Red Robin sizzles 12% premarket on earnings beat, eyes profitable growth

[Young man eating a tasty burger]
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Red Robin Gourmet Burgers (NASDAQ:RRGB [https://seekingalpha.com/symbol/RRGB]) rose nearly 12% in premarket trading on Thursday following a quarterly earnings beat, despite lowering its 2025 revenue forecast to approximately $1.2 billion.

The management’s tone [https://seekingalpha.com/news/4485086-red-robin-outlines-1_2b-revenue-target-and-pivots-to-data-driven-marketing-as-traffic] grew more proactive and optimistic, underlining early progress in traffic-driving initiatives and refranchising efforts, yet acknowledged increased commodity headwinds and the need for careful reinvestment.

Guidance for total revenue was adjusted downward to approximately $1.2 billion from a prior range up to $1.23 billion, reflecting greater caution due to traffic declines.

The company identified continued guest traffic declines as a core challenge, with comparable restaurant sales projected to fall 3%–4% in the remainder of 2025.

Alexander Russell Slagle from Jefferies inquired [https://seekingalpha.com/article/4813346-red-robin-gourmet-burgers-inc-rrgb-q2-2025-earnings-call-transcript] about near-term guest experience initiatives and marketing spend. David A. Pace, president and CEO, described a holistic approach including facility upgrades and technology investments.

While Todd Wilson, CFO, detailed that "in the back half of the year, we frankly expect about the same" selling expense as the first half, split evenly between Q3 and Q4, representing an increase year-over-year.

Wilson added that Red Robin (NASDAQ:RRGB [https://seekingalpha.com/symbol/RRGB]) will end 2025 with 386 company-owned restaurants in operation. Restaurant-level operating profit is expected to be 12% to 13%, and adjusted EBITDA is projected at $60 million to $65 million, both in line with prior guidance.

Red Robin (RRGB [https://seekingalpha.com/symbol/RRGB]) is trading up 9% YTD, compared to the broader S&P 500 market, which is up 10%.

According to one Seeking Alpha author, despite Q2 headwinds [https://seekingalpha.com/article/4808248-red-robin-gourmet-burgers-a-speculative-buy-facing-q2-headwinds-on-the-road-to-comeback] and traffic declines, the new $9.99 Big Yummm value platform could drive a traffic rebound in Q3 if well-received.

MORE ON RED ROBIN GOURMET BURGERS

* Red Robin Gourmet Burgers, Inc. (RRGB) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4813346-red-robin-gourmet-burgers-inc-rrgb-q2-2025-earnings-call-transcript]
* Red Robin Gourmet Burgers: A Speculative Buy Facing Q2 Headwinds On The Road To Comeback [https://seekingalpha.com/article/4808248-red-robin-gourmet-burgers-a-speculative-buy-facing-q2-headwinds-on-the-road-to-comeback]
* Red Robin Gourmet Burgers: Turnaround In Financial Results Could Fuel A Short Squeeze [https://seekingalpha.com/article/4792052-red-robin-turnaround-in-financial-results-could-fuel-a-short-squeeze]
* Biggest stock movers Thursday: COHR, RRGB, and more [https://seekingalpha.com/news/4485160-biggest-stock-movers-thursday-cohr-rrgb-and-more]
* Red Robin outlines $1.2B revenue target and pivots to data-driven marketing as traffic declines 3%-4% [https://seekingalpha.com/news/4485086-red-robin-outlines-1_2b-revenue-target-and-pivots-to-data-driven-marketing-as-traffic]