Red Robin Gourmet Burgers (NASDAQ:RRGB) Announces Quarterly Earnings Results

Red Robin Gourmet Burgers (NASDAQ:RRGB) issued its quarterly earnings data on Wednesday. The restaurant operator reported ($0.41) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.13), FiscalAI reports.

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 Stock Performance

Shares of RRGB stock traded down $0.09 during mid-day trading on Wednesday, hitting $3.63. 678,787 shares of the stock were exchanged, compared to its average volume of 163,267. The stock’s fifty day simple moving average is $3.91 and its two-hundred day simple moving average is $5.07. Red Robin Gourmet Burgers has a 12-month low of $2.50 and a 12-month high of $7.89.

Institutional Investors Weigh In On Red Robin Gourmet Burgers

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

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on RRGB. Weiss Ratings restated a “sell (d-)” rating on shares of Red Robin Gourmet Burgers in a report on Thursday, January 22nd. Zacks Research lowered shares of Red Robin Gourmet Burgers from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 6th. Jefferies Financial Group upgraded shares of 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 reissued a “buy” rating on shares of Red Robin Gourmet Burgers in a 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 given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price 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.