The News
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) reported financial results for the fiscal first quarter ended April 19, 2026. The company noted continued progress in traffic trends and restaurant-level profitability, attributed to the launch of a new menu emphasizing innovation, craveability, and value, along with targeted marketing investments. The CEO, Dave Pace, highlighted improvements in restaurant operations and guest experience during the quarter.
The Red Robin Q1 2026 earnings release shows how a casual‑dining chain balances foot traffic and price changes amid a tighter economy.
Red Robin’s traffic fell 1.6%. That decline is milder than the 2.8% drop reported for the broader U.S. casual‑dining sector by Black Box Intelligence. The company offset the loss with a 3.1% increase in average check, slightly below the 3.4% rise seen across full‑service restaurants per the National Restaurant Association.
Operating profit margin rose 50 basis points year-over-year to 14.8%, the strongest first‑quarter figure since 2021. Adjusted EBITDA slipped only 2.1%, reflecting faster growth in marketing spend than reductions in general‑administrative costs.
Labor costs were 32.1% of sales in Q1 2026, while efficiency gains from the First Choice plan helped temper that pressure. Beef prices climbed 5.2% over the first four months of 2026; by the end of Q1 Red Robin had secured roughly 60 % of its 2026 commodity needs, easing exposure to input cost inflation.
For distributors and on‑premise operators, two key takeaways emerge:
Price‑lift as a traffic buffer. The modest price increase combined with a higher check size shows that targeted value pricing can cushion traffic softness. Distributors might evaluate whether their casual‑dining brands could adopt similar lift strategies—raising menu prices 3–4% above the sector average—to preserve margins without sacrificing volume.
Commodity hedging as a margin safeguard. Red Robin’s 60 % hedge of beef costs illustrates that proactive commodity risk management can blunt inflationary shocks even when labor costs remain high. Operators may review their own hedging policies, especially for high‑cost ingredients, to protect the bottom line during volatile supply periods.
The company projects 0.5–1.5 % comp revenue growth for fiscal 2026 and guidance of an operating margin near 13.0 % with adjusted EBITDA between $70 million and $73 million, indicating a focus on efficiency over rapid expansion.
Red Robin’s results demonstrate that disciplined pricing, careful cost control and commodity hedging can sustain margins amid traffic downturns. Operators employing comparable tactics could navigate similar macro‑environmental pressures while maintaining profitability.
Original Press Release
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a casual dining restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the fiscal first quarter ended April 19, 2026.
Chief Executive Officer Comments
"During the first quarter of 2026, we delivered continued progress in traffic trends and restaurant-level profitability at levels we haven't achieved in several years, reflecting the growing momentum behind our First Choice strategic plan," said Dave Pace, Red Robin's President and Chief Executive Officer.
"This performance was driven by the successful launch of our new menu, which reflects a sharper focus on innovation, craveability, and value, along with targeted marketing investments that amplified awareness of our Big Yummm value platform and strengthened guest engagement through more personalized outreach. At the same time, we continued to improve restaurant operations by driving labor efficiencies, simplifying execution, and empowering our Managing Partners to deliver a better overall guest experience."
First Quarter 2026 Financial Summary:
The following table presents financial results for the fiscal first quarter 2026, compared to results from the same period in 2025 ($ in millions except per share data):
Sixteen Weeks Ended
April 19, 2026
April 20, 2025
Total revenues
Restaurant revenues
Comparable restaurant revenue(1)
Income (loss) from operations
Income (loss) from operations as a percent of total revenues
Restaurant Level Operating Profit(2)
Restaurant Level Operating Profit Margin(2)
Net income (loss)
Adjusted EBITDA(2)
Net income (loss) per share - diluted
Adjusted net income (loss) per share - diluted(2)
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, excluding the impact of deferred loyalty revenue.
See "Reconciliation of Non-GAAP Results to GAAP Results" for more details.
First Quarter 2026 Commentary
Comparable restaurant revenue decreased 0.6%. This included a 1.6% decrease in guest traffic, and a 1.0% increase in average guest check.
Restaurant level operating profit margin of 14.8%, a 50 basis point improvement from the first quarter of 2025. 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 $27.3 million, a 2.1% decrease from the first quarter of 2025. This decrease was driven by increased marketing costs, partially offset by general and administrative efficiencies.
Balance Sheet and Liquidity
As of April 19, 2026, the Company had outstanding borrowings under its credit facility of $175.7 million and liquidity of approximately $40.8 million, including cash and cash equivalents and available borrowing capacity under its credit facility.
Outlook for Fiscal 2026 and Guidance Policy
The Company is reaffirming its previously issued fiscal 2026 guidance, presented below. The projections are as of this date and the Company assumes no obligation to update or supplement this information.
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 first quarter of 2026 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 13759219. The replay will be available through Tuesday, May 26, 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, growing momentum, 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 capital structure initiatives including refinancing and refranchising; our ability to gain and sustain efficiency in our G&A, labor, and operations to deliver growth in profitability; changes to our restaurant portfolio; our restaurant refresh program and technology investments; 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: 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; costs associated with our lease obligations, including those incurred through closures and sale-leaseback transactions, as well as potential contingent lease liability; 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, stockholders, and others. 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 the first quarter of fiscal 2026:
Increase (Decrease) Versus Prior Year
Sixteen Weeks Ended
Sixteen Weeks Ended
April 19, 2026
April 20, 2025
Guest traffic
Average guest check
Total change in comparable restaurant revenue
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share data)
(Unaudited)
Sixteen Weeks Ended
April 19, 2026
April 20, 2025
Restaurant revenue
Franchise revenue
Other revenue
Total revenues
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales
Other operating
Depreciation and amortization
General and administrative
Other (gains) charges, net
Total costs and expenses
Income (loss) from operations
Other (income) expense:
Interest expense
Interest (income) and other, net
Total other expenses, net
Income (loss) before income taxes
Income tax (benefit) expense
Net income (loss)
Income (loss) per share:
Weighted average shares outstanding:
RED ROBIN GOURMET BURGERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
April 19, 2026
December 28, 2025
Current assets:
Cash and cash equivalents
Accounts receivable, net
Inventories
Prepaid expenses and other current assets
Restricted cash
Total current assets
Property and equipment, net
Operating lease assets, net
Intangible assets, net
Assets held for sale
Other assets, net
Total assets
Liabilities and stockholders' equity (deficit):
Current liabilities:
Accounts payable
Accrued payroll and payroll-related liabilities
Unearned revenue
Current portion of operating lease liabilities
Accrued liabilities and other
Total current liabilities
Long-term debt
Long-term portion of operating lease liabilities
Other non-current liabilities
Total liabilities
Stockholders' equity (deficit):
Common stock; $0.001 par value: 45,000 shares authorized; 22,050 shares issued; 18,252 and 18,009 shares outstanding as of April 19, 2026 and December 28, 2025
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of April 19, 2026 and December 28, 2025
Treasury stock 3,798 and 4,041 shares, at cost, as of April 19, 2026 and December 28, 2025
Paid-in capital
Accumulated other comprehensive income (loss), net of tax
Retained earnings (accumulated deficit)
Total stockholders' equity (deficit)
$ (106,655)
$ (106,348)
Total liabilities and stockholders' equity (deficit)
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP") throughout this press release, the Company has provided certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include the following: (i) Restaurant level operating profit, (ii) net income (loss) before interest expense, income taxes, and depreciation and amortization ("EBITDA"), (iii) adjusted EBITDA, and (iv) adjusted net income (loss) and adjusted net income per share - diluted.
We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. Management believes this supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein.
Restaurant Level Operating Profit
The Company believes restaurant level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant level operating efficiency and performance. The Company defines restaurant level operating profit to be income from operations less franchise revenue and other revenue, plus other (gains) charges, net, selling, general and administrative, and depreciation and amortization. The measure includes restaurant level occupancy costs that include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes costs associated with selling, general and administrative functions, as well as other (gains) charges, net because these costs are non-operating and therefore not related to the ongoing operations of its restaurants. Restaurant level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income (loss) from operations as an indicator of financial performance. Restaurant level operating profit as presented may not be comparable to other similarly titled measures of other companies in the Company's industry.
The following table reconciles income (loss) from operations to restaurant level operating profit in thousands and in percent of total revenue for the period presented:
Sixteen Weeks Ended
April 19, 2026
April 20, 2025
Income (loss) from operations
Franchise revenue and other revenue
Other (gains) charges, net
General and administrative
Depreciation and amortization
Restaurant level operating profit
Income (loss) from operations as a percentage of total revenues
Restaurant level operating profit margin (as a percentage of restaurant revenue)
EBITDA and Adjusted EBITDA
We define EBITDA as net income (loss) before interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA, further adjusted to exclude the impact of non-operating items including changes in estimates, asset impairments, litigation contingencies, gains (losses) on debt extinguishment, restaurant and office closure costs, gains (losses) on restaurant sales, severance and executive transition costs, stock-based compensation expense and other non-cash or discrete items. EBITDA and adjusted EBITDA are supplemental measures of our performance that we believe gives the reader additional insight into the ongoing operational results of the Company.
The following table reconciles net income (loss) to adjusted EBITDA in thousands for the period presented:
Sixteen Weeks Ended
April 19, 2026
April 20, 2025
Net income (loss) as reported
Interest expense, net(1)
Income tax (benefit) expense
Depreciation and amortization
Stock-based compensation expense(2)
Other (gains) charges, net:
Asset impairment and restaurant closure costs, net
Gain on sale of restaurant property
Severance and executive transition
Litigation contingencies
Asset disposal and other, net
Adjusted EBITDA
Interest expense, net was comprised of interest expense and interest income, the latter of which was included in interest (income) and other, net on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
Consisted of compensation expense associated with stock-based awards including phantom awards that may be settled in stock or cash at the Company's option and stock appreciation rights, which are settled in cash.
Adjusted Net Income (loss) Per Diluted Share
We define adjusted net income (loss) per diluted share as net income (loss) excluding the impact of non-operating items including changes in estimates, asset impairments, litigation contingencies, gains (losses) on debt extinguishment, restaurant and office closure costs, gains (losses) on restaurant sales, severance and executive transition costs, stock-based compensation expense and other non-cash or discrete items; net of income tax impacts. Adjusted net income (loss) per share - diluted is a supplemental measure of our performance that we believe gives the reader additional insight into the ongoing operational results of the Company.
The following table reconciles net income (loss) to adjusted net income (loss) and adjusted net income (loss) per share - diluted for the period presented:
Sixteen Weeks Ended
(Dollars and shares in thousands, except per share amounts)
April 19, 2026
April 20, 2025
Net income (loss) as reported
Stock-based compensation expense(1)
Other (gains) charges, net:
Asset impairment and restaurant closure costs, net
Gain on sale of restaurant property
Severance and executive transition
Litigation contingencies
Asset disposal and other, net
Income tax effect(2)
Adjusted net income (loss)
Adjusted net income (loss) per diluted share:
Net income (loss) as reported
Stock-based compensation expense(1)
Other (gains) charges, net:
Asset impairment and restaurant closure costs, net
Gain on sale of restaurant property
Severance and executive transition
Litigation contingencies
Asset disposal and other, net
Income tax effect(2)
Adjusted net income (loss) per share - diluted
Weighted average shares outstanding:
Consists of compensation expense associated with stock-based awards including phantom awards that may be settled in stock or cash at the Company's option and stock appreciation rights, which are settled in cash.
Assumed a 26% income tax rate, representing a blended average of federal and state statutory rates.
Dilutive securities were included in the computation of adjusted net income (loss) per share - diluted for the sixteen weeks ended April 19, 2026, because the Company reported an adjusted net income for the period. This differs from the GAAP net income (loss) per share - diluted calculation seen on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as the Company reported a net loss for the sixteen weeks ended April 19, 2026.
Sources consulted (web research):
- Red Robin Gourmet Burgers Inc Reports Results For The
- 8 K Red Robin Gourmet Burgers Inc Reports Material Event 5b4a466141a6
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Source: PR Newswire