1171759--2/25/2010--RED_ROBIN_GOURMET_BURGERS

related topics

{cost, contract, operation}

{condition, economic, financial}

{competitive, industry, competition}

{financial, litigation, operation}

{product, market, service}

{cost, regulation, environmental}

{acquisition, growth, future}

{system, service, information}

{property, intellectual, protect}

{operation, natural, condition}

{debt, indebtedness, cash}

Risks Related to Our Business Existing economic conditions and high unemployment have negatively affected consumer spending and adversely impacted our revenues and our results of operations and may continue to do so in the future. Our operating results may fluctuate significantly due to various risks and unexpected circumstances, increases in costs, seasonality, weather, and other factors outside our control. The change in our national advertising campaign tactic to return to cable television in 2010 may be insufficient to generate increased sales or otherwise meet expectations. Decreased cash flow from operations may result in a deceleration in the number of our new restaurant openings and adversely affect our ability to utilize or comply with the terms of our credit facility. Our success depends on our ability to compete effectively in the restaurant industry. Changes in consumer preferences could negatively impact our results of operations. Approximately 50% 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. Expanding our restaurant base is critical to our long-term success, and our ability to open and profitably operate new restaurants is subject to factors beyond our control. Our expansion into new markets may present increased risks due to lack of guest familiarity with our brand in new areas and our lack of familiarity with the new market. Expansion into new geographic markets negatively impacts our ability to leverage costs, inventory, resources, and operating efficiencies for new restaurants because of the limited number of new restaurants initially. New or less mature restaurants, once opened, may vary in profitability and levels of operating revenue for nine months or more. Our continuing focus on restaurant expansion through further penetrating existing markets could cause sales in some of our existing restaurants to decline. 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. 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. The acquisition of existing restaurants from our franchisees may have unanticipated consequences that could harm our business and financial condition. Our existing systems and procedures may be inadequate to support our growth plans. We are dependent on information technology and any material failure of that technology could impair our ability to efficiently operate our business. Our operations are susceptible to the changes in cost and availability of food which could adversely affect our operating results. Price increases may negatively impact guest visits. Our franchisees could take actions that could harm our business. Our future success depends on our ability to protect our intellectual property. 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. Legislative or regulatory initiatives related to global warming/climate change concerns may negatively impact our business. A significant increase in litigation could have a material adverse effect on our results of operations, financial condition and business prospects.

Full 10-K form ▸

1171759--2/25/2010--RED_ROBIN_GOURMET_BURGERS_INC