Red Robin Gourmet Burgers (NASDAQ:RRGB) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Red Robin Gourmet Burgers (NASDAQ:RRGB) released its quarterly earnings data on Tuesday. The restaurant operator reported $0.13 EPS for the quarter, topping the consensus estimate of $0.12 by $0.01, FiscalAI reports. The business had revenue of $378.26 million during the quarter, compared to the consensus estimate of $273.29 million.

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

• Red Robin said Q1 showed continued business improvement, with its strongest traffic since Q1 2023 and its highest first-quarter restaurant operating margin since 2021.
• Comparable sales declined 0.6% in the quarter, as a 1.0% increase in average check was offset by a 1.6% traffic decline, though traffic improved sequentially versus Q4.
• The company’s Big YUMMM value platform is resonating with guests, mixing at about 13% to 14% of sales and helping drive incremental traffic without relying heavily on discounting.
• Restaurant-level operating margin improved 50 basis points to 14.8%, supported by labor efficiencies, with labor as a percentage of sales at a three-year first-quarter low.
• Management maintained full-year 2026 guidance, including comparable restaurant revenue growth of 0.5% to 1.5%, restaurant-level operating profit margin of about 13%, and Adjusted EBITDA of $70 million to $73 million.

Red Robin Gourmet Burgers Stock Performance

NASDAQ RRGB opened at $4.55 on Thursday. Red Robin Gourmet Burgers has a 52-week low of $2.45 and a 52-week high of $7.89. The company has a market capitalization of $82.54 million, a P/E ratio of -3.03 and a beta of 2.36. The company has a fifty day moving average of $3.51 and a 200-day moving average of $3.88.

Institutional Trading of Red Robin Gourmet Burgers

Hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP lifted its holdings in shares of Red Robin Gourmet Burgers by 27.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 21,086 shares of the restaurant operator’s stock worth $86,000 after acquiring an additional 4,563 shares during the last quarter. Sherbrooke Park Advisers LLC bought a new stake in Red Robin Gourmet Burgers in the third quarter worth $70,000. Millennium Management LLC bought a new stake in Red Robin Gourmet Burgers in the third quarter worth $152,000. BNP Paribas Financial Markets lifted its stake in Red Robin Gourmet Burgers by 139.6% in the third quarter. BNP Paribas Financial Markets now owns 12,888 shares of the restaurant operator’s stock worth $88,000 after purchasing an additional 7,509 shares during the last quarter. Finally, Occudo Quantitative Strategies LP bought a new stake in Red Robin Gourmet Burgers in the second quarter worth $76,000. 84.04% of the stock is owned by institutional investors.

Key Red Robin Gourmet Burgers News

Here are the key news stories impacting Red Robin Gourmet Burgers this week:

• Positive Sentiment: Red Robin said its new menu is driving momentum, which helped offset some of the earnings disappointment and suggests customers are responding to recent changes.
• Positive Sentiment: The company outlined full-year 2026 adjusted EBITDA of $70 million to $73 million while keeping comparable restaurant revenue guidance at 0.5% to 1.5%, signaling management still sees a path to improved profitability and stable sales.
• Neutral Sentiment: Q1 revenue of $378.26 million came in above Wall Street expectations, showing better-than-expected top-line performance even as the quarter remained challenged.
• Negative Sentiment: Adjusted EPS of $0.13 missed the consensus estimate of $0.21, highlighting ongoing pressure on earnings and restaurant-level profitability.
• Negative Sentiment: The company swung to a first-quarter loss, reinforcing investor concerns that Red Robin is still working through a difficult turnaround despite encouraging sales trends.

Analyst Upgrades and Downgrades

RRGB has been the subject of several analyst reports. Benchmark cut their price target on shares of Red Robin Gourmet Burgers from $12.00 to $8.00 and set a “buy” rating for the company in a report on Monday, April 20th. Weiss Ratings reissued a “sell (d-)” rating on shares of Red Robin Gourmet Burgers in a report on Tuesday, April 21st. Finally, Wall Street Zen downgraded shares of Red Robin Gourmet Burgers from a “hold” rating to a “sell” rating in a report on Saturday, May 16th. Two 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 stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $7.50.

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.