Chief Executive Officer Comments
Dave Pace, Red Robin's President and Chief Executive Officer said, "In mid-2025, we launched our First Choice strategic plan and saw steady improvement in our business performance throughout the balance of the year. The actions we took to improve our price-value equation, drive labor efficiency, and empower our Managing Partners helped drive a significant increase in Adjusted EBITDA year-over-year.
Importantly, we leaned into our micro-targeted marketing and our Big Yummm value platform, driving a clear inflection in traffic performance. After steadily closing our traffic gap to the casual dining industry throughout the back half of 2025, in December we outperformed the industry for the first time since the third quarter of 2024. This reinforces our belief that when we align compelling value, operational excellence, and precision marketing, we can win market share in a competitive environment."
Pace concluded, "The strategic decisions we made in 2025 under our First Choice plan positioned us to enter 2026 with greater focus and financial flexibility. We are building a more disciplined, guest-driven company with improving profitability, a strengthening balance sheet, and a clear roadmap for sustainable performance. While there is much more work ahead, we are encouraged by the trajectory of the business and expect to make further meaningful progress in 2026."
Fourth Quarter and Full Year 2025 Financial Summary:
The following table presents financial results for the fiscal fourth quarter and full year of 2025, compared to results from the same periods in 2024 ($ in millions except per share data):
Twelve Weeks Ended
Twelve Weeks Ended
Fifty-Two Weeks Ended
Fifty-Two Weeks Ended
December 28, 2025
December 29, 2024
December 28, 2025
December 29, 2024
Total revenues
$ 269.0
$ 285.2
$ 1,210.2
$ 1,248.6
Restaurant revenues
263.8
280.6
1,189.8
1,224.3
Comparable restaurant revenue, including deferred loyalty revenue(1)
(3.1) %
1.8 %
(0.7) %
(1.2) %
Comparable restaurant revenue, excluding deferred loyalty revenue(1)
(3.3) %
3.4 %
(0.3) %
(1.3) %
Income (loss) from operations
(4.0)
(33.5)
2.8
(53.1)
Income (loss) from operations as a percent of total revenues
(1.5) %
(11.8) %
0.2 %
(4.3) %
Restaurant Level Operating Profit(2)
$ 30.2
$ 32.2
$ 151.5
$ 132.6
Restaurant Level Operating Profit Margin(2)
11.4 %
11.5 %
12.7 %
10.8 %
Net income (loss)
(10.1)
(39.7)
(23.3)
(77.5)
Adjusted EBITDA(2)
$ 11.8
$ 14.4
$ 69.7
$ 45.6
Net income (loss) per share - diluted
$ (0.56)
$ (2.48)
$ (1.31)
$ (4.93)
Adjusted net income (loss) per share - diluted(2)
$ (0.41)
$ (0.86)
$ (0.64)
$ (3.01)
(1)
Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated for at least 18 months as of the beginning of the period presented.
(2)
See "Reconciliation of Non-GAAP Results to GAAP Results" for more details.
Full Year 2025 Commentary
Comparable restaurant revenue, excluding the impact of deferred loyalty revenue, decreased (0.3)%. This included a (3.8)% decrease in guest traffic, a (0.7)% decrease in menu mix and a 4.2% benefit from net menu pricing. The benefit from net menu pricing decreased steadily throughout fiscal 2025, as we intentionally took limited pricing actions during the year to improve value for our guests.
Restaurant level operating profit margin of 12.7%, a 190 basis point improvement from fiscal year 2024. This improvement was primarily driven by higher average guest check and the benefits of efficiency initiatives offsetting the impact of inflation and lower guest traffic.
Adjusted EBITDA of $69.7 million, a 53% increase from fiscal year 2024. This improvement was driven by increases in restaurant level operating profit, effective cost control of corporate expenses and reduced selling expense.
Balance Sheet and Liquidity
As of December 28, 2025, the Company had outstanding borrowings under its credit facility of $170.2 million and liquidity of approximately $56.9 million, including cash and cash equivalents and available borrowing capacity under its credit facility.
Outlook for Fiscal 2026 and Guidance Policy
The Company provides guidance on select information related to the Company's financial and operating performance, and such measures may differ from year to year. The projections are as of this date and the Company assumes no obligation to update or supplement this information.
The Company's fiscal 2026 guidance metrics are as follows:
Comparable Restaurant Revenue growth, excluding deferred loyalty revenue, of 0.5% to 1.5%;
Restaurant level operating profit of approximately 13.0%;
Adjusted EBITDA of $70 million to $73 million;
Capital expenditures of $25 million to $30 million.
Providing Income (loss) from operations and Net income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its fourth quarter and full year 2025 results, and outlook for fiscal 2026 today at 4:30 p.m. ET. The conference call can be accessed live over the phone by dialing 201-689-8560, which will be answered by an operator or by clicking Call Me. The conference call should be accessed at least 10 minutes prior to its scheduled start. A replay will be available from approximately two hours after the end of the call and can be accessed by dialing 412-317-6671; the conference ID is 13758272. The replay will be available through Wednesday, March 11, 2026.
The call will be webcast live and later archived from the Company's Investor Relations website.
Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to Guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos® pizza at select locations. It's easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering. Sign up for the royal treatment by joining Red Robin Royalty® today and enjoy Bottomless perks and delicious rewards across nearly 500 Red Robin locations in the United States and Canada, including those operating under franchise agreements. Red Robin… YUMMM®!
Forward-Looking Statements
Forward-looking statements in this press release and in today's conference call regarding the Company's future performance; our "First Choice" plan and the anticipated impacts thereof; our expectations about pricing and average check size; anticipated capital deployment initiatives; our targeted marketing strategy and ability to drive sales and traffic; our ability to build upon investments and transformational changes; our capital structure initiatives including refinancing and refranchising; our ability to gain efficiency in our labor and operations to deliver growth in profitability; changes to our restaurant portfolio; and statements under the heading "Outlook for Fiscal 2026 and Guidance Policy", including with respect to comparable restaurant revenue growth, restaurant level operating profit, capital expenditures and Adjusted EBITDA; and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as "expect," "believe," "anticipate," "intend," "plan," "project," "could," "should," "will," "outlook" or "estimate," or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to the following: that our performance for the remainder of 2026 will not be consistent with the Company's results during the first eight weeks of 2026; the effectiveness of the Company's strategic initiatives, including our "First Choice" plan, labor and service models, and operational improvement initiatives and our ability to execute on such strategic initiatives; the global and domestic economic and geopolitical environment; our ability to effectively compete in the industry and attract and retain Guests; our ability to extend or refinance our maturing indebtedness; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; our ability to service our debt and comply with the covenants in our credit facility; a privacy or security breach or a failure of our information technology systems; the effectiveness and timing of the Company's marketing and branding strategies and impact on reputation, including the loyalty program and social media platforms; changes in consumer preferences; leasing space including the location of such leases in areas of declining traffic; changes in cost and availability of commodities and the uncertain impact of tariffs or other potential disruptions in the supply chain; interruptions in the delivery of food and other products from third parties; pricing increases and labor costs; changes in consumer behavior or preference; aging technology infrastructure; our ability to successfully complete tactical refranchising initiatives and on favorable terms; maintaining and improving our existing restaurants; potential acquisitions, dispositions, or refranchising of our restaurants; our geographic concentration in the Western United States; the retention of our management team; our compensation strategy including availability of equity-based compensation for our management team; our ability to recruit, staff, train, and retain our workforce; operating conditions, including adverse weather conditions, natural disasters, pandemics, and other events affecting the regions where our restaurants are operated; actions taken by our franchisees that could harm our business or reputation; negative publicity regarding food safety or health concerns; protection of our intellectual property rights; changes in laws and regulations affecting the operation of our restaurants; volatility in our stock price; and an increase in litigation or legal claims by team members, franchisees, customers, vendors, and stockholders. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements and risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.
Comparable Restaurant Revenue
The following table presents the percentage change in comparable restaurant revenue in each quarter and the full year of fiscal 2025:
Increase (Decrease) Versus Prior Year
Sixteen Weeks Ended
April 20, 2025
Twelve Weeks Ended
July 13, 2025
Twelve Weeks Ended
October 5, 2025
Twelve Weeks Ended
December 28, 2025
Fifty-Two Weeks Ended
December 28, 2025
Guest traffic
(3.5) %
(5.5) %
(3.0) %
(3.6) %
(3.8) %
Menu price (net)
6.8 %
4.4 %
2.8 %
1.6 %
4.2 %
Menu mix
(0.1) %
(0.2) %
(1.1) %
(1.3) %
(0.7) %
Deferred loyalty revenue
(0.1) %
(1.9) %
0.1 %
0.2 %
(0.4) %
Total change in comparable restaurant revenue
3.1 %
(3.2) %
(1.2) %
(3.1) %
(0.7) %
RED ROBIN GOURMET BURGERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)
Twelve Weeks Ended
Twelve Weeks Ended
Fifty-Two Weeks Ended
Fifty-Two Weeks Ended
December 28, 2025
December 29, 2024
December 28, 2025
December 29, 2024
Revenues:
Restaurant revenue
$ 263,756
$ 280,624
$ 1,189,780
$ 1,224,254
Franchise revenue and other revenue
5,287
4,603
20,445
24,306
Total revenues
269,043
285,227
1,210,225
1,248,560
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales
65,539
67,633
283,883
292,392
Labor
97,237
109,073
437,242
479,631
Other operating
46,894
48,229
213,187
216,242
Occupancy
23,902
23,510
