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

Red Robin Gourmet Burgers (NASDAQ:RRGB) issued its earnings results on Wednesday. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $277.64 million during the quarter, compared to analyst estimates of $268.56 million.

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

• Same-store sales increased 1.3% in Q2, with traffic nearly flat and outperforming the industry by 40 basis points; management said traffic improved as the quarter progressed and reached positive territory in the final period.
• Restaurant-level operating margin rose 20 basis points to 14.7%, supported by labor efficiencies, cost management, and improved sales, while employee turnover and guest satisfaction remained favorable.
• Red Robin announced three refranchising agreements expected to generate approximately $96 million in gross proceeds, which management plans to use primarily for debt reduction and greater financial flexibility.
• The company maintained its 2026 guidance, including comparable sales growth of 0.5%–1.5%, restaurant-level margin of about 13%, adjusted EBITDA of $70 million–$73 million, and capital expenditures of $25 million–$30 million; management expects stronger same-store momentum in the second half as value-program mix headwinds ease.
• Adjusted EBITDA declined $3.5 million year over year to $18.9 million, primarily because marketing expenses increased $4 million as Red Robin invested behind the Big Yummm Burger Deal and personalization initiatives; refinancing also remains unfinished while existing debt comes due later this year.

Red Robin Gourmet Burgers Stock Up 23.8%

RRGB stock traded up $1.94 during midday trading on Thursday, reaching $10.10. The stock had a trading volume of 1,436,852 shares, compared to its average volume of 347,411. The business has a fifty day simple moving average of $6.80 and a two-hundred day simple moving average of $4.83. Red Robin Gourmet Burgers has a twelve month low of $2.45 and a twelve month high of $10.95. The firm has a market cap of $186.91 million, a price-to-earnings ratio of -6.73 and a beta of 2.40.

Wall Street Analyst Weigh In

RRGB has been the subject of several recent research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Red Robin Gourmet Burgers in a research note on Friday, July 17th. Wall Street Zen upgraded Red Robin Gourmet Burgers from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. UBS Group set a $8.00 price objective on shares of Red Robin Gourmet Burgers in a research note on Wednesday, June 3rd. Finally, Benchmark increased their price target on Red Robin Gourmet Burgers from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Thursday. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Red Robin Gourmet Burgers currently has a consensus rating of “Hold” and a consensus price target of $8.33.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in RRGB. Dimensional Fund Advisors LP lifted its stake 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 buying an additional 4,563 shares during the period. Sherbrooke Park Advisers LLC acquired a new stake in shares of Red Robin Gourmet Burgers in the 3rd quarter valued at approximately $70,000. Millennium Management LLC acquired a new position in Red Robin Gourmet Burgers during the third quarter valued at approximately $152,000. BNP Paribas Financial Markets increased 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 valued at $88,000 after purchasing an additional 7,509 shares in the last quarter. Finally, Occudo Quantitative Strategies LP bought a new position in shares of Red Robin Gourmet Burgers during the second quarter worth $76,000. Institutional investors and hedge funds own 84.04% of the company’s stock.

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.