1171759--2/28/2008--RED_ROBIN_GOURMET_BURGERS

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{cost, contract, operation}

{competitive, industry, competition}

{cost, operation, labor}

{financial, litigation, operation}

{product, market, service}

{cost, regulation, environmental}

{condition, economic, financial}

{acquisition, growth, future}

{property, intellectual, protect}

{debt, indebtedness, cash}

{operation, natural, condition}

{stock, price, operating}

Risks Related to Our Business Our ability to open and profitably operate new restaurants in order to expand our restaurant base is subject to factors beyond our control. New or less mature restaurants, once opened, may vary in profitability and levels of operating revenue for three years or more. A greater concentration of less mature restaurants in our comparable restaurant base and a larger percentage of operating weeks from new restaurants will impact profitability. 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. Our continuing focus on restaurant expansion through further penetrating existing markets could cause sales in some of our existing restaurants to decline. 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 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. Our initiative to address normalizing new restaurant operations may not continue to have a positive impact on our new restaurant operations. The expansion of our national advertising campaign may not produce expected results or be effective. Our existing systems and procedures may be inadequate to support our growth plans. Our operations are susceptible to the changes in cost and availability of food which could adversely affect our operating results. Our operating results may fluctuate significantly due to unexpected circumstances, increases in costs, seasonality and other factors. Price increases may impact guest visits. Approximately 56% 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. Labor shortages could slow our growth or harm our business. Changes in consumer preferences 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 our restaurants, or in discretionary consumer spending could negatively affect our restaurant sales. 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. 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 Our stock price may be volatile.

Full 10-K form ▸

1171759--2/28/2008--RED_ROBIN_GOURMET_BURGERS_INC