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

Red Robin Gourmet Burgers (NASDAQ:RRGB) issued 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.

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

Shares of RRGB traded down $0.09 on Wednesday, reaching $3.63. 678,787 shares of the stock traded hands, compared to its average volume of 163,267. The stock’s 50-day moving average price is $3.91 and its 200-day moving average price is $5.07. The firm has a market cap of $65.19 million, a price-to-earnings ratio of -1.12 and a beta of 2.32. Red Robin Gourmet Burgers has a 12 month low of $2.50 and a 12 month high of $7.89.

Institutional Trading of Red Robin Gourmet Burgers

Several institutional investors have recently made changes to their positions in the business. BNP Paribas Financial Markets raised its position in Red Robin Gourmet Burgers by 503.0% in the second quarter. BNP Paribas Financial Markets now owns 5,379 shares of the restaurant operator’s stock worth $31,000 after purchasing an additional 4,487 shares in the last quarter. Osaic Holdings Inc. grew its stake in shares of Red Robin Gourmet Burgers by 152.6% in the 2nd quarter. Osaic Holdings Inc. now owns 10,055 shares of the restaurant operator’s stock valued at $58,000 after purchasing an additional 6,075 shares during the period. Sherbrooke Park Advisers LLC acquired a new position in shares of Red Robin Gourmet Burgers in the 3rd quarter worth approximately $70,000. Jain Global LLC bought a new position in shares of Red Robin Gourmet Burgers during the 4th quarter worth approximately $47,000. Finally, Occudo Quantitative Strategies LP acquired a new stake in Red Robin Gourmet Burgers in the 2nd quarter valued at $76,000. 84.04% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on RRGB shares. Zacks Research downgraded Red Robin Gourmet Burgers from a “strong-buy” rating to a “hold” rating in a research note on Thursday, November 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Robin Gourmet Burgers in a report on Thursday, January 22nd. Benchmark restated a “buy” rating on shares of Red Robin Gourmet Burgers in a research note on Monday, November 17th. Finally, Jefferies Financial Group raised shares of 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 report on Monday, December 15th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus 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.