Red Robin Gourmet Burgers (NASDAQ:RRGB) Issues Earnings Results

Key Points

• Red Robin exceeded quarterly expectations, reporting adjusted EPS of $0.12 and revenue of $277.64 million versus the $268.56 million consensus estimate.
• Operational performance improved, with same-store sales up 1.3% and restaurant-level margin rising to 14.7%. However, adjusted EBITDA fell $3.5 million year over year to $18.9 million due largely to higher marketing spending.
• The company expects approximately $96 million from three refranchising agreements, primarily for debt reduction, while maintaining its 2026 guidance; shares rose 4.2% to $8.16 after the results.

Red Robin Gourmet Burgers (NASDAQ:RRGB - Get Free Report) released its quarterly earnings data on Wednesday. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $277.64 million during the quarter, compared to the consensus estimate of $268.56 million.

Here are the key takeaways from Red Robin Gourmet Burgers' conference call:

• Same-store sales increased 1.3% in Q2, with traffic nearly flat and outperforming the industry by 40 basis points; management said traffic improved as the quarter progressed and reached positive territory in the final period.
• Restaurant-level operating margin rose 20 basis points to 14.7%, supported by labor efficiencies, cost management, and improved sales, while employee turnover and guest satisfaction remained favorable.
• Red Robin announced three refranchising agreements expected to generate approximately $96 million in gross proceeds, which management plans to use primarily for debt reduction and greater financial flexibility.
• The company maintained its 2026 guidance, including comparable sales growth of 0.5%–1.5%, restaurant-level margin of about 13%, adjusted EBITDA of $70 million–$73 million, and capital expenditures of $25 million–$30 million; management expects stronger same-store momentum in the second half as value-program mix headwinds ease.
• Adjusted EBITDA declined $3.5 million year over year to $18.9 million, primarily because marketing expenses increased $4 million as Red Robin invested behind the Big Yummm Burger Deal and personalization initiatives; refinancing also remains unfinished while existing debt comes due later this year.

Red Robin Gourmet Burgers Stock Up 4.2%

Red Robin Gourmet Burgers stock traded up $0.33 during midday trading on Wednesday, reaching $8.16. The stock had a trading volume of 444,826 shares, compared to its average volume of 340,687. Red Robin Gourmet Burgers has a 52-week low of $2.45 and a 52-week high of $8.49. The firm has a market cap of $150.96 million, a price-to-earnings ratio of -5.44 and a beta of 2.40. The company has a fifty day moving average of $6.72 and a 200 day moving average of $4.81.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on RRGB. Benchmark restated a "buy" rating on shares of Red Robin Gourmet Burgers in a research report on Wednesday, June 3rd. Wall Street Zen raised shares of Red Robin Gourmet Burgers from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Weiss Ratings restated a "sell (d-)" rating on shares of Red Robin Gourmet Burgers in a research report on Friday, July 17th. Finally, UBS Group set a $8.00 price objective on Red Robin Gourmet Burgers in a research note on Wednesday, June 3rd. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Red Robin Gourmet Burgers presently has an average rating of "Hold" and an average price target of $7.67.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. JCP Investment Management LLC raised its holdings in shares of Red Robin Gourmet Burgers by 0.6% in the fourth quarter. JCP Investment Management LLC now owns 1,871,235 shares of the restaurant operator's stock worth $7,579,000 after buying an additional 10,567 shares during the period. Jain Global LLC purchased a new position in Red Robin Gourmet Burgers during the 4th quarter valued at $47,000. Squarepoint Ops LLC bought a new position in Red Robin Gourmet Burgers in the 4th quarter valued at $71,000. Panagora Asset Management Inc. bought a new position in Red Robin Gourmet Burgers in the 4th quarter valued at $65,000. Finally, Barclays PLC increased its stake in Red Robin Gourmet Burgers by 469.5% in the fourth quarter. Barclays PLC now owns 17,159 shares of the restaurant operator's stock worth $69,000 after purchasing an additional 14,146 shares during the period. Institutional investors own 84.04% of the company's stock.

Red Robin Gourmet Burgers Company Profile

Red Robin Gourmet Burgers, Inc, trading on NASDAQ under the ticker RRGB, is a leading casual dining restaurant company headquartered in Greenwood Village, Colorado. The company specializes in offering a diverse menu centered on gourmet burgers, bottomless steak fries, salads, sandwiches and a selection of alcoholic beverages. Red Robin operates restaurants under its flagship Red Robin® brand, serving guests through both dine-in and off-premises channels, including delivery and carry-out. The company also leverages technology and loyalty programs to enhance the guest experience and drive repeat visits.

Founded in 1969 in Seattle, Washington, Red Robin began as a small tavern before evolving into a family-friendly restaurant concept focused on premium burgers.

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