and financial condition. Our ability to utilize our revolving credit agreement and our ability to raise capital in the future may be limited, which could adversely impact our business. Approximately 63% of our company-owned restaurants are located in the Western United States and, as a result, we are sensitive to economic and other trends and developments in this region. Our operations are susceptible to the cost of and changes in food availability which could adversely affect our operating results. Labor shortages could slow our growth or harm our business. Price increases may impact guest visits Our operating results may fluctuate significantly due to unexpected circumstances, increases in costs, seasonality and other factors. Changes in consumer preferences or discretionary consumer spending could negatively impact our results of operations. A decline in visitors to any of the regional malls, lifestyle centers, big box shopping centers and entertainment centers near the locations of our restaurants could negatively affect our restaurant sales. If our franchisees cannot develop or finance new restaurants, build them on suitable sites or open them on schedule, our growth and success may be impeded. Our franchisees could take actions that could harm our business. If we lose the services of any of our key management personnel, our business could suffer. Our senior management team has a limited history of working together. Future changes in financial accounting standards may cause adverse unexpected operating results and affect our reported results of operations. Our future success depends on our ability to protect our proprietary information. Risks related to the restaurant industry Health concerns relating to the consumption of beef, chicken or other food products could affect consumer preferences and could negatively impact our results of operations. We are subject to extensive government regulation that may adversely hinder or impact our ability to govern various aspects of our business including our ability to expand and develop our restaurants. A significant increase in litigation could have a material adverse effect on our results of operations, financial condition and business prospects. Our success depends on our ability to compete effectively in the restaurant industry. Risks related to our company An unfavorable finding in the ongoing SEC investigation of the Company or either of the purported securities class action lawsuits could have a material adverse effect on us. The costs of the SEC investigation and the purported securities class action lawsuits may result in significant additional expenses. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses. Risks related to internal controls. Our stock price may be volatile.

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1171759--2/23/2006--RED_ROBIN_GOURMET_BURGERS_INC