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

Red Robin Gourmet Burgers (NASDAQ:RRGB) released its quarterly earnings results on Wednesday. The restaurant operator reported ($0.41) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by ($0.13), FiscalAI reports. The business had revenue of $269.04 million for the quarter, compared to the consensus estimate of $264.26 million.

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

• The company reported a strong profitability rebound with adjusted EBITDA of $69.7 million for 2025 (up 53% YoY) and ARLOP margin improvement of 190 basis points, with Q4 results beating expectations.
• Traffic remained a headwind—full-year traffic fell ~3.8% and Q4 traffic declined 3.6%—with comps down 3.3% in Q4 (excluding deferred loyalty revenue) and weather-related softness after January hurting early‑2026 trends.
• The $9.99 Big Yum value offer delivered a 10% dine‑in guest mix in Q4 and management launched a tiered January menu (six meal options, $9.99–$16.99) that management says is driving trial, healthy average check growth, and broader day‑part appeal.
• Operating improvements drove meaningful cost gains—labor efficiency contributed ~180 basis points to restaurant margin, total labor costs fell 250 basis points in 2025, G&A (ex‑SBC) was reduced by >$4M, and hourly turnover is at its lowest level since 2017 aided by AI tools.
• Management is advancing tactical refranchising and refinancing to strengthen the balance sheet (ATM program terminated), ended Q4 with $19.9M cash and $37M revolver capacity, and set 2026 guidance of +0.5%–1.5% comps, ~13% restaurant margin, and $70M–$73M adjusted EBITDA.

Red Robin Gourmet Burgers Price Performance

NASDAQ RRGB opened at $3.63 on Thursday. Red Robin Gourmet Burgers has a 1-year low of $2.50 and a 1-year high of $7.89. The firm has a market capitalization of $65.19 million, a P/E ratio of -1.12 and a beta of 2.32. The business’s 50-day simple moving average is $3.91 and its 200-day simple moving average is $5.07.

Institutional Investors Weigh In On Red Robin Gourmet Burgers

Institutional investors have recently bought and sold shares of the business. Bank of America Corp DE raised its stake in shares of Red Robin Gourmet Burgers by 1.5% in the 2nd quarter. Bank of America Corp DE now owns 182,565 shares of the restaurant operator’s stock valued at $1,057,000 after acquiring an additional 2,697 shares during the period. BNP Paribas Financial Markets increased its holdings in Red Robin Gourmet Burgers by 503.0% in the 2nd quarter. BNP Paribas Financial Markets now owns 5,379 shares of the restaurant operator’s stock valued at $31,000 after purchasing an additional 4,487 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Red Robin Gourmet Burgers by 27.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 21,086 shares of the restaurant operator’s stock valued at $86,000 after purchasing an additional 4,563 shares during the period. Renaissance Technologies LLC lifted its stake in shares of Red Robin Gourmet Burgers by 3.6% during the fourth quarter. Renaissance Technologies LLC now owns 172,666 shares of the restaurant operator’s stock worth $699,000 after purchasing an additional 5,923 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its stake in shares of Red Robin Gourmet Burgers by 152.6% during the second quarter. Osaic Holdings Inc. now owns 10,055 shares of the restaurant operator’s stock worth $58,000 after purchasing an additional 6,075 shares in the last quarter. 84.04% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have commented on RRGB. Zacks Research cut shares of Red Robin Gourmet Burgers from a “strong-buy” rating to a “hold” rating in a research note on Thursday, November 6th. Weiss Ratings restated a “sell (d-)” rating on shares of Red Robin Gourmet Burgers in a report on Thursday, January 22nd. Jefferies Financial Group upgraded Red Robin Gourmet Burgers from a “hold” rating to a “buy” rating and set a $7.00 target price for the company in a research note on Monday, December 15th. Finally, Benchmark reiterated a “buy” rating on shares of Red Robin Gourmet Burgers in a research report on Monday, November 17th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $9.67.

About Red Robin Gourmet Burgers

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.