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

Red Robin Gourmet Burgers (NASDAQ:RRGB) released its quarterly earnings data on Wednesday. The restaurant operator reported ($0.41) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.13), FiscalAI reports. The business had revenue of $269.04 million during the quarter, compared to analyst estimates 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 Stock Up 3.0%

Shares of RRGB stock traded up $0.15 during mid-day trading on Friday, reaching $4.98. The company’s stock had a trading volume of 670,605 shares, compared to its average volume of 304,522. The company’s 50 day simple moving average is $3.92 and its 200-day simple moving average is $5.06. Red Robin Gourmet Burgers has a 12-month low of $2.50 and a 12-month high of $7.89. The firm has a market capitalization of $89.37 million, a PE ratio of -3.80 and a beta of 2.32.

Institutional Trading of Red Robin Gourmet Burgers

A number of hedge funds and other institutional investors have recently modified their holdings of the business. JCP Investment Management LLC grew its stake in Red Robin Gourmet Burgers by 0.6% during 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 purchasing an additional 10,567 shares in the last quarter. Vanguard Group Inc. boosted its stake in Red Robin Gourmet Burgers by 1.4% during the 3rd quarter. Vanguard Group Inc. now owns 752,809 shares of the restaurant operator’s stock valued at $5,164,000 after acquiring an additional 10,735 shares during the last quarter. Mink Brook Asset Management LLC increased its position in shares of Red Robin Gourmet Burgers by 15.4% in the 4th quarter. Mink Brook Asset Management LLC now owns 530,345 shares of the restaurant operator’s stock worth $2,148,000 after purchasing an additional 70,893 shares during the last quarter. 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 purchasing an additional 2,697 shares in the last quarter. Finally, Renaissance Technologies LLC lifted its position 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 during the last quarter. 84.04% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Jefferies Financial Group raised Red Robin Gourmet Burgers from a “hold” rating to a “buy” rating and set a $7.00 target price on the stock in a research note on Monday, December 15th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Robin Gourmet Burgers in a research report on Thursday, January 22nd. Benchmark reiterated a “buy” rating on shares of Red Robin Gourmet Burgers in a research note on Monday, November 17th. Finally, Zacks Research lowered Red Robin Gourmet Burgers from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 6th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $9.50.

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.