Red Robin's 'First Choice' plan is showing early promise, with improved margins, reduced debt, and a sharper focus on value and balance sheet cleanup. Despite Q2 headwinds and traffic declines, the new $9.99 Big Yummm value platform could drive a traffic rebound in Q3 if well received. Refranchising 25-75 locations and cost-cutting could significantly lower net debt and improve the net debt/EBITDA ratio, boosting financial flexibility.
The consensus price target hints at a 49.1% upside potential for Red Robin (RRGB). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Red Robin (RRGB) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
Red Robin (RRGB) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
Red Robin Gourmet Burgers NASDAQ: RRGB first-quarter 2025 earnings news in late May caused an all-day rush for the stock, sending shares of the casual dining chain up close to 100% in a single day. This quick jump grabbed the attention of investors.
Red Robin's Q1 turnaround to profitability, driven by cost containment and store closures, has improved its balance sheet and sparked renewed investor interest. Despite strong Q1 results, full-year guidance remains cautious, with profitability likely peaking in Q1 and potential for a return to modest losses later in 2025. Valuation metrics suggest upside potential, with the stock trading at significant discounts to sector averages and historical levels, making $7-$10 a reasonable target.
Red Robin's turnaround efforts are showing progress, with Q1 2025 results surprising positively: higher revenue, improved comps, and significant debt reduction. Management reforms—improved food quality, guest experience, and cost controls—are starting to yield tangible operational and financial benefits. A large debt balance, due 2027, remains, it's still not clear if improvements will occur fast enough to refinance this.
RRGB's fiscal first-quarter results benefit from stronger ops, rising comps and progress in its multi-year turnaround plan.
Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB ) Q1 2025 Earnings Conference Call May 29, 2025 4:30 PM ET Company Participants Dave Pace - President and CEO G.J. Hart - Former CEO Todd Wilson - CFO Conference Call Participants Todd Brooks - The Benchmark Company Alex Slagle - Jefferies Mark Smith - Lake Street Capital Operator Good afternoon, everyone.
The headline numbers for Red Robin (RRGB) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Red Robin (RRGB) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of a loss of $0.57 per share. This compares to loss of $0.80 per share a year ago.
RRGB is expected to report a loss in its first-quarter results amid weak traffic and rising costs, though menu upgrades and digital efforts may offer some support.