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Jul 13, 2025
Red Robin Q2 2025 Earnings Report
Red Robin returned to profitability in Q2 2025 with improved margins and early traction from its turnaround plan.
Key Takeaways
Red Robin delivered $283.7M in revenue and returned to positive net income of $4.0M. The company saw operational improvements and a rise in restaurant-level margins, driven by cost control and the First Choice plan, despite a decline in comparable restaurant sales.
Total revenues for Q2 2025 were $283.7 million, a decrease of $16.5 million compared to Q2 2024.
Net income for Q2 2025 was $4.0 million, a $13.5 million increase from a net loss of $9.5 million in Q2 2024.
Adjusted EBITDA for Q2 2025 increased by 64% to $22.4 million, up from $13.6 million in Q2 2024.
Restaurant-level operating profit margin improved to 14.5% in Q2 2025, compared to 11.8% in Q2 2024.
Revenue by Segment
Forward Guidance
Red Robin maintained its FY25 guidance, projecting $1.2B in total revenue, with improved restaurant-level profit and EBITDA margins, though comparable restaurant sales are expected to decline modestly.
Positive Outlook
- FY25 revenue guidance reaffirmed at ~$1.2B
- Restaurant-level operating margin expected at 12%-13%
- Adjusted EBITDA outlook remains $60M–$65M
- CapEx to remain steady at ~$30M
- Capital flexibility supports turnaround plan investment
Challenges Ahead
- Comparable restaurant sales projected to decline 3%-4% in H2
- Guest traffic continues to face pressure
- Deferred loyalty revenue continues to offset comp growth
- Limited new restaurant openings expected
Historical Earnings Impact
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Avg. Return Before/After Earnings
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